Staff Reporter
JOHANNESBURG, (CAJ News) - THE signing of major agreements between Aggreko and power utilities in Mozambique and Namibia is poised to address ever-increasing demand for power in Southern Africa.

The United Kingdom-headquartered company has signed Tri-Party Power Purchase Agreements (TPPA) with Electricidade de Moçambique (EDM), the Mozambique power utility and NamPower, the Namibian power utility, to provide 122 MW of gas-fuelled power from the Aggreko interim power plant located at Gigawatt Park at Ressano Garcia, Mozambique.

The agreement follows the authorisation by EDM for the direct supply of power by Aggreko to NamPower and will see the installed capacity of 122 MW split between the two utilities with EDM utilising up to 32 MW and NamPower up to 90 MW, based on the specific needs of both utilities.

Rupert Soames, Chief Executive of Aggreko plc said the new project will make Ressano Garcia the world’s largest cross-border interim power plant, with over 232 MW of gas-fuelled power generation.

"It underlines the immense potential of the Southern African Power Pool (SAPP) to be a real conduit of cooperation and development among the countries of Southern Africa.

"The fact that three national utilities are collaborating to support each other’s energy requirements is testament to the benefit of working together for the common good," Rupert said.

Paulinus Shilamba, Managing Director, NamPower said the approach to securing an effective power supply for the people of Namibia is a great example of the spirit of Southern African cooperation.

Augusto Sousa Fernando, CEO of EDM, welcomed the second phase of the Aggreko interim power plant at Ressano Garcia, which will assist EDM and its partners in the SAPP to bridge the period until they implement permanent plants in Mozambique.

Aggreko built the facility at Ressano Garcia in 2012 as part of an ambitious project in which it became the first cross-border, interim Independent Power Provider to the Southern African Power Pool (SAPP). 

The new 122 MW plant is scheduled to go into production in the second quarter of 2013 and will supply power for a minimum of two years.

Natural gas to the project will be supplied by the Matola Gas Company SA through their gas infrastructure at Ressano Garcia and Aggreko will generate power utilising a sub-concession agreement with Gigawatt Mozambique SA.

The total value of the project is likely to be in excess of $200 million, including fuel costs.