Difference between revisions of "Solar Home System Market Size in Mozambique"
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− | === | + | {{Back to Moz Solar Hub}} |
− | As of 2019, only | + | {{Back to Mozambique Portal}} |
− | A study in 2018 calculated the potential for SHS market to be '''4.4 million households and this mainly covers the market for SHS with single light and phone charger. A detailed breakdown is shown in the table below'''<ref> | + | {{Portuguese Version|Sistemas_Solares_Domésticos_em_Moçambique_:_Dimensão_do_Mercado}} |
+ | |||
+ | === Introduction === | ||
+ | [[File:SA3.jpg|alt=|right|300x300px]] | ||
+ | This article provides a snapshot of the SHS market in [[Mozambique- Country Information|Mozambique]] particularly the market size and is targeted at private sector, donor organisations, NGOs, Government bodies and other stakeholders who are interested in getting a deeper understanding of the SHS market. | ||
+ | |||
+ | In this article, the term SHS includes [[Global Tracking Framework for Measuring Energy Access#Access%20to%20Electricity|all Tier SHS]], including picoPV products (below 10 W). Tier 1 is defined as basic SHS with lights and/or radio and/or USB port for mobile charging. Tier 2 includes lights, phone charger, radio and TV. Tier 3+ includes big productive use appliances such as solar pumps, refrigerators. | ||
+ | |||
+ | ===SHS Market Size=== | ||
+ | As of 2019, only 30.6% of Mozambicans had access to the national grid electricity. This number is even lower for the rural population where only 4.5% have access to grid electricity, although 63% of the total population are living in rural areas<ref>World Bank, “Mozambique | Data.”https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=MZ.</ref>. Thus, the Mozambican energy sector presents an enormous opportunity for off-grid electrification using SHS and mini-grids. '''[[Energy Access in Mozambique|Read more about the energy access situation in Mozambique here.]]''' | ||
+ | |||
+ | A study in 2018 calculated the potential for SHS market to be '''4.4 million households and this mainly covers the market for SHS with single light and phone charger. A detailed breakdown is shown in the table below'''<ref name=":1">Greenlight. “Mozambique – Off-Grid Energy Market Assessment.” 2019. https://beyondthegrid.africa/wp-content/uploads/MOZ-Greenlight-Off-Grid-Energy-Market-Analysis.pdf.</ref> : | ||
{| class="wikitable" | {| class="wikitable" | ||
|'''Systems''' | |'''Systems''' | ||
|'''Potential market size (households)''' | |'''Potential market size (households)''' | ||
|- | |- | ||
− | |SHS with single light and phone charger | + | | SHS with single light and phone charger |
− | |4.4 million | + | | 4.4 million |
|- | |- | ||
− | |SHS with multiple lights, phone charger and radio | + | | SHS with multiple lights, phone charger and radio |
− | |3.5 million | + | | 3.5 million |
|- | |- | ||
− | |SHS with multiple light, phone charger, radio and TV | + | | SHS with multiple light, phone charger, radio and TV |
|645,000 | |645,000 | ||
|- | |- | ||
− | |SHS with multiple lights, phones charger, radio, TV and refrigerators | + | | SHS with multiple lights, phones charger, radio, TV and refrigerators |
|276,000 | |276,000 | ||
|} | |} | ||
− | A recent USAID study from 2020 estimates that '''824,000 households (i.e. one in every five households) could afford a SHS without any additional subsidy'''. These households spend on average USD 7.5 per month on lighting, which is also the average monthly instalment for Tier 1 SHS<ref name=":0">USAID | + | A recent USAID study from 2020 estimates that '''824,000 households (i.e. one in every five households) could afford a SHS without any additional subsidy'''. These households spend on average USD 7.5 per month on lighting, which is also the average monthly instalment for Tier 1 SHS<ref name=":0">USAID. “Can Mozambican Household Afford SHS? Insights from a Local Survey,” 2020. https://pdf.usaid.gov/pdf_docs/PA00WJJH.pdf</ref>. The three largest potential markets are in '''Nampula, Cabo Delgado and Manica''' provinces. The wealthiest households are in Maputo and Manica. Zambezia province is the poorest where only 8 % can afford SHS<ref name=":0" />. |
