Chimuara-Nacala power transmission project (phases II and III)

Chimuara-Nacala power transmission project (phases II and III)

We are delivering phases II and III of the Chimuara-Nacala power transmission project in Mozambique.

This landmark project is a partnership between Gridworks and the Mozambican electricity utility, Electricidade de Moçambique. It is the first privately financed transmission project in the country.   

It will strengthen and increase the reliability of the transmission infrastructure connecting central and northern regions of the country (between Chimuara, in Sofala province and Nampula and Nacala in Nampula province). 

The project infrastructure includes a 400kV transmission line from Alto Molócuè-Namialo (272 km), a 220kV transmission line from Namialo – Nampula (98 km) and a 220kV transmission line from Namialo – Nacala-à-Velha (90 km), with two new substations at Namialo and Nacala-à-Velha and the expansion of the Nampula substation. 

In numbers...

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The total value of the project is estimated to be over $400 million

Power tower

The project will see approximately 460km of new transmission lines and substations built

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The northern regions of Zambezia and Nacala, which the project will reach, have the lowest electricity access rates in the country (25% and 18% respectively)

Why we're investing

The Chimuara-Nacala project will help increase energy access, enable a clean energy transition, support economic development and shape the broader market.  

Energy access

Only half of Mozambique’s population has access to electricity. Adding 460km of new infrastructure will significantly increase the reliability of electricity in the northern regions of Zambezia and Nampula, which have the lowest electricity access rates in the country (at 25% and 18% respectively) 

Climate benefits

The project will enable the transmission of solar and hydropower to the northern region. For example, hydropower generated in the Zambezia region in the west of Mozambique currently only supplies southern Mozambique, as the southern and central regions are not connected – this project will enable the supply of renewable power to the north of the country.

Economic development

The northern areas of Mozambique, in particular the Nampula-Nacala area, have significant industrial demand. However, the required capacity of the transmission infrastructure far exceeds the transfer limit on the existing system. The project will help address this challenge.

Market shaping

This project will help to shape the market by demonstrating how private sector finance can be used for transmission, creating a precedent for a structure and regulatory model in Mozambique and more broadly on the continent.

“Transmission infrastructure is capital intensive and increasing available sources of finance for it is vital. Pools of private capital from development banks, infrastructure funds and pension funds support this nascent market so that African governments have access to the same funding models that have been used successfully in other markets in the past.” 

Chris Flavin

Head of Business Development
Gridworks

This project is crucial for bridging the energy gap between our Central and Northern regions, fostering economic development, and supporting our industrial growth. This project aligns with our National Energy Transition Strategy and underscores our commitment to leveraging Private Sector investment for critical infrastructure development. By improving the reliability and capacity of our grid, we are paving the way for a brighter, more sustainable future for Mozambique.” 

Eng. Marcelino Gildo Alberto

Former Chairman
EDM

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