Full meaning
African Union
Community of Sahel–Saharan States
Common Market for Eastern and Southern Africa
Economic Community of West African States
Foreign direct investment
Gross domestic product
Inclining block tariff(s)
International Monetary Fund
Independent power producer
Kilowatt
Kilowatt hour
Liquid petroleum gas
Megawatt
Pay as you go
Power purchase agreement
Private public partnership
Standard and Poors Global Ratings
Sub-Saharan Africa
Transmission and distribution
Time of use
West African Economic and Monetary Union
United Nations Industrial Development Organization
Value added tax
World Bank Regulatory Indicators for Sustainable Energy
Projection for 2030
2017/2018 reporting year
SSA average includes South Africa. Calculation for SSA average and country data: Total consumption (2016) / total population (2016).
SSA average: 18%
This includes diesel, kerosene and gasoline subsidies.
Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu
Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu
Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu
Energy Sector
Mozambique
Energy Sector
Investment Overview
At just over 3,000 MW, Mozambique had excess generating capacity of more than 1,000 MW when compared to the country’s peak demand in 2018. Even with an average operating capacity of 2,279 MW by mid-2018, the country had a comfortable surplus. This surplus combined with a national electrification rate below 30% results in a high annual per capita electricity consumption of 415 kWh, or about 50 kWh higher than the Sub-Saharan Africa average. Industrial use dominates sectoral consumption, accounting for more than 85% of the total electricity consumed.Peak demand is set to grow by about 900 MW to 2,750 MW in 2025, likely driven in part by the connection of nearly 5 million unelectrified households. The country is targeting universal electrification by 2030 which would require capacity to more than double to almost 6,500 MW. Electricity tariffs fall broadly in the mid-range of the region, and are generally favourable to medium- and high-voltage consumer blocks.
The prevailing laws and regulations permit private sector participation in the energy sector, yet the reform process has failed to keep pace with demand growth and technological development. Inappropriate tariff structures have also resulted in the national utility operating at a loss, a problem compounded by the regular need to purchase expensive power from a small number of IPPs or foreign sources.
The first utility-scale solar plant in Mozambique, the Mocuba 40 MW project, was inaugurated in April 2019. It is owned by a consortium of private investors while Electricidade de Moçambique (EdM), the national utility, has 25% shareholding. EdM revealed plans in 2019 to develop several small, grid-tied solar parks throughout the country. Each park will generate between 10 MW - 15 MW and the project is expected to have a combined output of up to 60 MW.
Structure
Mozambique has actively pursued energy sector reform for over two decades. Reform has included the privatisation of the national utility Electricidade de Moçambique (EdM) and the introduction of the Electricity Law, which provided elements of competition and opened the electricity sector to new entrants. This required the setting up of the regulator, Autoridade Reguladora de Energia (ARENE), and the creation of a fund for rural electrification, Fundo Nacional de Energia (FUNAE).
The Electricity Law passed in 1997 governs the licensing of power projects and related activities. Its aim was to open the energy sector to greater private involvement through concession contracts with the government and the execution of PPAs with national utility EdM. The law provides for projects related to the generation, transmission and distribution of electricity, as well as construction, operation and management of plants (excluding self-consumption) subject to a concession awarded through a competitive public tender.
The country’s first IPP project came online in 2015, paving the way for future negotiations and more standardised tendering processes in recent years. Since then several IPPs have emerged which operate under various contracts and utilise different sources, including coal and solar. In addition, private investment has been mobilised to support the country’s Temane Regional Electricity Project (TREP) which will enhance transmission and strengthen regional power integration.
IPPs, including Sasol, Gigawatt and Kuvaninga Energia covered 11% of generation in 2018. Total capacity generated by IPPs amounted to 325 MW.
Hidroelectrica de Cahora Bassa (HCB) (Cahora Bassa hydro power) is 82% government owned and covered approximately 69% of generation in 2018. Only about 400 MW is supplied to Electricidade de Moçambique (EdM), the national utility. The rest is exported.
EdM operates the remaining generation infrastructure, mainly hydro and diesel.
EdM operates the majority of transmission infrastructure. The transmission grid is subdivided into the northern, central and southern regions and transmits electricity at 220 kV and 110 kV.
Hidroelectrica de Cahora Bassa (HCB) operates the transmission grid that evacuates power from the hydro generation plant.
The Mozambique Transmission Company (MOTRACO) supplies power from South Africa to the Mozal aluminium smelter owned by BHP Billiton.
EdM operates interconnected and isolated distribution grids, while Fundo Nacional de Energia (FUNAE) (National Energy Fund), the de-facto rural electrification agency, is active in the development of isolated grids. Electricidade de Moçambique (EdM) is a vertically-integrated, government-owned electric utility responsible for generation, transmission and distribution of electricity. It is supervised by Ministério dos Recursos Minerais e Energie (MIREME) (the Ministry of Natural Resources and Energy).
Fundo Nacional de Energia (FUNAE) (National Energy Fund) promotes rural electrification and access to clean cooking. It serves as the de-facto rural electrification agency.