− | The table below provides an overview of the demographics | + | The table below provides an overview of the demographics, electrification rate and social infrastructures in the 11 Mozambican provinces (based on 2017 census data)<ref>USAID. “Mozambique Route-to-Market Tool,” 2020. https://dec.usaid.gov/dec/GetDoc.axdctID=ODVhZjk4NWQtM2YyMi00YjRmLTkxNjktZTcxMjM2NDBmY2Uy&pID=NTYw&attchmnt=VHJ1ZQ==&rID=NTU5NDcy.</ref><ref>USAID (2022). '''Mozambique route to market (RTM) tool.''' https://pdf.usaid.gov/pdf_docs/PA00XGZT.pdf</ref>. |
{| class="wikitable" | {| class="wikitable" | ||
|'''Province''' | |'''Province''' | ||
|'''Population''' | |'''Population''' | ||
− | |'''Households | + | |'''Households''' |
+ | |'''Area (SqKm)''' | ||
|'''Electrified population (%)''' | |'''Electrified population (%)''' | ||
|'''Monthly energy expenditure (USD)''' | |'''Monthly energy expenditure (USD)''' | ||
|'''Poverty rate (%)''' | |'''Poverty rate (%)''' | ||
+ | |'''Schools''' | ||
+ | |'''Health centers''' | ||
+ | |'''% of Mobile network coverage''' | ||
+ | |- | ||
+ | |'''Nampula''' | ||
+ | |5,758,902 | ||
+ | |1,151,800 | ||
+ | |77.953 | ||
+ | |23 | ||
+ | |4.1 | ||
+ | |64.8 | ||
+ | |244 | ||
+ | |200 | ||
+ | |75% | ||
|- | |- | ||
− | |''' | + | |'''Cabo Delgado''' |
− | |1 | + | |2,320,261 |
− | | | + | |464,066 |
− | | | + | |77,807 |
− | | | + | |22 |
− | | | + | |7.1 |
+ | |50 | ||
+ | |375 | ||
+ | |114 | ||
+ | |73% | ||
|- | |- | ||
− | |''' | + | |'''Manica''' |
− | |1. | + | |1,945,982 |
− | | | + | |389,182 |
− | | | + | |62.273 |
− | | | + | |25 |
− | | | + | |6.7 |
+ | |37.2 | ||
+ | |410 | ||
+ | |104 | ||
+ | |78% | ||
|- | |- | ||
|'''Sofala''' | |'''Sofala''' | ||
− | |2 | + | |2,259,248 |
− | |451 | + | |451,842 |
+ | |67,664 | ||
|34 | |34 | ||
− | |5 | + | |5.4 |
− | |49 | + | |49.6 |
+ | |75 | ||
+ | |232 | ||
+ | |58% | ||
|- | |- | ||
− | |''' | + | |'''Zambezia''' |
− | |1. | + | |5,164,726 |
− | | | + | |1,032,961 |
− | | | + | |102,884 |
− | | | + | |10 |
− | | | + | |4.1 |
+ | |61.8 | ||
+ | |1224 | ||
+ | |229 | ||
+ | |63% | ||
|- | |- | ||
− | |''' | + | |'''Niassa''' |
− | |1. | + | |1,810,803 |
− | | | + | |362,161 |
− | | | + | |122,342 |
− | | | + | |19 |
− | | | + | |5.8 |
+ | |66.7 | ||
+ | |110 | ||
+ | |160 | ||
+ | |68% | ||
|- | |- | ||
− | |''' | + | |'''Tete''' |
− | | | + | |2,648,949 |
− | | | + | |529,790 |
− | | | + | |99,299 |
− | | | + | |14 |
− | | | + | |7.1 |
+ | |41.9 | ||
+ | |71 | ||
+ | |129 | ||
+ | |73% | ||
|- | |- | ||
− | |''' | + | |'''Gaza''' |
− | | | + | |1,422,458 |
− | | | + | |284,517 |
− | | | + | |75,131 |
− | | | + | |30 |
− | | | + | |6.3 |
+ | |43.6 | ||
+ | |578 | ||
+ | |140 | ||
+ | |77% | ||
|- | |- | ||
− | |''' | + | |'''Maputo''' |
− | |1. | + | |1,968,889 |
− | | | + | |393,774 |
− | | | + | |22,981 |
− | | | + | |78 |
− | | | + | |15.9 |
+ | |11.8 | ||
+ | |357 | ||
+ | |111 | ||
+ | |46% | ||
|- | |- | ||
|'''Inhambane''' | |'''Inhambane''' | ||
− | |1 | + | |1,488,685 |
− | |297 | + | |297,745 |
+ | |68,351 | ||
|15 | |15 | ||
− | |6 | + | |6.6 |
− | |34 | + | |34.5 |
+ | |2 | ||
+ | |129 | ||
+ | |69% | ||
|- | |- | ||
− | |''' | + | |'''Maputo City''' |
− | | | + | |1,120,869 |
− | + | |224,175 | |
− | + | |331 | |
− | + | |100 | |
− | | | + | |15.9 |
− | | | + | |11.8 |
− | | | + | |0 |
− | | | + | |39 |
− | | | + | |100% |
− | | | ||
− | | | ||
− | | | ||
|} | |} | ||
The table below shows the distribution of potential SHS households across the different provinces; and challenges and opportunities for reaching these households (based on the 2019 SAEP consumer survey)*<ref name=":0" />. | The table below shows the distribution of potential SHS households across the different provinces; and challenges and opportunities for reaching these households (based on the 2019 SAEP consumer survey)*<ref name=":0" />. | ||
