The Southern African Development Community and Mozambique receive hydroelectric power from HCB, the largest Independent Power Producer (IPP) in Southern Africa (SADC).
The package includes up to €25 million from the Africa Growing Together Fund and up to €100 million from the African Development Bank.
The renovation will increase the plant’s lifespan by at least 25 years, increase energy delivery dependability, decrease outages, and allow the firm to fulfill its contractual commitments to its off-takers as well as strengthen regional integration of the SADC electrical sector. Additionally, it will guarantee the Community’s long-term energy security, particularly that of South Africa, Mozambique, and Zimbabwe.
The Vice President of the African Development Bank’s Power, Energy, Climate Change and Green Growth Complex, Kevin Kariuki, said: “We are delighted to support the Vital Capex program, given HCB’s central role in the Southern African Power Pool. Additionally, HCB’s increased capacity, enhanced reliability, and ability to provide ancillary services will facilitate greater integration of variable renewable energy sources such as solar PV and wind in the wider region.”
Also commenting, the Bank’s Director for Energy Financial Solutions, Policy & Regulations, Wale Shonibare, said: “the Bank’s support to HCB is well aligned with its vision of integrating African electricity markets to promote the supply of affordable and reliable electricity to consumers in the region.”
