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AfDB approves US$150 Million loan for Mozambique’s 100MW floating solar project on Cahora Bassa Lake

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  • Mozambique to add 100 MW of floating solar capacity to the national grid, with potential expansion to 200 MW.
  • Hybrid hydro-solar system aims to optimise water use and support climate resilience.
  • Project backed by AfDB, Green Climate Fund, World Bank and European Union, set for completion in 2028.

The African Development Bank (AfDB) has approved a US$150 million loan for Mozambique to develop a large-scale floating solar project on Cahora Bassa Lake. The initiative will install a photovoltaic system on the reservoir of one of Africa’s largest hydroelectric facilities, creating a hybrid energy model that combines hydropower with daytime solar generation.

Electricidade de Moçambique (EDM), the state-owned utility, will oversee the design, construction and integration of the solar system into the national grid. The project is expected to contribute 100 MW of solar capacity, with potential to expand to 200 MW, while enabling the dam to conserve water during peak sunshine hours for evening demand.

The floating arrays offer several benefits, including reduced water evaporation, protection of agricultural and forest land, and improved panel efficiency due to the natural cooling effect of the reservoir.

Construction is scheduled to start in the third quarter of 2026, with full operation anticipated by the end of 2028. The total project cost of US$150 million is supported by a coalition that includes the AfDB, the Green Climate Fund, the World Bank and the European Union. The project is positioned as a demonstration model for future hybrid hydro-solar developments across Africa.

Author: Bryan Groenendaal

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