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|'''Opportunities''' | |'''Opportunities''' | ||
|'''Recommendations''' | |'''Recommendations''' | ||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
|- | |- | ||
| rowspan="3" |'''Nampula''' | | rowspan="3" |'''Nampula''' | ||
| rowspan="3" |300,000 | | rowspan="3" |300,000 | ||
− | | rowspan="3" |Humanitarian crisis has spread from Cabo Delgado to some part of Nampula<ref>UNPF | + | | rowspan="3" |Humanitarian crisis has spread from Cabo Delgado to some part of Nampula<ref>UNPF. “Mozambique Fact Sheet for the Northern Province Humanitarian Crisis: Cabo Delgado - Nampula - Niass,” 2021. https://reliefweb.int/sites/reliefweb.int/files/resources/unfpa_mozambique_fact_sheet_-_nothern_province_humanitarian_crisis_jan2021_0.pdf</ref>. |
|Highest awareness for SHS products | |Highest awareness for SHS products | ||
|Opportunity to expand SHS products in deeper areas of this province | |Opportunity to expand SHS products in deeper areas of this province | ||
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| rowspan="2" |'''Cabo Delgado''' | | rowspan="2" |'''Cabo Delgado''' | ||
| rowspan="2" |130,000 | | rowspan="2" |130,000 | ||
− | |Humanitarian crisis | + | |Humanitarian crisis |
− | |Highest ownership of SHS | + | |Highest ownership of SHS |
|Stay updated on the humanitarian crisis and how it develops. | |Stay updated on the humanitarian crisis and how it develops. | ||
Line 142: | Line 195: | ||
|No service providers in the immediate vicinity of the households | |No service providers in the immediate vicinity of the households | ||
|Highest access to mobile money access | |Highest access to mobile money access | ||
− | |Increasing the number of sales agents in this province | + | |Increasing the number of sales agents in this province |
|- | |- | ||
| rowspan="2" |'''Manica''' | | rowspan="2" |'''Manica''' | ||
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|No service providers in the immediate vicinity of the households | |No service providers in the immediate vicinity of the households | ||
|Wealthiest households are in this province | |Wealthiest households are in this province | ||
− | |Increasing the number of sales agents in this province | + | | Increasing the number of sales agents in this province |
|- | |- | ||
|Low ownerships of SHS | |Low ownerships of SHS | ||
Line 168: | Line 221: | ||
|High risk of default | |High risk of default | ||
| | | | ||
− | |Offer lower Tier SHS | + | |Offer lower Tier SHS |
|- | |- | ||
|Low affordability of the households | |Low affordability of the households | ||
| | | | ||
− | |Subsidies from donor to target these regions are helpful | + | |Subsidies from donor to target these regions are helpful |
|- | |- | ||
|Low access to mobile money | |Low access to mobile money | ||
| | | | ||
− | |Explore other informal micro financing | + | |Explore other informal micro financing<ref name=":1" /> |
|- | |- | ||
| rowspan="3" |'''Zambezia''' | | rowspan="3" |'''Zambezia''' | ||
− | | rowspan="3" |76,000 | + | | rowspan="3" | 76,000 |
− | |High risk of default | + | |High risk of default |
|High income stability | |High income stability | ||
− | |Offer lower Tier SHS | + | |Offer lower Tier SHS |
|- | |- | ||
|Low ownership of SHS | |Low ownership of SHS | ||
Line 205: | Line 258: | ||
| rowspan="2" |17,000 | | rowspan="2" |17,000 | ||
|Perception of solar is least positive | |Perception of solar is least positive | ||
− | |Highest ownership | + | | Highest ownership |
|Awareness and marketing campaign needed | |Awareness and marketing campaign needed | ||
|- | |- | ||
Line 213: | Line 266: | ||
|- | |- | ||
| rowspan="3" |'''Inhambane''' | | rowspan="3" |'''Inhambane''' | ||
− | | rowspan="3" |13,000 | + | | rowspan="3" | 13,000 |
|High risk of default | |High risk of default | ||
| | | | ||
Line 227: | Line 280: | ||
|} | |} | ||
− | === Reference === | + | ===Further Information === |
+ | *'''[[Energy Access in Mozambique]]''' | ||
+ | *[[Solar Home System Market Landscape in Mozambique|'''Solar Home System Market Landscape in Mozambique''']] | ||
