Why is Mozambique a major energy exporter?

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.

When did independent power projects start in Mozambique?

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.

Will gas-based generation increase in Mozambique in 2025?

According to BMI Research, gas-based generation is expected to increase by 18.1% annually through 2025. Mozambique’s first utility-scale solar power plant, a photovoltaic plant with a capacity of 40MW, was commissioned in Zambezia Province in 2019.

What is EDM doing in Mozambique?

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).

Why is Mozambique partnering with EDF?

This consortium is being led by French company EDF. Mozambique has frequent power shortages mainly due to extreme weather events, forcing EDM to resort to expensive emergency power solutions. This creates another opportunity for U.S. companies providing emergency and backup generation solutions.

Will Mozambique-Zambia interconnector help the South African Development Community?

The Southern African Development Community (SADC) member countries are expected to have higher demand for power that could be met with Mozambican exports. The Mozambique-Zambia Interconnector will link the Mozambican and Zambian grids with two 400KV high-voltage alternating current (HVAC) lines at an approximate cost of $313 million.