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Globeleq announced on 10 December that Spain’s TSK has been selected to build the 450MW Temane combined-cycle gas power plant in Inhambane province. The award followed a competitive procurement process. Temane will use Siemens turbines, which TSK has used in similarly sized projects elsewhere.

The UK government has announced that it will no longer provide funding for fossil fuel projects overseas as it prepares to host the COP26 climate conference in Glasgow next year. The UK has been talking up plans for a green economy as the end of the Brexit transition period approaches, and funding from UK Export Finance (UKEF) for oil and gas projects has attracted criticism at a time when Prime Minister Boris Johnson is keen to position the UK as a global leader on climate change.

Globeleq on 10 December announced that Spain’s TSK has been selected to build the 450MW Temane combined cycle gas power plant.

Investors, contractors and financiers have been reassessing southern Africa’s potential to emerge as a natural gas producer, supply hub and importer of molecules and electrons for gas-to-power (GTP) schemes. Mozambique’s emergence as an LNG exporter gives it potential to develop new gas-based industry and infrastructure. Developments in southern Mozambique further suggest it could drive a wider regional industry, with more gas exported by pipeline.

Electricidade de Moçambique signed three power purchase agreements (PPAs) on 30 September for two solar PV projects in Cuamba of 18MW and 36MW and a 26MW solar PV project in Mecufi. The 18MW project is being developed with Globeleq as majority investor, together with local partner Source Capital.

The Ministry of Mineral Resources and Energy (Mireme) has announced plans for four projects under the Proler renewable energy auctions programme, which aims to develop around 120MW of wind and solar IPP capacity with funding from the French Development Agency (AFD).

Three contracts have been signed for the supply of distribution transformers to the northern, central and southern regions of Mozambique, worth a combined $8.3m. The transformers are being supplied as part of the Mozambique Energy for All (ProEnergia) programme.

Mozambique is making preparations to launch a new licensing round including both onshore and offshore acreage. National Petroleum Institute (INP) vice-president exploration Augusto Macuvele told Frontier’s Africa E&P virtual summit the INP had held consultations with companies in January and February, asking what areas they would like to see included.

Despite reports from a number of news outlets that a 120MW wind project in Namaacha has begun construction, developers have told African Energy that this is not the case. eleQtra and Globeleq are each developing a 120MW wind project in Namaacha. The projects are in an early stage of development.

Total has signed an agreement with the government to set up a joint task force to ensure security for the Mozambique LNG project. The news comes after insurgents seized the port of Mocimboa da Praia in Cabo Delgado province, just south of the Afungi Peninsula where the LNG project is under construction.

Total on 17 July announced the signing of a $14.9bn senior debt financing agreement for Mozambique’s first onshore LNG development. The project financing for the $20bn development is the biggest ever secured in Africa and includes direct and covered loans from eight export credit agencies (ECAs) and 19 commercial bank facilities, and a $400m loan from the African Development Bank.

A new board has been appointed at Electricidade de Moçambique (EdM), bringing some notable changes. The term of the previous five-member board expired at the end of 2019 and it had been operating with a vacant seat for around 18 months. The government took the opportunity provided under the recently approved State Owned Enterprises Act to increase the size of the board from five executive directors to seven, which is expected to allow a better distribution of portfolios and has been welcomed by EdM insiders.

The government is considering three tariff measures to reduce the impact of Covid-19 on the power sector. African Energy understands that the first is a reduction in the tariff for social customers, the lowest income segment of Electricidade de Moçambique’s (EdM) customer base. This is unlikely to have a significant impact on EdM as social customers only comprise a small proportion of revenues.

Mozambique’s Energy Fund (Funae) is inviting bids from consultants to carry out feasibility studies and advise on procurement of 11 solar PV and battery mini-grids. The deadline for submissions is 19 May.The contract is expected to last 12 months. The mini-grids are being developed on a public-private partnership basis. The independent power producer will be responsible for financing, operating and maintaining the generation facilities through power purchase agreements with Electricidade de Moçambique (EdM).

Two studies under way on regional gas usage and associated economic development for the Nepad Business Foundation (NBF) are scheduled to be completed in June.The NBF is working with the Southern African Develop-ment Community (SADC) Secretariat to develop the first phase of the SADC Gas Masterplan and working with Mozambique’s Empresa Nacional de Hidrocarbonetos on potential domestic uses of gas from the Rovuma Basin. Chris Carnegie of the NBF told African Energy stakeholders were encouraged to get in touch to participate.