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Institutional Framework in Mozambique

From energypedia

Overview

This article describes the different entities involved in the energy sector decisions in Mozambique and their role in different policies, strategies and reforms that have been implemented in the past two decades. It also mentions two supporting networks that help promote the development of renewable energies in the sector.

Institutional Framework

MIREME - Ministério dos Recursos Minerais e Energia

The Ministry of Mineral Resources and Energy (MIREME) is the main energy planning entity on the national level. MIREME supervises the operation and development of the whole energy sector and develops the relevant policies and strategies. It is formed by three sub-bodies:

  • DNCH (Direcção Nacional de Hidrocarbonetos e Combustíveis) – Directorate for Coal and Hydrocarbons
  • DoE  (Direcção de Economia) – Directorate of Economy
  • DNE (Direcção Nacional de Energia) – Directorate of National Energy[1]

For more information, please visit MIREME’s website at: https://www.mireme.gov.mz/

MEF - Ministerio da Economia e Financas

The Ministry of Economy and Finance (MEF) is Mozambique’s central body for the formulation of economic and social development policies[2]. In Mozambique’s electrification and energy access strategies, MEF is the entity responsible for allocating funds for each process. According to the National Electrification Strategy, the Ministry will create an institution called the Electrification Account to manage resources specifically for EDM subsidy programs[3].

For more information on the roles of the Ministry of Economy and Finance visit their homepage at: https://www.mef.gov.mz/

EDM - Electricidade de Moçambique, E.P.

Electricidade de Moçambique E.P. (EDM) is Mozambique’s State-owned utility company. After EDM turned from a monopoly into a public enterprise, it became the central authority for the generation, distribution, transmission, procurement and marketing of electricity[4]. As Mozambique’s grid manager, the role of EDM in the National Electrification Strategy (ENE) is to improve electrification within the grid, as well as to implement future grid expansion projects.

For more information, visit EDM E.P.’s website at: https://www.edm.co.mz/

FUNAE – Fundo de Energia

While EDM is the main implementer of on-grid activities, FUNAE, the Energy Fund, is Mozambique’s implementation agency for off-grid and rural electrification affairs. With financial support from international development organisations, FUNAE acts as a public institution in charge of the development and operation of mini-grids and Solar Home Systems (SHS). The target group for these projects are rural areas beyond the extension of the grid, with a special focus on access to renewable energy. Most of the energy access projects by FUNAE are targeted to schools, public buildings and healthcare centres[5].

The main activities performed by FUNAE include financial assistance for power projects, consulting, and promotion of electrification projects, including the publication of reports and studies on different technologies of interest for the energy sector[6]. Once projects are completed, they are sold, operated and maintained by either EDM, private operators, or community members[5]. Up until 2014, FUNAE has provided access to electricity through off-grid initiatives to about 3.7 million people and installed 60 solar irrigation system up until 2016[7].

Apart from electrification projects, FUNAE has promoted the use of improved cooking stoves (ICS) to low income families and institutions in rural areas as well as in cities located in the provinces of Maputo, Gaza, Manica, Sofala and Inhambane. Up until now, FUNAE has implemented projects for the manufacturing and distribution of ICS to orphanages, schools, senior centres, prisons, and family homes in these provinces[7]. While there is currently no clean cooking policy in Mozambique, FUNAE has worked in partnership with international development organisations, such as the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and SNV Netherlands Development Organisation[5].

For more information on FUNAE’s activities visit: https://www.funae.co.mz/index.php/en/

ARENE – Autoridade Reguladora de Energia

The Energy Regulation Authority (ARENE) originated from Law n. ° 11/2017, whose central objectives are to ensure the regulation and supervision of the energy sector, and to promote fair competition between public and private operators.

ARENE is a successor of the former governmental body, the National Electricity Council (CNELEC - Conselho Nacional de Electricidade), which acted as the only energy regulation, arbitration and advising authority from 1997 to 2017. Unlike CNELEC, ARENE is not a governmental entity, but an independent and autonomous body capable of providing transparent and impartial support on negotiations between public institutions and the private sector[8].

