Solar Home System Market Size in Mozambique
Introduction
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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 29.6% of Mozambicans had access to the national grid electricity. This number is even lower for the rural population where only 4% 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 and electrification rate in the 11 Mozambican provinces (based on 2017 census data)[4]
Province | Population | Households[1] | Electrified population (%) | Monthly energy expenditure (USD) | Poverty rate (%) |
Maputo City | 1,120,869 | 224,175 | 100 | 15,9 | 11,8 |
Maputo | 1.968.889 | 393,774 | 78 | 15,9 | 11,8 |
Sofala | 2.259.248 | 451.842 | 34 | 5,4 | 49,6 |
Gaza | 1.422.458 | 284.517 | 30 | 6,3 | 43,6 |
Manica | 1.945.982 | 389.182 | 25 | 6,7 | 37,2 |
Nampula | 5.758.902 | 1.151.800 | 23 | 4,1 | 64,8 |
Cabo Delgado | 2.320.261 | 464.066 | 22 | 7,1 | 50 |
Niassa | 1.810.803 | 362.161 | 19 | 5,8 | 66,7 |
Inhambane | 1.488.685 | 297.745 | 15 | 6,6 | 34,5 |
Tete | 2.648.949 | 529.790 | 14 | 7,1 | 41,9 |
Zambezia | 5.164.726 | 1.032.961 | 10 | 4,1 | 61,8 |
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[5]. | 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
- Mozambique Solar Hub: All information about solar home system market in Mozambique
- Mozambique Off-grid Knowledge Hub: One-stop for all information related to renewable energy in Mozambique
Reference
- ↑ World Bank, “Mozambique | Data.”https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=MZ.
- ↑ Greenlight, “Mozambique – Off-Grid Energy Market Assessment.”
- ↑ 3.0 3.1 3.2 USAID, “Can Mozambican Household Afford SHS? Insights from a Local Survey.”
- ↑ USAID, “Mozambique Route-to-Market Tool.”
- ↑ UNPF, “Mozambique Fact Sheet for the Northern Province Humanitarian Crisis: Cabo Delgado - Nampula - Niass.”