Globeleq, one of the leading independent power producers, is negotiating a revised financing package with investors and development lenders for its $660 million Temane gas-fired power project in Mozambique, as the company works to contain rising costs and recover from construction delays.

The London-based independent power producer expects to finalize the restructuring by year-end, according to its Mozambique management.

The discussions involve project partners, shareholders and lenders, including the International Finance Corp., the OPEC Fund for International Development and the U.S. International Development Finance Corp.

Globeleq’s Mozambique Managing Director, Samir Sale, said severe weather and political violence had disrupted construction, pushed up costs and forced a revision of the project’s financing arrangements.

Financing under pressure

Located in Inhambane province, the 450-megawatt Temane power plant is central to Mozambique’s plans to develop a domestic gas and electricity hub while expanding access to reliable power.

The project, which will use natural gas from Sasol’s fields in Mozambique, is now expected to become fully operational in 2028, about three years behind its original schedule.

The financing overhaul follows additional government measures agreed in September to support the project, including tariff adjustments.

Authorities have not disclosed the full details of the arrangements, but the changes are intended to strengthen the project’s financial position as Globeleq works toward completing construction.

Expansion remains possible

Sale said Globeleq would consider adding another 450 megawatts of generation capacity through a second phase once the initial plant is operational.

The proposed expansion would double the facility’s planned capacity and potentially strengthen Mozambique’s position as a regional electricity supplier, although the company has not announced a construction timetable or financing commitment for the additional capacity.

Temane is part of a broader effort to develop Mozambique’s substantial natural gas resources into domestic electricity generation.

The project also carries significance for the country’s industrial development, as additional generating capacity could support businesses, reduce electricity supply constraints and create opportunities for greater investment in energy-intensive industries.

Globeleq expands African portfolio

Globeleq is jointly owned by British International Investment, which holds a 70% stake, and Norway’s Norfund, which owns the remaining 30%. British International Investment took control of the company in 2015. Since then, Globeleq has expanded its portfolio, adding nine assets, eight of which are renewable energy projects.

Founded in 2002, the company develops, owns and operates power generation assets across Africa. Its operations and construction portfolio spans seven countries: Côte d’Ivoire, Cameroon, South Africa, Mozambique, Tanzania, Kenya and Egypt, with interests in conventional power generation and renewable energy.

Betting on cleaner energy

Globeleq has reported a portfolio of 2,178 megawatts of power assets in operation and construction, including 520 megawatts of renewable capacity. The company is also pursuing additional generation projects as African governments seek to close electricity supply gaps while diversifying their energy mix.

The company’s wider development pipeline includes 665 megawatts of capacity under construction and more than 2,000 megawatts in development, according to its corporate figures. Its investment strategy combines conventional generation with renewable energy, positioning the Temane project as a major component of its Mozambique operations.