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Aggreko Fast Tracks 122 MW

Two contracts provide additional gas-fired power to Southern African countries

Posted on March 18, 2013

Aggreko, the Scottish-based provider of interim power and temperature control solutions, has signed tri-party power purchase agreements (TPPA) with the state-owned power utility Electricidade de Mocambique (EDM) and Namibia's Nampower to produce 122 MW of gas-fired power at Gigawatt Park in Ressano Garcia, Mozambique. The additional power will be added to the 110 MW already being produced at the site.

Namibia, about 1500 km away, will receive 90 MW of the additional power while EDM will take 32 MW onto the local grid. Aggreko built the Ressano Garcia facility in 2012, making it the first cross-border, interim independent power provider to the Southern African Power Pool (SAPP), the company said. In the first 110-MW phase of the project, power was supplied to EDM and the South African power utility Eskom. SAPP, which has become one of the largest interconnected grids in the world, links the grids of nine countries in the southern African region.

The additional power is scheduled to be commissioned in the second quarter of this year at a cost of more than US$200 million. The agreement covers at least two years of power supply.

Natural gas will be supplied by the Matola Gas Company through its existing gas infrastructure at Ressano Garcia, and Aggreko will generate power utilizing a sub-concession agreement with Gigawatt Mozambique.

In another contract, Aggreko is to provide a 57 MW, fast-track bridging solution to Djibouti while longer-term power developments are being put in place. The project consists of a 5-MW package that will be operational within six weeks from the date of contract signing, with the balance of 52 MW to be commissioned and operational in May this year.