Mozambique: On-grid And Off-grid Solar Light

Mozambique is emerging with its vast solar potential to achieve a win-win situation in energy development by introducing a renewable energy auction scheme and promoting off-grid renewables. This article will take an in-depth look at Mozambique's energy situation, focusing on its dual strategies of on-grid and off-grid.

Mozambique's solar potential

Mozambique, located in southern Africa, has huge solar energy resources. Although only 60 megawatts of solar power will be installed in 2022, the Mozambican government is actively promoting the spread of clean electricity. Mozambique has a huge potential for renewable energy, of which about 23 GW is derived from solar energy. Despite economic challenges, inflation, the global pandemic and international conflicts, Mozambique's interest in renewable energy continues to grow, both in the on-grid and off-grid sectors.

Bright spots in the energy outlook

Over the past 20 years, Mozambique has maintained solid economic growth and promoted the development of the energy sector through a series of policies and reform measures. The Electricity Act 1997 created opportunities for private sector involvement, allowing the establishment of power purchase agreements (PPAs).

Recent reforms have further improved Mozambique's renewable energy environment. Amendments to the Electricity Act 2022 put a special emphasis on renewable energy, while new off-grid regulations are also being introduced. The power Infrastructure Master Plan for 2018-2043 aims to generate 50% of energy from renewable sources by 2043. Currently, under this new program, solar projects with a total capacity of 125 MW are being developed, of which 60 MW has already been built. Most of these projects are currently under the public-private Partnership (PPP) model, with close collaboration and negotiation. More projects will break ground by 2022 and 2023, and power purchase agreements have been signed for some projects.

The emergence of the bidding plan

The Mozambican government launched the Renewable Energy Tender Program (PROLER) in 2020, with the support of the European Union. The program ensures efficient development of renewable energy projects in Mozambique through a transparent tendering process. The first tender project, the Dondo Solar Power plant, was won by independent power producer Total Eren (now acquired by Total Energies) at a price of $52.45 per MWH. The project will build a 40 MW photovoltaic solar power plant in the Dondo region, which will supply electricity to the Mozambican Electricity Company, and is expected to be completed by the end of 2023. The PROLER program encourages private sector investment in renewable energy in Mozambique, and a transparent bidding process and favorable terms have reduced electricity prices.

Challenges and Opportunities: Off-grid solutions

Despite progress in the field of renewable energy, Mozambique still faces huge challenges. About 65 per cent of the population lives in rural areas, while less than 6 per cent have access to electricity. The Mozambican government has set an ambitious goal of achieving universal access to energy by 2030, but achieving this goal will require increasing energy capacity to nearly 6,500 megawatts.

However, off-grid solar solutions offer an opportunity to address this problem. In 2021, Mozambique enacted off-grid regulations to encourage access to energy through, for example, microgrids and solar home systems. In the second quarter of this year, ARENE, the power regulator, further developed microgrid-specific regulations, laying a solid foundation for off-grid energy development in Mozambique.

Look to the future

Although Mozambique faces a number of challenges, its efforts and progress in the field of renewable energy cannot be ignored. Through both on-grid and off-grid strategies, Mozambique has organically integrated access to energy, economic development and sustainability. In the future, with the influx of more investment and innovation, Mozambique will make greater achievements in the field of renewable energy and take a solid step towards a clean energy future.