Globeleq Secures $99M Insurance for First Wind Farm in Mozambique

On 9 July 2024, the US International Development Finance Corporation (DFC) announced that it has approved a USD 80 million Political Risk Insurance to Globeleq for its wind farm project in Mozambique. The wind power project is designed for a capacity of 120 MW.

It is worth noting that most of the electricity in Mozambique comes from one single hydroelectric power plant. Indeed, the Cahora Bassa Dam produced more than 2 GW and is located across the Zambezi River in Tete.

The proposed wind farm is situated near Namaacha in the south of Mozambique. It will be about 50 km west of the capital city of Maputo. The location is not far from the South African border and there might be a possibility to export some power via the Southern Africa Power Pool (SAPP). South Africa has been experiencing chronic power shortages and load-shedding for many years now.

The project developer is British International Investment (BII) which is the Development Finance Institution (#DFI) of the UK government. #BII is actually the controlling shareholder of Globeleq with a 70% share ownership. In addition to the wind far, BII is participating in the construction of a 450 MW gas-fired power plant at Temane in Inhambane province and has completed two PV projects with a combined capacity of 60 MW in Mozambique.

The wind power project is expected to reach financial close by the end of 2024 and implementation can start right after. The total cost of the project is estimated at USD 268 million and is in line with the Mozambique’s Nationally Determined Contribution (#NDC) toward 3NetZero.