Abstract
This study aimed to analyse the financial feasibility of a solar power plant in Zambézia, Pebane District. The analysis was based on the FINPLAN Tool (Model for Financial Analysis of Electric Sector Expansion). The results suggest that the project is feasible, the NPV is MZN125 Millions and the IRR is 15% (greater than the discount rate of 10%). The sensitivity analysis suggests that the project is not very sensitive to changes in prices and exchange rates, showing that major changes in variables are needed to jeopardize the viability of the project. However, more attention is needed for O&M costs and climate risks since Pebane is somehow prone to climate shocks due to its close location to the coastal line.