RWANDA/MOZAMBIQUE – The Norwegian Investment Fund for Developing Countries (Norfund) has announced the sale of its assets in two operational solar photovoltaic power plants in Rwanda and Mozambique.
In Mozambique, NORFUND is divesting its stake in the 40 MWp Macuba solar photovoltaic plant to Globeleq, an independent power producer (IPP) with whom it shares ownership alongside British International Investment (BII).
This move represents NORFUND’s exit from the project, redirecting its resources to new opportunities.
Meanwhile, in Rwanda, NORFUND played a pivotal role in establishing the country’s inaugural photovoltaic solar power plant in the Rubona district.
Operating since 2015 and connected to the Rwanda Energy Group (REG) grid, this plant boasts an impressive 8.5 MWp capacity.
NORFUND’s ownership stake in this infrastructure, locked in for an additional 16 years, has been transferred to US-based Fortis Green Fund I, Rwanda Holdings, and Axian Energy of Madagascar.
Mark Davis, NORFUND’s Vice President overseeing renewable energy, highlights that the asset sales will unlock capital for reinvestment in endeavors aimed at combating poverty and reducing emissions, aligning with the fund’s mission and broader sustainability goals.
In addition to these divestments, NORFUND remains actively engaged in renewable energy ventures, particularly decentralized solar systems for rural electrification.
Collaborating with partners such as WeLight and Sogemcom, NORFUND is involved in establishing small-scale electricity networks powered by photovoltaic solar energy in rural areas of Madagascar and Mali.
Simultaneously, other players in the renewable energy market, like Scatec, are also undergoing strategic transactions.
Scatec recently finalized the sale of its equity share in the Mocuba solar power plant in Mozambique to Globeleq, demonstrating a concerted effort to optimize portfolios and reallocate resources to focus markets.
This transaction, valued at US$8.5 million, reflects a commitment to enhancing value and fostering sustainable growth in the renewable energy sector.
Globeleq, known for its significant presence in Sub-Saharan Africa, assumes responsibility for the operation, maintenance, and asset management of the Mocuba solar power plant.
With a robust track record and a vast power production capacity, Globeleq is poised to ensure the continued success and efficiency of this vital energy asset.
The Mocuba solar power plant, located in Mozambique’s Zambézia Province, plays a crucial role in the nation’s energy landscape, producing approximately 75 GWh annually under a 25-year Power Purchase Agreement (PPA) with the state-owned utility, EDM.
Overall, these developments underscore the dynamic nature of the renewable energy sector in Africa, with stakeholders like NORFUND and Globeleq driving innovation, sustainability, and economic development through strategic investments and partnerships.
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