Hidroelectrica de Cahora Bassa (HCB) (Cahora Bassa hydro power) is the company that owns and operates the Cahora Bassa hydro project. The company is jointly owned by the Mozambican government and Redes Energéticas Nacionais, a Portuguese company. The Mozambican government owns a majority stake.
The Mozambique Transmission Company (MOTRACO) is a transmission company jointly owned by Eskom South Africa, EdM and the Eswatini Electricity Company serving the Mozal aluminium smelter. Ministério dos Recursos Minerais e Energia (MIREME) (Ministry of Natural Resources and Energy) is the ministry presiding over the energy sector. It is responsible for national energy planning and policy formulation. MIREME is represented in the provinces through the Provincial Directorates of Mineral Resources and Energy (DIPREME). The ministry consists of four directorates: Mines and Geology, Hydrocarbons and Fuels, Energy and Planning and Cooperation. Autoridade Reguladora de Energia (ARENE) (Energy Regulatory Authority) is the national energy regulator. It sets and approves energy tariffs (including off-grid), monitors competition and enforces the terms and conditions pertaining to licences and concession contracts. The Investment Promotion Agency (APIEX) provides incentives for investors, including provisions for capital movements.
Associação Moçambicana de Energias Renováveis (AMER) (The Mozambican Renewable Energy Association) is a non-profit organisation with the goal to promote renewable energy in Mozambique.
The Electricity Law passed in 1997 governs the licensing of power projects and related activities. Its aim was to open the energy sector to greater private involvement through concession contracts with the government and the execution of PPAs with national utility EdM. The law provides for projects related to the generation, transmission and distribution of electricity, as well as construction, operation and management of plants (excluding self-consumption) subject to a concession awarded through a competitive public tender.
The country’s first IPP project came online in 2015, paving the way for future negotiations and more standardised tendering processes in recent years. Since then several IPPs have emerged which operate under various contracts and utilise different sources, including coal and solar. In addition, private investment has been mobilised to support the country’s Temane Regional Electricity Project (TREP) which will enhance transmission and strengthen regional power integration.
Generation:
IPPs, including Sasol, Gigawatt and Kuvaninga Energia covered 11% of generation in 2018. Total capacity generated by IPPs amounted to 325 MW.
Hidroelectrica de Cahora Bassa (HCB) (Cahora Bassa hydro power) is 82% government owned and covered approximately 69% of generation in 2018. Only about 400 MW is supplied to Electricidade de Moçambique (EdM), the national utility. The rest is exported.
EdM operates the remaining generation infrastructure, mainly hydro and diesel.
Transmission:
EdM operates the majority of transmission infrastructure. The transmission grid is subdivided into the northern, central and southern regions and transmits electricity at 220 kV and 110 kV.
Hidroelectrica de Cahora Bassa (HCB) operates the transmission grid that evacuates power from the hydro generation plant.
The Mozambique Transmission Company (MOTRACO) supplies power from South Africa to the Mozal aluminium smelter owned by BHP Billiton.
Distribution:
EdM operates interconnected and isolated distribution grids, while Fundo Nacional de Energia (FUNAE) (National Energy Fund), the de-facto rural electrification agency, is active in the development of isolated grids. Electricidade de Moçambique (EdM) is a vertically-integrated, government-owned electric utility responsible for generation, transmission and distribution of electricity. It is supervised by Ministério dos Recursos Minerais e Energie (MIREME) (the Ministry of Natural Resources and Energy).
Fundo Nacional de Energia (FUNAE) (National Energy Fund) promotes rural electrification and access to clean cooking. It serves as the de-facto rural electrification agency.
Hidroelectrica de Cahora Bassa (HCB) (Cahora Bassa hydro power) is the company that owns and operates the Cahora Bassa hydro project. The company is jointly owned by the Mozambican government and Redes Energéticas Nacionais, a Portuguese company. The Mozambican government owns a majority stake.
The Mozambique Transmission Company (MOTRACO) is a transmission company jointly owned by Eskom South Africa, EdM and the Eswatini Electricity Company serving the Mozal aluminium smelter. Ministério dos Recursos Minerais e Energia (MIREME) (Ministry of Natural Resources and Energy) is the ministry presiding over the energy sector. It is responsible for national energy planning and policy formulation. MIREME is represented in the provinces through the Provincial Directorates of Mineral Resources and Energy (DIPREME). The ministry consists of four directorates: Mines and Geology, Hydrocarbons and Fuels, Energy and Planning and Cooperation. Autoridade Reguladora de Energia (ARENE) (Energy Regulatory Authority) is the national energy regulator. It sets and approves energy tariffs (including off-grid), monitors competition and enforces the terms and conditions pertaining to licences and concession contracts. The Investment Promotion Agency (APIEX) provides incentives for investors, including provisions for capital movements.
Associação Moçambicana de Energias Renováveis (AMER) (The Mozambican Renewable Energy Association) is a non-profit organisation with the goal to promote renewable energy in Mozambique.
