Energy Access Programmes in Mozambique

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This chapter presents an overview of the programmes that aim to improve energy access and develop the energy sector.

The programmes focus on the following energy technologies and energy use:

• Solar Home Systems (SHS)
• Improved Cookstoves (ICS)
• Productive Use of Energy (PUE)
• Mini-grids/Nano-grids
• On-grid Electrification

To know more about the international development organisations active in Mozambique, click here.

To know more about the funds created to support these programmes, click here.

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EnDev – Energising Development

Technology focus: ICS, SHS, PUE, On-grid Electrification

Duration: 2005 to 2024

Energising Development programme (EnDev) is a multi-donor programme financed by the BMZ, the Netherlands Ministry of Foreign Affairs (DGIS), Norwegian Agency for Development Cooperation (NORAD) and the Swiss Agency for Development and Cooperation (SDC). It is implemented jointly by GIZ and Netherlands Enterprise Agency (RVO.nl). The programme works towards improving access to modern energy services in more than 20 countries across Africa, Asia and Latin America. EnDev and GBE supported the establishment of the RBF fund: FASER (Fondo de Acesso sustentável as energias renováveis em Moçambique, Fund for Sustainable Access to Renewable Energies and Efficient Technologies).

Since 2006, EnDev Mozambique has provided access sustainable energy access to over one million people. EnDev tackles energy poverty with a market-based approach to serve people in Mozambique with sustainable access to modern energy services via solar home systems, pico photovoltaic systems and improved cookstoves. In the area of grid densification. EnDev Mozambique is working with the national state-owned electricity utility EdM to provide access to the electricity grid for disadvantaged households.

For more information about EnDev in Mozambique visit:

https://endev.info/countries/mozambique/

https://www.giz.de/en/worldwide/40417.html

GBE – Green People’s Energy Mozambique

Technology focus: SHS, ICS, PUE

Duration: 2018 to 2022.

The Green People’s Energy Programme (in German: Grüne Bürgerenergie, GBE) is commissioned by the German Federal Ministry for Cooperation and Development (BMZ) and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). The programme’s objective is to improve access to energy in rural areas in selected African countries with a special focus on decentralised renewable energy and participation of local municipalities, cooperatives and local companies.

The activities include promotion of productive use of energy for income generation; encouraging private sector to improve the quality of their services; advising political decision-makers on better integration of decentralised renewable energy; and supporting the use of decentralised energy in social institutions in Mozambique. Furthermore, the programme will also support training institutions to expand the courses offered on renewable energy and capacitate employees of current and potential companies in the markets for solar home systems and improved cookstoves.

Jointly with Energising Development (EnDev), GBE supported the establishment of a results-based financing (RBF) fund: FASER (Fondo de Acesso sustentável as energias renováveis em Moçambique, Fund for Sustainable Access to Renewable Energies and Efficient Technologies).

For more information on Green People’s Energy for Africa in Mozambique visit:

https://www.giz.de/en/worldwide/77417.html

https://gruene-buergerenergie.org/en/countries/mozambique/

GET.invest

Technology focus: On-grid electrification, mini-grids, SHS, PUE, ICS

Duration: Launched in early 2019

GET.invest is a joint programme between the European development organisations (from the European Union, Germany, Sweden, the Netherlands, and Austria) which mobilises investments in renewable energy in sub-Saharan African countries. Since 2019, the programme has been operating a country window in Mozambique funded by the European Union and Germany, implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). GET.invest Mozambique is part of PROMOVE ENERGIA – a comprehensive strategy between the EU and the Government of Mozambique to provide households and businesses in rural areas with access to sustainable and affordable energy.

The support mechanisms offered by GET.invest cover country briefs to identify market opportunities, advisory services through their Finance Catalyst team, and organising networking events to stimulate cooperation between stakeholders and new business opportunities.

To know more about GET.invest’s activities in Mozambique, visit: https://www.get-invest.eu/about/country-windows/mozambique/

GET.transform

Technology focus: mini-grids

Duration:

Within the off-grid segment, GET.transform’s activities in Mozambique centre around the Energy Regulatory Authority (ARENE), aiming to improve the investment environment for mini-grid investments in the country. After the technical support to develop the general regulatory framework, GET.transform supported arene in developing specific sub-regulation packages for mini-grids in line with the provision of the new electricity law of July 2022. GET.transform provided support to MIREME for the revision of this law. Currently, with the overarching mini-grid regulation and its sub-regulation packages having been approved, GET.transform develops the (first and only) national Mini-Grid Tendering Mechanism for the procurement of mini-grid processes. Now underway in its phase 1, the mechanism being developed will be piloted in the upcoming phase 2. GET.transform will accompany and support ARENE in the implementation and application of the new process and contribute to the sustainable scaling of off-grid electrification in the country.

