Temane Thermal Power Station


Temane Thermal Power Station, is a natural gas power plant under construction in Mozambique. When completed, the energy generated will be purchased by Electricidade de Moçambique, the government-owned electric utility company, under a long-term power purchase agreement.

Location

The power station is located in the town of Temane, in Inhambane Province in southern Mozambique. Temane is situated about, by road, north of the city of Inhambane, where the provincial capital is located. This is approximately, by road, northeast of the city of Maputo, the capital of Mozambique.

Developers

The power station is under development by a consortium comprising the corporate entities illustrated in the table below:
RankDevelopment PartnerDomicileRelationship
1GlobeleqUnited KingdomEquity Investor
2eleQtraUnited KingdomEquity Investor
3EDMMozambiqueEquity Investor
4Sasol Africa LimitedSouth AfricaEquity Investor

History

This power project was originally owned by EDM of Mozambique and Sasol New Energy Holdings of South Africa. In December 2020, the owner/developers brought on Globeleq and eleQtra. The consortium jointly formed a special purpose vehicle company to develop this power station, which they named Temane Energy Consortium . Financial closure was achieved in December 2020. The power station will be designed and constructed by TSK Electronica y Electricidad S.A., a Spanish electronic and electricity construction company.

Funding

The table below illustrates the funding sources for the Temane Thermal Power Station. The list of funders may not be complete.
RankDevelopment PartnerContribution in EurosPercentageNotes
1The World Bank Group420 millionGrant & Guarantees
2U.S. International Development Finance Corporation200 millionLoan
3OPEC Fund50 millionLoan
4Temane Energy ConsortiumOwner/Developer Consortium
5Government of MozambiqueEquity Investor
Total750 million100.00

Associated developments

In addition to the natural gas-powered electricity generating plant, as part of the same development, of associated transmission infrastructure will be established to distribute the energy generated to neighboring communities and where possible sell any excess to the Southern Africa Power Pool.
It is expected that when this power station comes online in 2022, a portion of the energy generated here, amounting to 100 megawatts, will be sold to Botswana Power Corporation, under a one-year power purchase agreement signed in April 2022, between EDM and BPC, in Gaborone, Botswana.