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Mozambique : AGGREKO inks TRI-PARTY POWER PURCHASE AGREEMENTS with two African utilities
Publish Date : 19-Mar-2013
Temporary energy provider Aggreko has inked Tri-Party Power Purchase Agreements (TPPA) with Mozambique utility Electricidade de Mocambique (EDM) and Namibian utility NamPower, for offering the firms with up to 32MW and up to 90MW of gas fuelled power, respectively from its interim power unit located at Gigawatt Park in Ressano Garcia, Mozambique.
The agreement which is said to be the second phase of the Ressano Garcia power project is expected to go online during the second quarter of 2013.
In 2012, the first phase initiated energy production. Aggreko along with its joint-venture partner Shanduka started with the supply of 110MW power to EDM and to South African utility Eskom.
Rupert Soames, Chief Executive, Aggreko, said, \"This new project will make Ressano Garcia the world\'s largest cross-border interim power plant, with over 232MW of gas-fuelled power generation. It underlines the immense potential of the Southern African Power Pool to be a real conduit of cooperation and development among the countries of Southern Africa. The fact that three national utilities are collaborating to support each other\'s energy requirements is testament to the benefit of working together for the common good.\"
Transmission of the power will be carried out over 1500km from Mozambique to Namibia, and also locally to EDM through the regional transmission infrastructure.
The total value of the project is expected to be around $200 million, including fuel costs. The project will be operating for a minimum period of two years with supply of natural gas from Matola Gas Company SA using their gas infrastructure at Ressano Garcia, while Aggreko generates power utilising a sub-concession deal with Gigawatt Mozambique SA.
