Cape Town, Zambia and Mozambique drive new clean-energy projects

By: Chris Yelland, EE Business Intelligence

Renewable-energy investment continues to broaden across Southern Africa, with new municipal power-purchase agreements in Cape Town, private project finance in South Africa, and fresh utility-scale developments in Zambia and Mozambique.

Cape Town has signed its first two long-term agreements under a programme to procure up to 200 MW from independent producers. The 20-year PPAs cover 30 MW from Jempec at Atlantis and 40 MW from Make A Difference at Philippi. The City says electricity from the projects will cost 19% to 21% less than current Eskom rates, with future increases linked to CPI rather than Eskom tariff movements.

Elsewhere in South Africa, Yellow Door Energy has reached financial close with Nedbank CIB for the 49 MWp Lion Thorn Solar Park in Leeudoringstad, North West province. The project has long-term PPAs with cement producer PPC and electricity trader PowerX. Construction is due to begin in September 2026, with commissioning expected in 2028.

South African developer and IPP Sturdee Energy is meanwhile entering Zambia by acquiring the late-stage 200 MW Masaiti Wind Project in the Copperbelt. The project will connect to a nearby ZESCO 330 kV line, with ZESCO as the anchor customer and potential sales through traders, bilateral contracts and the Southern African Power Pool.

Sturdee also plans to integrate solar and battery storage to deliver a more consistent 24-hour renewable profile. In Mozambique, Canadian developer JCM Power has been selected to develop the 30 MW Manje solar project in Tete Province under the PROLER competitive renewable-energy procurement programme. JCM will finance, design, build, operate and maintain the plant.

These projects illustrate an increasingly diverse regional market, spanning municipal procurement, private PPAs, cross-border trading, and competitive public renewable-energy auctions.

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