#Country Updates #Mozambique #News #Upstream Exploration & Production

Mozambique’s Temane Transmission Project Advances with U.S. Support

Mozambique’s $506-million Temane Transmission Project (TTP) is set to transform the region by delivering electricity from power plants in the northern part of the Inhambane Province – including the Central Termica de Temane (CTT) gas-fired power plant – to the capital of Maputo in the south. Gas from the Sasol-operated Pande-Temane Inhassoro fields will feed the 450 MW CTT plant, which will then supply the 563-km high-voltage transmission line and deliver affordable power to state utility Electricidade de Moçambique (EDM) through a 25-year tolling agreement. The large-scale gas development project and associated infrastructure represent a more than two-billion-dollar investment, supported by grants and guarantees from the World Bank, Norwegian Trust Fund, African Development Bank, Islamic Development Bank and OPEC Fund for International Development.

With funding secured in July 2019 and the disbursement of debt funding approved last December, project construction is now set to commence. In addition to its mélange of international financiers, the project has been heavily supported by Power Africa, a U.S. Government-led partnership that seeks to generate 30,000 MW and 60 million connections across the continent by 2030. The initiative has lent organizational and technical support to the project for the past two years, liaising between financiers and EDM to finalize project financing and build local capacity to be able to fulfill operational requirements. In total, Power Africa has aided in the development of 122 MW of electricity generation projects in Mozambique, demonstrating the scope of financing, partnership and knowledge transfer opportunities that exist between U.S. entities and Southern Africa’s largest power markets.

Domestic and Regional ‘Domino Effect’

Given the scale of the project, the impact of the TPP is not limited to increasing installed generation capacity. Despite holding the largest power generation potential in Southern Africa – with 187 GW of combined coal, hydro, gas wind and solar resources – Mozambique’s electricity access rate stands at approximately 40%, primarily due to limited transmission and distribution networks. 

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Source: EnergyCapitalPower

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