• MIGA issues $7.96 million guarantee for Mozambique solar project
• Guarantee covers PPA breach-of-contract risk with utility EDM
• Plant supplies 21,800 customers with solar and battery storage

The Multilateral Investment Guarantee Agency (MIGA) has issued a $7.96 million guarantee over 20 years to Globeleq Africa, a key investor and developer in the Central Eléctrica de Tetereane (CET) project, the agency said in a statement on Thursday, March 5.

The guarantee covers breach-of-contract risk related to a 25-year power purchase agreement (PPA) with Electricidade de Moçambique (EDM), the state-owned electricity utility.

“MIGA’s guarantee and our partnership with Globeleq Africa demonstrate how we can help developing economies like Mozambique by advancing the least-cost, sustainable energy solutions they need to grow and develop,” said Tsutomu Yamamoto, MIGA's director general.

Mozambique’s first solar plant with storage

Located in Cuamba district, CET includes a solar photovoltaic plant with a peak capacity of about 19 megawatt-peak (MWp). The facility is paired with a 1.86-MW battery storage system with a storage capacity of 6.7 MWh.

Developed by Globeleq in partnership with Source Energia and EDM, the project represents an investment of about $36 million. Commissioned in September 2023, it is Mozambique’s first independent power producer (IPP) project to integrate grid-scale battery storage.

The plant can supply electricity to around 21,800 customers and is expected to avoid more than 172,000 metric tons of CO₂ emissions over its lifetime.

Part of Mozambique’s energy transition

The guarantee comes as Mozambique seeks to expand electricity access, attract private investment and diversify its energy mix. In November 2023, the government approved an energy transition plan valued at around $80 billion aimed at reducing the country’s reliance on fossil fuels.

Three years later, the African Development Bank (AfDB) launched negotiations with Mozambican authorities to finance the Mphanda Nkuwa hydropower project, estimated at $4.5 billion. Maputo has also requested a guarantee facility to help cover EDM’s payment obligations.

Guarantee instruments can play a key role in securing investment in energy infrastructure. In its report Financing Electricity Access in Africa, published in October 2025, the International Energy Agency (IEA) said such mechanisms provide “a financial safety net in the event of project default, non-payment or breach of contractual obligations,” reducing risks for investors and lenders.

The agency added that these instruments help mobilize private capital in markets that remain underdeveloped, particularly across sub-Saharan Africa.

Abdoullah Diop