Supporting Mozambique's energy sector

The African Development Bank Group (AfDB) has approved US$43.6mn for the construction of the Namaacha–Boane transmission line and related electricity infrastructure in Mozambique

Mozambique’s national power utility, Electricidade de Moçambique (EDM), will implement the project in partnership with Central Eléctrica da Namaacha (CEN), the project company, a private sector-led development group involving Globeleq Africa Limited and Source Energia.

“This project is a major step forward in Mozambique’s transition to a low-carbon energy future,” said Kevin Kariuki, the bank’s vice president for power, energy, climate and green growth.

“It will deliver affordable electricity, support local industry, and improve livelihoods.”

 The new infrastructure will transmit up to 332 gigawatt-hours  of clean wind energy from the future 120 MW Namaacha wind farm in the southwestern part of the country to homes and businesses across Mozambique and in the wider southern African region.

The wind farm project, located about 50 kilometres west of Maputo, is also being put together by Globeleq and Source Energia.

Under the project, two new 43-kilometre, single-circuit, 66-kilovolt transmission lines will be constructed in addition to network upgrades and equipment to ensure stable power delivery.

Once completed, the project will  support thousands of new electricity connections in rural and underserved communities.

It will also cut carbon dioxide emissions by over 71,000 tons annually and bolster the regional trade in energy within the Southern African Power Pool (SAPP).

The total financing package comprises US$33.2mn from the African Development Fund, a part of the AfDB, and US$10.4mn sourced from its Climate Action Window, a dedicated fund supporting 37 low-income African countries with climate-resilient infrastructure to meet commitments under the Paris Agreement. Mozambique government is also contributing to the project.

“This investment strengthens the backbone of Mozambique’s power system while accelerating access to clean energy for people who need it most,” said Wale Shonibare, director of the bank’s Energy Financial Solutions, Policy, and Regulations Department.

The project also aligns with the AfDB’s “Light Up and Power Africa” strategic priority as well as Mozambique’s goal, in alignment with the Mission 300 initiative, to achieve universal electrification by 2030.

Over 600 million people in Africa still lack access to electricity, the lowest access rate of any continent.

In response, the AfDBk, the World Bank and other partners launched Mission 300 in 2024, an initiative that brings together African governments, the private sector, and development partners to deliver affordable power, expand electricity access, boost efficiency, and attract private investment to the sector.

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Wärtsilä to supply, operate 30MW power facility for Elektron Energy’s VIPL on Victoria Island, Lagos. (Image source: Wärtsilä)

Wärtsilä, the global technology group, has been selected to supply and operate key power generation systems for a new 30 MW natural gas-fired power plant on Victoria Island, Lagos

The project is being executed by Victoria Island Power Ltd. (VIPL), a special purpose entity established by Nigerian energy developer Elektron Energy. Wärtsilä will also manage operations and maintenance (O&M) of the facility for an initial five-year term.

The contract, which includes equipment delivery and O&M services, was signed in the fourth quarter of 2024. The new facility will be embedded within the Eko Electricity Distribution Company (EKEDC) network at its NEPA Close site and is intended to improve electricity reliability for EKEDC’s consumers.

The project’s structure relies on strong collaboration between Elektron Energy and its Nigerian partners. VIPL has entered into power purchase agreements (PPAs) with commercial clients under a service-based tariff model.

“Elektron has conceptualised, developed, and funded the IPP and has secured the implementation by engaging Wärtsilä to assume single point responsibility for the major construction and operational aspects related to the eventual power generation facility. This pioneering project relies on reciprocating internal combustion engine (RICE) technology that has the efficiency and flexibility to deliver clean and reliable electricity to our customers,” said Deen Solebo, Co-CEO & CFO at Elektron Energy.

Wärtsilä’s scope includes three 34SG gas engine-generator units and all required auxiliary components. The modular design of the facility allows for a future fourth engine to be integrated with minimal interruption.

“I was very impressed by Wärtsilä’s state-of-the-art manufacturing facilities during my visit to the Sustainable Technology Hub in Vaasa, Finland in late Q3 2024 and am happy with the readiness of the engine-generator sets. In parallel, clearing and preparation activities at the NEPA Close Site are progressing well and are due for completion within Q2 2025, after which construction can start. Commissioning is expected 15 months thereafter and the Operations & Maintenance agreement is timed to commence prior to the new build project reaching commercial operations date (COD),” remarked Solebo.