+ | *[[Solar Home System Consumer Insights in Mozambique|'''Solar Home System Consumer Insights in Mozambique''']] | ||
+ | *[[Solar Home System Challenges for the Private Sector in Mozambique|'''Solar Home System Challenges for the Private Sector in Mozambique''']] | ||
+ | ===Reference=== | ||
<references /> | <references /> | ||
[[Category:Mozambique]] | [[Category:Mozambique]] | ||
[[Category:Solar Home Systems (SHS)]] | [[Category:Solar Home Systems (SHS)]] | ||
[[Category:Renewable Energy]] | [[Category:Renewable Energy]] |
Latest revision as of 08:53, 13 September 2022
Introduction
This article provides a snapshot of the SHS market in Mozambique particularly the market size and is targeted at private sector, donor organisations, NGOs, Government bodies and other stakeholders who are interested in getting a deeper understanding of the SHS market.
In this article, the term SHS includes all Tier SHS, including picoPV products (below 10 W). Tier 1 is defined as basic SHS with lights and/or radio and/or USB port for mobile charging. Tier 2 includes lights, phone charger, radio and TV. Tier 3+ includes big productive use appliances such as solar pumps, refrigerators.
SHS Market Size
As of 2019, only 30.6% of Mozambicans had access to the national grid electricity. This number is even lower for the rural population where only 4.5% have access to grid electricity, although 63% of the total population are living in rural areas[1]. Thus, the Mozambican energy sector presents an enormous opportunity for off-grid electrification using SHS and mini-grids. Read more about the energy access situation in Mozambique here.
A study in 2018 calculated the potential for SHS market to be 4.4 million households and this mainly covers the market for SHS with single light and phone charger. A detailed breakdown is shown in the table below[2] :
Systems | Potential market size (households) |
SHS with single light and phone charger | 4.4 million |
SHS with multiple lights, phone charger and radio | 3.5 million |
SHS with multiple light, phone charger, radio and TV | 645,000 |
SHS with multiple lights, phones charger, radio, TV and refrigerators | 276,000 |
A recent USAID study from 2020 estimates that 824,000 households (i.e. one in every five households) could afford a SHS without any additional subsidy. These households spend on average USD 7.5 per month on lighting, which is also the average monthly instalment for Tier 1 SHS[3]. The three largest potential markets are in Nampula, Cabo Delgado and Manica provinces. The wealthiest households are in Maputo and Manica. Zambezia province is the poorest where only 8 % can afford SHS[3].
The table below provides an overview of the demographics, electrification rate and social infrastructures in the 11 Mozambican provinces (based on 2017 census data)[4][5].
Province | Population | Households | Area (SqKm) | Electrified population (%) | Monthly energy expenditure (USD) | Poverty rate (%) | Schools | Health centers | % of Mobile network coverage |
Nampula | 5,758,902 | 1,151,800 | 77.953 | 23 | 4.1 | 64.8 | 244 | 200 | 75% |
Cabo Delgado | 2,320,261 | 464,066 | 77,807 | 22 | 7.1 | 50 | 375 | 114 | 73% |
Manica | 1,945,982 | 389,182 | 62.273 | 25 | 6.7 | 37.2 | 410 | 104 | 78% |
Sofala | 2,259,248 | 451,842 | 67,664 | 34 | 5.4 | 49.6 | 75 | 232 | 58% |
Zambezia | 5,164,726 | 1,032,961 | 102,884 | 10 | 4.1 | 61.8 | 1224 | 229 | 63% |
Niassa | 1,810,803 | 362,161 | 122,342 | 19 | 5.8 | 66.7 | 110 | 160 | 68% |
Tete | 2,648,949 | 529,790 | 99,299 | 14 | 7.1 | 41.9 | 71 | 129 | 73% |
Gaza | 1,422,458 | 284,517 | 75,131 | 30 | 6.3 | 43.6 | 578 | 140 | 77% |
Maputo | 1,968,889 | 393,774 | 22,981 | 78 | 15.9 | 11.8 | 357 | 111 | 46% |
Inhambane | 1,488,685 | 297,745 | 68,351 | 15 | 6.6 | 34.5 | 2 | 129 | 69% |
Maputo City | 1,120,869 | 224,175 | 331 | 100 | 15.9 | 11.8 | 0 | 39 | 100% |
The table below shows the distribution of potential SHS households across the different provinces; and challenges and opportunities for reaching these households (based on the 2019 SAEP consumer survey)*[3].