To know more about GET.transform’s activities in Mozambique, visit: https://www.get-transform.eu/services/africa/mozambique/

BGFA – Beyond the Grid Fund for Africa

Technology focus: Solar Mini-grid, SHS and PUE

Duration: 2019 to 2024

Beyond the Grid Fund for Africa is an initiative from the Government of Sweden and has as an objective to promote access to clean, affordable and reliable off-grid energy for millions of Africans in rural areas. Apart from Mozambique, this project is running in Burkina Faso, Liberia, Uganda and Zambia. It is funded by the KfW Development bank, U.S. Government-Led Partnership Power Africa, Ministry of Foreign Affairs of Denmark, and Swedish International Development Cooperation Agency (Sida). It is being managed and implemented by the Nordic Environment Finance Corporation (NEFCO) and the Renewable Energy and Energy Efficiency Partnership (REEEP).

The first call for proposals was launched on autumn 2020 in cooperation with the Mozambican Energy Fund, FUNAE. The call for proposals invited off-grid energy service providers to compete for a total funding of EUR 6.7 million to be paid over 4 years for standalone or mini-grid projects. From the budget set for the country programme, EUR 0.3 million are to be allocated to productive use of energy such as connectivity, solar pumping, and agricultural value chains.

For more information about BGFA visit their homepage at: https://beyondthegrid.africa/

BRILHO

Technology focus: Mini-grid, SHS, PUE, ICS

Duration: 2019 to 2024

The BRILHO Programme is financed by the Foreign, Commonwealth & Development Office (FCDO) of the United Kingdom. This programme adopts a market-based approach for providing access to energy to off-grid rural Mozambican population. It supports two funding mechanisms: catalytic grants and results-based financing (RBF).

This programme is being implemented by SNV Netherlands Development Organisation.

For details about the BRILHO program visit:

https://brilhomoz.com/

https://snv.org/project/brilho-energy-africa-programme

GET FiT Mozambique

Technology focus: On-grid electrification

Duration: Implementation 2020

The Global Energy Transfer Feed in Tariff Programmme (GET FiT) is funded by the KfW and the BMZ. It aims to accelerate small renewable energy generation by offering technical assistance, financial risk mitigation, and renewable grid integration support. The programme has already been completed in Uganda and is currently pursuing to replicate their positive results in Mozambique.

GET FiT Mozambique was the result of a pre-feasibility study funded by the Government of the United Kingdom in 2015. This study highlighted the large potential to involve Independent Power Producers in the renewable energy market in Mozambique. After these conclusions, the GET FiT Programme was signed in September 2019 to promote investments in photovoltaic systems in three reverse auction rounds. The total financing amount is EUR 25 million. Mozambique’s Ministry of Mineral Resources and Energy (MIREME) is implementing this programme. The bidding for projects is expected to start in 2021.

For more information of the status of GET FiT and details about the programme visit: https://www.getfit-moz.org/

Modern Cooking Facility for Africa

Technology focus: ICS

Duration: 2022 to 2027

The Modern Cooking Facility for Africa is managed by NEFCO and funded by SIDA. The programme works towards increasing access to clean cooking (high-tier solutions) in six Sub-Saharan African countries including Mozambique. It uses the RBF mechanism to support the clean cooking businesses in reaching over 3 million people in Africa until 2027. The first funding round is opened until 21 June 2022 and aims to distribute 420,000-840,000 electric, biogas and bioethanol cookstoves and associated fuels.

For more information, visit: https://www.nefco.int/fund-mobilisation/funds-managed-by-nefco/modern-cooking-facility-for-africa/

ProEnergia

Technology focus: On-grid electrification, mini-grids, SHS

Duration: 2019 to 2023

The Energy For All (ProEnergia) programme aims to increase access to electricity in both peri-urban and rural areas of Mozambique. The targeted households are located in densely populated areas close to the national grid. The project expects to connect around 250,000 households, of which 185,000 will be from rural areas and 65,000 in peri-urban areas. This project not only aims for grid densification, but also for off-grid electrification. The off-grid part has two components: electrification using mini-grids and mobilising off-grid companies using result-based financing (RBF). The project also offers technical assistant to EDM, and to FUNAE to develop electrification projects. This project is financed by the World Bank and is an important driver to Mozambique’s National Electrification Strategy.

