Total estimated value of the project
Of new transmission lines and substations will be built
LTEC, which stands for Linha de Transporte de Energia Chimuara-Nacala, 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.
Around 60% 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) and will also unlock around 600MW of power generation capacity. It is also necessary for the development of the 400kV network to the north, enabling Mozambique’s interconnection with Tanzania.
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.
The northern areas of Mozambique, in particular the Nacala Economic Zone, 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.
“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.”
“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.”
Gridworks makes equity investments in transmission, distribution and distributed energy utilities in Africa.
