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EDF consortium signs deal to develop a 1.5 GW hydro project in Mozambique

The government of Mozambique has selected a consortium of EDF (40%), TotalEnergies (30%) and Sumitomo Corporation (30%) for the development of the 1.5 GW Mphanda Nkuwa (MNK) hydropower project in Mozambique. The consortium was chosen as a strategic partner and entered into a joint development agreement for the US$5bn project, which is located on the Zambezi River, 60 km downstream from Cahora Bassa. 

The joint development agreement was signed with the Gabinete de Implementação do Projecto Hidroeléctrico de Mphanda Nkuwa (GMNK), Electricidade de Moçambique (EDM) and Hidroeléctrica de Cahora Bassa (HCB). EDM and HCB will own 30% of the project, while the consortium will own 70% of it. A framework agreement was also signed with the Ministry of Mineral Resources and Energy (MIREME), paving the way for the future concession agreement. 

The government of Mozambique previously announced that the country aimed to reach an electrification rate of 100% by 2030 (up from 44% in 2022), and to double hydropower capacity by 2025. As of end-2021, Mozambique’s hydropower capacity stood at 2.2 GW, i.e., 77% of the total capacity.

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