Mozambique: Benga Coal Fired Plant Acquires More Land for Renewables & Storage

  • Power solutions company Kibo Energy announced that it has successfully acquired additional land adjoining to the coal fired Benga Power Plant Project in the Tete province, increasing the total project area with an additional 345 hectares.
  • Alongside hosting a 150-300MW thermal power plant, which is being developed as part of a joint-venture agreement with local energy company Termoeléctrica de Benga, the expanded land holding provides room for the intended renewable and long-duration storage energy projects in line with Kibo’s commitment to creating reliable, sustainable and affordable electricity.

In support of this commitment, the company has also finalised and signed a new Memorandum of Understanding (MoU) with Mozambican state-owned electric utility Electricidade de Mocambique (EDM), to guide and facilitate further development of Benga, as part of EDM’s mandate to develop electricity infrastructure and implement electricity projects in Mozambique.

The terms of the new MoU with EDM remains, in essence, the same as those of the MoU that preceded the latest version and focusses on facilitating the project from its current development status to fruition.

The current MoU will be valid for an initial period of 12 months unless the parties agree to extend its validity or to terminate it early.

Louis Coetzee, CEO of Kibo Energy said: “Today’s news marks a very positive development in the advancement of Benga. We have been in regular discussion with EDM to determine ways in which we can work together to commercialise the project and create affordable and reliable electricity supplies in Mozambique. This MoU marks significant progression in these talks and is testament to the quality of our project proposal.”


Coetzee continued: “We now look forward to further de-risking and developing Benga and continuing our engagement with EDM by progressing to the next development phase, having completed and submitted a positive Definitive Feasibility Study and independent financial model on Benga to EDM.

“We firmly believe in the significant value potential of Benga following the extensive feasibility work and technical studies done to date and it is as a result of this that we decided to expand our land title; this enlarged landholding will enable us to establish the planned thermal power plant whilst also providing room to build renewable energy projects with long-duration storage, in pursuit of our strategy of focused and deliberate transition away from fossil fuel-based energy solutions.

Author: Babalwa Bungane

This article was originally published on ESI Africa and is republished with permission with minor editorial changes.

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