AfDB Approves $150 Million Floating Solar Plant at Cahora Bassa

The African Development Bank has approved $150 million in financing for a floating solar plant on Mozambique’s Cahora Bassa reservoir, marking one of the largest floating photovoltaic transactions on the continent. The project will be implemented by Electricidade de Moçambique and is designed to integrate solar generation directly with the existing Cahora Bassa hydropower system. The floating configuration enables deployment on the reservoir surface, avoiding land constraints while complementing hydroelectric output.

The investment comes as Mozambique seeks to diversify its energy mix following a decline in hydropower generation, with output falling significantly due to drought conditions in the Zambezi basin. The hybrid solar-hydro model is intended to improve system resilience, stabilise generation and reduce exposure to climate variability.

The project is expected to deliver an initial 100 MW of solar capacity, with potential expansion to 200 MW, alongside battery energy storage to support grid stability and dispatchability. Construction is anticipated to begin in 2026, with commissioning targeted for 2028. Total project costs are estimated at approximately $150 million, with the African Development Bank acting as lead financier. Additional support is expected from development partners including the World Bank, European Union and climate finance institutions, reflecting a blended financing structure typical of large-scale renewable infrastructure in frontier markets.

The project positions Mozambique at the forefront of floating solar deployment in Africa, leveraging existing hydro infrastructure to accelerate renewable capacity additions. It also strengthens the country’s role within the Southern African Power Pool, where demand for flexible and diversified generation continues to grow. From a financing perspective, the transaction highlights increasing deployment of climate-aligned capital into hybrid renewable assets, combining solar generation with existing baseload infrastructure to improve reliability and optimise asset utilisation.