Key Actors
Gridfinder Map
Transmission (OSM)
Distribution (predicted)
Electrification targets
Utility/distributor
Electricidade de Moçambique (EdM) is a vertically-integrated, government-owned electric utility responsible for generation, transmission and distribution of electricity. It is supervised by Ministério dos Recursos Minerais e Energie (MIREME) (the Ministry of Natural Resources and Energy).Fundo Nacional de Energia (FUNAE) (National Energy Fund) promotes rural electrification and access to clean cooking. It serves as the de-facto rural electrification agency.
Hidroelectrica de Cahora Bassa (HCB) (Cahora Bassa hydro power) is the company that owns and operates the Cahora Bassa hydro project. The company is jointly owned by the Mozambican government and Redes Energéticas Nacionais, a Portuguese company. The Mozambican government owns a majority stake.
The Mozambique Transmission Company (MOTRACO) is a transmission company jointly owned by Eskom South Africa, EdM and the Eswatini Electricity Company serving the Mozal aluminium smelter.
Ministry (Ministries)
Ministério dos Recursos Minerais e Energia (MIREME) (Ministry of Natural Resources and Energy) is the ministry presiding over the energy sector. It is responsible for national energy planning and policy formulation. MIREME is represented in the provinces through the Provincial Directorates of Mineral Resources and Energy (DIPREME). The ministry consists of four directorates: Mines and Geology, Hydrocarbons and Fuels, Energy and Planning and Cooperation.Regulator
Autoridade Reguladora de Energia (ARENE) (Energy Regulatory Authority) is the national energy regulator. It sets and approves energy tariffs (including off-grid), monitors competition and enforces the terms and conditions pertaining to licences and concession contracts.Others
The Investment Promotion Agency (APIEX) provides incentives for investors, including provisions for capital movements.Associação Moçambicana de Energias Renováveis (AMER) (The Mozambican Renewable Energy Association) is a non-profit organisation with the goal to promote renewable energy in Mozambique.
Tariffs
Tariff components
Consumption Charge (€/ kWh):
€0.09
Fixed Charge (€/month) (social class exempt):
Residential: €3.58
Agricultural: €3.58
General commercial: €3.58
High use LV customers: €8.35
Agricultural: €3.58
General commercial: €3.58
High use LV customers: €8.35
Demand charge (€/ kW/month) (No time period provided. Assuming monthly):
High use LV customers: €5.01
Consumption Charge (€/ kWh):
€0.05
Fixed Charge (€/month):
General MT: €39.21
Agriculture MT: €39.21
Agriculture MT: €39.21
Demand Charge (€/ kW) (No time period provided. Assuming monthly):
General MT: €5.86
Agriculture MT: €4.00
Agriculture MT: €4.00
Consumption Charge (€/ kWh):
€0.06
Fixed Charge (€/month) :
€39.21
Demand Charge (€/ kW) (No time period provided. Assuming monthly):
€7.08
Average retail tariff by consumption category
Average LV
9.4
Social
1.5
Residential (average of IBTs)
12.1
Agricultural (average of IBTs)
7.6
General Commercial (average of IBTs)
19.4
Major LV Consumers
6.5
Note
The Government of Mozambique ordered Edm in June 2020 to cut the social tariff by 50% and the general commercial and major LV tariffs by 10%. Tariffs presented here do not take into account these changes as they have not been implemented by the time of writing.
Average MV
4.6
General MV
5.6
Agricultural MV
3.5
Note
The Government of Mozambique ordered Edm in June 2020 to cut the general MV tariff by 10%. Tariffs presented here do not take into account these changes as they have not been implemented by the time of writing.
Average HV
5.5
Standard HV
5.5
Is the retail electricity tariff subject to periodic review?
NoAccording to Electricidade De Mozambique (EDM) which deal with the generation, transmission, distribution and sale of electricity, the company is “not financially viable. Current electricity tariffs do not cover the cost of supply.” With no regulatory body in place to establish thresholds for the tariffs, EDM negotiated directly with the Government. In 2019 a new regulatory authority, Autoridade Reguladora da Energia (ARENE) was created with the aim of having truly cost reflective tariffs within 3-5 years.
Quality standards
Instituto Nacional de Normalização e Qualidade (INNOQ) (The National Institute of Standardisation and Quality) promotes standardisation and quality of products and services. INNOQ has developed and implemented thirteen solar energy quality standards and various other electrical standards. A catalogue containing these and other standards are available from INNOQ’s website.
Electrification rates
% National electrification rate
2018
% Rural electrification rate
2018
% Urban electrification rate
2018
Total installed capacity (MW)
2030
6,471
2018
3,010.39
Peak demand (MW)
2025
2752
2018
1850
Electricity consumption by sector (MWh), 2017
Commercial & Public Services
383.79
Residential
1523.53
Industrial
12490.62
Per capita electricity consumption (kWh/person)
2016
415.74
SSA average (2016)
365.6
Electricity and petroleum product subsidies (% of GDP)
Electricity subsidies, 20179.23%
€1,022,041,200.00
Petroleum product subsidies, 2017
1.35%
€149,781,900.00