The Central Termica de Temane (CTT), also known as the Temane thermal power plant, and the Temane Transmission Project (TTP) in Mozambique were both inaugurated with the participation of the US government. These two energy projects will contribute to energy security, increased access to inexpensive electricity, and the country’s participation in the regional power market.
The United States Agency for International Development (USAID) and the US International Development Finance Corporation supplied funding to both projects (DFC). The 450MW CTT plant will transmit much-needed electricity from northern Inhambane Province to the more populous south once it is completed, thanks to the 563km TTP transmission line.
“The US Government, the Government of Mozambique and other partners worked closely to get us here today, breaking ground on a project that supports Mozambique in its goal to provide every citizen with access to electricity by 2030,” said Chargé d’Affaires of the US Embassy to Mozambique Abigail Dressel. “The Temane energy project is essential to the economic transformation underway in Mozambique and southern Africa and we’re proud to support it.”
The US International Development Finance Corporation will provide up to $200m in a direct loan to CTT, a public-private partnership between Electricidade de Mozambique (EDM), Globeleq and Sasol Africa. The loan will help support the design, construction and eventual operation of the Temane gas-fired power station, which will bring low-cost baseload energy online at 36% below EDM’s current average cost of power. It will also diversify Mozambique’s energy mix, currently heavily reliant on hydroelectric power.
The US Government’s Power Africa initiative, coordinated by USAID, provided EDM with an embedded advisor from January 2018 to December 2020 to support TTP’s evolving organisational and technical needs. The advisor was instrumental in establishing the TTP Project Management Office and advancing the project to financial close. Construction of the TTP is expected to create around 3,000 jobs, of which 200 will be permanent once TTP is operational.
“Power Africa is proud to support the Temane Transmission Project as it connects more people to power, opens up cross-border trade opportunities, strengthens the country’s energy resilience, and accelerates economic development,” said Power Africa Coordinator Mark Carrato.
Increased access to energy supply and improved economic development represent critical components of the broader US Government assistance in Mozambique. In close collaboration with the Government of Mozambique, the US Government provides more than $500 million in annual assistance to help Mozambicans build a healthier, more democratic, more secure, more prosperous country for all.