The African Development Bank (AfDB) has approved a US$54 million loan for a 120 MW onshore wind farm to be located 50 km west of the capital, Maputo, Mozambique.

The Bank’s loan, which includes US$12 million from the Sustainable Energy Fund for Africa (SEFA), is in addition to financing expected from the International Finance Corporation (IFC), the U.S. International Development Finance Corporation (DFC), the Emerging Africa and Asia Infrastructure Fund (EAAIF) and the Private Infrastructure Development Group’s Technical Assistance. The total project cost is estimated at US$ 224.5 million. Mozambique’s national electricity utility, EDM, will be the sole off-taker from the wind farm, under a 25-year power purchase agreement.

The wind farm will be Mozambique’s first utility-scale wind power project. It is expected to generate 331.6 GWh annually, supplying affordable, reliable, and clean energy to both local consumers and regional markets, diversifying Mozambique's energy mix, and improving access to electricity.