Mozambique is a net exporter of energy to countries in the Southern African Power Pool (SAPP) – South Africa being the largest importer. The government view energy exports as a key driver of the Mozambican economy, having passed a new electricity law that simplifies permitting and encourages IPPs activities.
EDM and Mozambique support the development of renewable energy projects, having launched public tenders for solar and wind projects, the country is also exploring battery storage solutions. The largest power generation plant in the country is the Cahora Bassa hydro dam, operated by the government owned Hidroeléctrica de Cahora Bassa (HCB).
The first Independent Power Projects (IPPs) in Mozambique came online in 2015. These projects have paved the way for future IPP negotiations and, more recently, the standardization of tendering documents. Given EDM's weak financial capabilities, future IPPs will continue to rely on development banks for financing.
Mozambique's domestic energy demand is increasing steadily and is expected to continue rising as the country industrializes. The Southern African Development Community (SADC) member countries are expected to have higher demand for power that could be met with Mozambican exports.
First, to ensure that Mozambique has reliable and cost-effective power generation capable of meeting its 2030 electrification goals. Second, to establish Mozambique as a regional power supplier of choice.
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OverviewLeading Sub-SectorsOpportunitiesTransmissionGenerationDistributionMozambique has the largest power generation potential of all Southern African countries. Power Africa estimatesthat it could generate 187 gigawatts of power from coal, hydro, gas, wind, and solar. Most of the power currently generated is from hydroelectric projects, however, natural gas, and renewable energy sources will have a significant impact i...See more on trade.govlugisagroup [PDF]
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HCB sells 65% of its existing generation to South Africa, and the remaining 35% is sold to the northern regions of Mozambique and to Zimbabwe. HCB''s operations are located on the
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