The programme is divided into two phases. The first phase will run from 2019 to Sep 2022 and the second phase will run from Sep 2022 to 2023. Until June 2022, the programme has provided on-grid connections to 307,000 households and off-grid connections to around 3000 households.

For more information on this project visit: https://projects.worldbank.org/en/projects-operations/project-detail/P165453

PROLER – Promoçao de Leilões de Energias Renovaveis

Technology focus: On-grid electrification

Duration: 2019 to 2025

One of the resulting initiatives from Mozambique’s National Electrification Strategy is the renewable energy auction mechanism called Promoçao de Leilões de Energias Renovaveis (“Promotion of Renewable Energy Auctions” -PROLER). PROLER is a public tender model initiative launched in 2018. It is financed by the European Union and implemented jointly by AFD – Agence Française de Développement and the state-owned utility EDM. This programme provides technical assistance to Mozambican Government for setting up and launching call for tenders for large scale solar and RE projects with total installed capacity of 120 MW.

Until the end of 2020, three solar PV and one wind power projects are covered by PROLER’s schedule. The first solar PV project was launched in October 2020 and for the rest of the projects, viability studies will be carried from 2021 to 2022.

For more information about the National Electrification Strategy and PROLER visit: http://proler.gov.mz/wp-content/uploads/2021/01/EDM_Novas-Energias_Brochura_A4.pdf

Timeline of projects planned by PROLER

For more information about the PROLER mechanism and to review the status of current tenders visit PROLER’s main page at:

http://proler.gov.mz/

REACT SSA - Renewable Energy and Adaptation to Climate Technologies in sub-Saharan Africa

Technology focus: Mini-grids, SHS, PUE, ICS

Duration: 2018 to 2022

REACT sub-Saharan Africa (REACT SSA) is a programme financed by the Africa Enterprise Challenge Fund (AECF) and the Swedish International Development Agency (SIDA), to drive adoption of clean fuels and renewable energies by mobilising the private sector. It’s objective is to “support the private sector to meet the energy needs of rural communities in Africa.”

Innovation Fund was created to build up to the objectives of REACT SSA. The Innovation Fund will provide financial and technical support to renewable businesses for testing and commercialising new/existing innovations. With a total budget of SEK 50 million, REACT SSA supports businesses focused on renewable technologies, pico and large solar home systems, clean fuels and clean cook stoves, mini-grids, and other innovative ideas in RE sector.

For more information on the REACT SSA programme visit:

https://www.aecfafrica.org/portfolio/renewable_energy/react_ssa

https://www.aecfafrica.org/index.php/the-AECF-innovation-fund

RERD2 – Renewable Energy for Rural Development Phase 2

Technology focus: Mini-grids, PUE

Duration: 2018 to 2024

The Renewable Energy for Rural Development Phase 2 (RERD2) is a programme implemented by the Belgian development agency, Enabel in cooperation with Mozambique’s Energy Fund, FUNAE. This programme is the second phase of the Renewable Energy for Rural Development (RERD1), a programme that focuses on providing energy access in rural areas using renewable energy sources. This new phase follows current and updated policies and is in line with the most recent electrification goals for universal energy access by 2030. It will mainly focus on investing in new hydro and solar mini-grids as well as operation and maintenance of existing installations.

For the details of RERD2 visit: https://open.enabel.be/en/MOZ/2188/p/renewable-energy-for-rural-development-phase-2-rerd2.html

TSE4ALLM – Towards Sustainable Energy for All Mozambique

Towards Sustainable Energy for All Mozambique is implemented by the United Nations Industrial Development Organisation (UNIDO) and is in line with the Government of Mozambique’s aim to improve energy access and promote productive use of energy in rural areas. The project is funded by the Global Environment Facility (GEF), an international financing mechanism for environmental and sustainable development projects in all 184 Assembly member countries.

The TSE4ALLM aims to “promote market-based dissemination of integrated renewable energy systems for productive activities in rural areas.” The four expected results are:

1. Establishment of a regulatory environment for integrated renewable energy systems in rural areas
2. Strengthened capacity of key actors and information available to all market players
3. Demonstrated and scaled up integrated renewable energy systems
4. Continuous monitoring and evaluation of project progress

For more information visit: https://www.tse4allm.org.mz/

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