Norwegian renewable energy company Scatec has completed the sale of its 52.5% equity interest in the 40MW Mocuba solar power plant in Mozambique for $8.5m.

Scatec sold the solar power plant to South Africa-based operating power company Globeleq.

Globeleq is an independent power producer in Sub-Saharan Africa, with more than 2.1GW of power production capacity in operation or under construction.

The company is owned 70% by the UK’s development finance institution, British International Investment, and 30% by the Norwegian development finance institution, Norfund.

Scatec anticipates the transaction to generate net profits of around $4m on a consolidated basis and $3m on a proportionate basis.

Scatec CEO Terje Pilskog said: “We are pleased to have closed this transaction, which is in line with our strategy to optimise our portfolio including the divestment of smaller assets in non-focus markets.

“The transaction’s success will free up resources for our targeted markets and generate funds for fresh ventures in renewable energy.

“We are delighted to have completed a value-enhancing deal and have full confidence that Globeleq will be a good owner of the asset in the future.

“I would like to thank the Government of Mozambique, Electricidade de Moçambique and our team who worked on the project delivering electricity to the nation.”

Located in the Zambézia province of Mozambique, the Mocuba solar power plant was commissioned in August 2019.

The project has an annual production of around 75GWh and is backed by a 25-year power purchase agreement (PPA) with the state-owned utility EDM.

As part of the acquisition, Globeleq will be responsible for operations and maintenance, and asset management services for the power plant.

In 2017, IFC, a member of the World Bank Group, announced a $55m financing package to build Mocuba as the first utility-scale solar PV plant in Mozambique.

In 2019, Scatec and its partners have grid-connected and started commercial operation for the 40MW solar power plant in Mozambique.