Marc Thiriet, energy business Director, Africa at Wärtsilä Energy, added, “Wärtsilä’s core competence in the engine power plant and services aspects represents a unique combination of a global company with a local presence that provides developers and financiers the comfort to invest and gives end-customers the confidence to sign up for PPA’s with medium to long-term tenures. The Wärtsilä solution is extensively adopted by industrial, utility & IPP customers worldwide and the excellent credentials and track record have been recognised as a great value proposition by lenders, insurance companies, and multi-lateral funding institutions.”

Funding for the project has been made possible through support from several key institutional investors and financial organisations.

“Elektron is especially grateful to the invaluable contributions of its institutional investors and funding partners who have made this project possible including ARM Harith Infrastructure Fund LP, Nigerian Sovereign Investment Authority, InfraCredit, Bank of Industry, FBN Quest, and Stanbic Infrastructure Partners,” added Solebo. 

As Nigeria continues to seek dependable and scalable power infrastructure, this Victoria Island facility is set to become a benchmark for future independent power projects in the country, especially those that are locally developed and financed.

Sasol's Secunda power plant in South Africa. (Image source: Sasol)

GE Vernova has completed a modernisation project at Sasol’s Secunda power plant in Mpumalanga, South Africa

The scope of work included the replacement of the existing pre-combustor system with a new DLN1+ combustor supplemented by the Fuel Gas Module (FGM) skid to increase the operational efficiency of the two installed 9E gas turbines and reduce carbon emissions.

In a statement, GE Vernova said the project serves as a model for modernising power plants across Africa and increases operational efficiency, while reducing NOx emissions.

The project is also expected to lead to water consumption savings equivalent to about 64 Olympic pools per turbine annually, it noted.

“This project exemplifies our purpose to electrify the world," said Joseph Anis, president and CEO of GE Vernova's Gas Power business in Europe, Middle East, and Africa.

The statement added that innovation and technologies willenable more efficient energy production with reduced emissions, without requiring entirely new infrastructure.

“Building on our advanced combustion technologies, we are helping Sasol address South Africa’s energy needs more efficiently. Together, we are demonstrating how advanced technologies can deliver tangible benefits for both businesses and communities,” said Anis.

Other improvements from the Secunda upgrade include an extension of maintenance intervals, reducing downtime and operational costs, as well as enhanced reliability of the power supply delivered to the national grid.

There was also an efficiency improvement compared to the previous combustor, translating to approximately 10,000 metric tons less CO2 emitted per gas turbine, supporting Sasol’s environmental objectives, GE Vernova reported.

GE has contributed to the development of Africa’s energy infrastructure for over a century, supporting power generation, transmission and distribution, as well as energy sector software applications and community outreach.

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Daystar installs 532kWp solar system at Nexans’ Tema factory, supplying 55% of daytime electricity. (Image source: Daystar Power)

Daystar Power has successfully completed the commissioning of a 532kWp grid-tied solar energy system at Nexans’ factory in Tema, Ghana. Nexans is a renowned global provider of cable systems and energy solutions

The project features 918 photovoltaic (PV) panels in a fully ground-mounted layout—the first of its kind installed by Daystar Power in Ghana. This solar array is projected to generate 47.7 MWh annually, supplying up to 55% of the factory’s daytime electricity needs. Equipped with an ENcombi controller, the system efficiently synchronises with both the national grid and on-site generators, ensuring 99.9% uptime and enabling proactive maintenance.

“Companies in Ghana face the pressing need to decarbonise their operations. Nexans is a great example of how companies can adopt solar energy to meet their carbon emissions targets and drive energy cost savings,” said Victor Ezenwoko, Ghana country head of Daystar Power. “We couldn’t be prouder to have our first ground-mounted system in Ghana located in the country’s leading manufacturing hub.”

Nexans' new solar power system is a key component of its broader sustainability strategy to lower emissions and reduce reliance on conventional power sources at its Ghanaian facility.

“At Nexans Kabelmetal, we are committed to integrating sustainable energy solutions into our operations, and this new solar system is a significant step towards achieving our environmental goals. Our partnership with Daystar Power exemplifies our dedication to innovation and sustainability as we work towards our goal of net-zero emissions by 2050,” said Alexander Quarcoopome, CEO of Nexans Kabelmetal.