Mozambique has chosen a consortium led by TotalEnergies and Electricite de France for a $4.5 billion hydropower project, as the investment in clean energy continues to rise.
According to a government statement cited by Bloomberg on Friday, the project aims to construct the Mphanda Nkuwa dam, which will have a capacity of 1,500 megawatts, and an associated transmission line. The primary objective is to alleviate the power crisis in the region.
The consortium includes the participation of Japan’s Sumitomo alongside TotalEnergies and Electricite de France.
Situated on the Zambezi river, approximately 60 kilometers downstream of the existing Cahora Bassa hydroelectric dam, the Mphanda Nkuwa dam will have a capacity to generate 2,075 megawatts of power. More than half of this power is currently being sold to South Africa.
The government anticipates finalizing the project’s financial arrangements in 2024, with a target completion date of 2030. The partners will be required to invest between $500 million and $700 million.
According to the International Energy Agency, global investment in clean energy is projected to reach $1.7 trillion this year, surpassing expenditures on fossil fuels. Countries worldwide are increasingly focusing on clean energy to address potential energy shortages.
The World Energy Investment report from the Paris-based agency reveals that global energy investment is expected to reach $2.8 trillion in 2023, with over 60% allocated to clean technology, including renewables, electric vehicles, nuclear power, and heat pumps.
Fatih Birol, the executive director of the International Energy Agency, noted, “Clean energy is moving fast – faster than many people realize. This is clear in the investment trends, where clean technologies are pulling away from fossil fuels. For every dollar invested in fossil fuels, about $1.70 is now going into clean energy. Five years ago, this ratio was one to one.”
To meet the commitments established under the Paris climate agreement, the International Renewable Energy Agency emphasizes that global investment in energy transition technology must quadruple to $35 trillion by 2030.