Provinces | Potential SHS market (households) | Challenges | Opportunities | Recommendations |
Nampula | 300,000 | Humanitarian crisis has spread from Cabo Delgado to some part of Nampula[6]. | Highest awareness for SHS products | Opportunity to expand SHS products in deeper areas of this province |
Highest ownership of SHS | Private sector can collaborate with humanitarian agencies to meet the energy needs of the displaced population in temporary settlements. | |||
Good perception of solar among households | ||||
Cabo Delgado | 130,000 | Humanitarian crisis | Highest ownership of SHS | Stay updated on the humanitarian crisis and how it develops.
Explore safer districts in Cabo Delgado for SHS distribution |
No service providers in the immediate vicinity of the households | Highest access to mobile money access | Increasing the number of sales agents in this province | ||
Manica | 101,000 | No service providers in the immediate vicinity of the households | Wealthiest households are in this province | Increasing the number of sales agents in this province |
Low ownerships of SHS | Willingness to pay for SHS is high | Awareness and marketing activities needed | ||
Sofala | 80,000 | Low affordability of the households | Highest awareness of SHS products | Offer lower Tier SHS that match the household’s ability to pay |
Subsidies from donor to target these regions are helpful | ||||
Tete | 78,000 | High risk of default | Offer lower Tier SHS | |
Low affordability of the households | Subsidies from donor to target these regions are helpful | |||
Low access to mobile money | Explore other informal micro financing[2] | |||
Zambezia | 76,000 | High risk of default | High income stability | Offer lower Tier SHS |
Low ownership of SHS | Subsidies from donor to target these regions are helpful | |||
Poorest households | ||||
Gaza | 38,000 | Low affordability of households | Offer lower Tier SHS | |
Subsidies from donor to target these regions are helpful | ||||
Maputo | 17,000 | Perception of solar is least positive | Highest ownership | Awareness and marketing campaign needed |
Highest access to mobile money | ||||
Inhambane | 13,000 | High risk of default | ||
Low affordability | Offer lower range of SHS and subsidies from donor programmes to target these regions are helpful | |||
Low access to mobile money | Explore other informal micro financing options |
Further Information
- Energy Access in Mozambique
- Solar Home System Market Landscape in Mozambique
- Solar Home System Consumer Insights in Mozambique
- Solar Home System Challenges for the Private Sector in Mozambique
Reference
- ↑ World Bank, “Mozambique | Data.”https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=MZ.
- ↑ 2.0 2.1 Greenlight. “Mozambique – Off-Grid Energy Market Assessment.” 2019. https://beyondthegrid.africa/wp-content/uploads/MOZ-Greenlight-Off-Grid-Energy-Market-Analysis.pdf.
- ↑ 3.0 3.1 3.2 USAID. “Can Mozambican Household Afford SHS? Insights from a Local Survey,” 2020. https://pdf.usaid.gov/pdf_docs/PA00WJJH.pdf
- ↑ USAID. “Mozambique Route-to-Market Tool,” 2020. https://dec.usaid.gov/dec/GetDoc.axdctID=ODVhZjk4NWQtM2YyMi00YjRmLTkxNjktZTcxMjM2NDBmY2Uy&pID=NTYw&attchmnt=VHJ1ZQ==&rID=NTU5NDcy.
- ↑ USAID (2022). Mozambique route to market (RTM) tool. https://pdf.usaid.gov/pdf_docs/PA00XGZT.pdf
- ↑ UNPF. “Mozambique Fact Sheet for the Northern Province Humanitarian Crisis: Cabo Delgado - Nampula - Niass,” 2021. https://reliefweb.int/sites/reliefweb.int/files/resources/unfpa_mozambique_fact_sheet_-_nothern_province_humanitarian_crisis_jan2021_0.pdf