- Construction of the 450 MW Central Térmica de Temane gas fired power plant has resumed with commercial operations now expected in 2027.
- The US$652.3 million project will supply reliable baseload electricity to EDM under a 25 year tolling agreement and serve more than 800,000 consumers.
- The development forms part of a wider energy value chain investment exceeding US$2 billion, including new transmission infrastructure and grid interconnection.
Construction of Mozambique’s 450 MW Central Térmica de Temane (CTT) gas fired power plant has resumed, with commercial operations now targeted for 2027 following delays caused by severe weather conditions and contractual disputes.
The project is being developed by CTT, which is majority owned by Mozambique Power Invest (MPI), a joint venture between Globeleq and Electricidade de Moçambique (EDM). MPI holds an 85% stake in the project, while Sasol Africa owns the remaining 15%.
Located in the Inhassoro District of Inhambane Province, the power station will utilise natural gas from the Pande and Temane fields operated by Sasol and the state owned hydrocarbon company ENH. Once operational, the facility will provide low cost and reliable electricity to EDM under a 25 year tolling agreement, strengthening Mozambique’s power supply and supporting growing demand from households and businesses.
The plant is expected to provide electricity to more than 800,000 consumers and play a key role in expanding energy access across the country. Construction began in 2022 and is being undertaken by Turkish engineering contractor ENKA.
Financing for the US$652.3 million project has been secured through a consortium of international development finance institutions. The International Finance Corporation (IFC), together with B loan participants FMO and the Emerging Africa Infrastructure Fund, is providing US$253.5 million in debt financing. The US International Development Finance Corporation is contributing approximately US$191.5 million, while the OPEC Fund for International Development is providing US$50 million. The Multilateral Investment Guarantee Agency has also issued up to US$251.3 million in political risk insurance for private sector equity investors.
Beyond strengthening Mozambique’s generation capacity, the project is expected to support the country’s long term energy transition objectives. Designed with operational flexibility, the plant will provide both baseload and dispatchable power, enabling greater integration of renewable energy projects into the national grid while supporting lower carbon energy development.
The Temane power plant also underpins the development of the 563 km Temane Transmission Project, which will facilitate the first phase of the interconnection of Mozambique’s southern grid with the central and northern regions of the country. Together, the gas development, power generation facility and transmission infrastructure represent a combined investment exceeding US$2 billion.
Author: Bryan Groenendaal