Since the organic statute in 2019, ARENE became the primary politically independent entity responsible for regulating the following activities:

  1. Production, transportation, distribution, marketing of electricity from any energy source (excluding nuclear) and the functions of operating the National Electricity System and the market
  2. Production, storage, distribution and marketing of liquid fuels and natural gas at a pressure of 16 bar
  3. Calculation and adjustment of tariffs to be paid by electricity users, ensuring transparency in the process
  4. Arbitration, conciliation and mediation in relation to disputes between concessionaires and public entities
  5. Contribution to national energy security by protecting the rights of energy consumers[9].

For more information about ARENE’s activities, visit their homepage at: http://arene.org.mz/

The following table summarises each entity and their main role in the energy access strategies in Mozambique.

Name Role Contact
EDM - Electricidade de Moçambique Grid expansion and electrification for population within the grid https://www.edm.co.mz/
MIREME - Ministry of Mineral Resource and Energy Main energy planning entity in a national level. https://www.mireme.gov.mz/
MEF - Ministry of Economy and Finance Allocate funds for energy projects https://www.mef.gov.mz/
FUNAE - Fundo Nacional de Energia Off-grid project investment and implementation https://www.funae.co.mz/index.php/pt/
ARENE - Energy Regulator Authority Calculation and adjustment of electricity tariffs http://arene.org.mz/

Supporting Networks

AMER - Associação Moçambique de Energias Renováveis

The Mozambican Association of Renewable Energies (AMER) is a non-profit association which promotes the development of renewable energy in Mozambique. AMER enables a space for different stakeholders from the energy sector to exchange relevant information on renewable energy. It also supports official bodies by raising funds for renewable energy promotion meetings and events, as well as by providing recommendations and proposals[10].

AMER receives support from other international stakeholders, such as the EU, through the GET.invest programme, SolarPower Europe, and from local associations. For the full list of partners, visit: https://amer.org.mz/partners/?lang=en

For more information, visit AMER’s homepage at: https://amer.org.mz

ALER - Associação Lusófona de Energias Renováveis

The Lusophone Association of Renewable Energies (ALER) is a non-governmental development organisation which promotes the development of renewable energy in Portuguese-speaking countries through knowledge sharing, capacity building, and organisation of events and meetings. ALER acts both as a member and a partner of AMER. Both AMER and ALER have worked together to organise stakeholder meetings to unify the energy sector in Mozambique and promote renewable energy[11].

For more information visit ALER’s homepage at: https://www.aler-renovaveis.org/en/home/

Further Information

References

  1. Mozambique_Renewable_Energy.Pdf’, accessed 24 May 2021, https://www.powerutilityleadership.com/wp-content/uploads/2018/02/Mozambique_Renewable_Energy.pdf
  2. Nature, Mission, Vision and Values’, accessed 31 May 2021, https://www.mef.gov.mz/index.php/2012-12-19-08-12-51/missao-e-visao
  3. ‘Mozambique-Energy-for-All-ProEnergia-Project.Pdf’, accessed 31 May 2021, https://documents1.worldbank.org/curated/pt/594061554084119829/pdf/Mozambique-Energy-for-All-ProEnergia-Project.pdf
  4. Background | EDM - Electricidade de Moçambique’, May 2021, https://www.edm.co.mz/en/website/page/background.
  5. 5.0 5.1 5.2 Kameshnee Naidoo, Christiaan Loots, and Giovanni Congi, ‘The Making Access Possible Programme’, 2020, https://sun-connect-news.org/fileadmin/DATEIEN/Dateien/New/2021-01-29_UNDP-UNCDF-Mozambique-Energy-and-the-Poor.pdf.
  6. Governmental Framework – GET.Invest’, https://www.get-invest.eu/market-information/mozambique/governmental-framework/.
  7. 7.0 7.1 ‘Our Activities’, accessed 24 May 2021, https://www.funae.co.mz/index.php/en/about-us/our-activities
  8. Government of Mozambique, ‘Lei n.o 11/2017’, https://www.dlapiperafrica.com/export/sites/africa/mozambique/insights/legislation-series/energy/downloads/lei-11_2017_br_141_arene.pdf_2063069299.pdf.
  9. Government of Mozambique, ‘Resolução n.o 2/2019’, 2019, 10.
  10. ‘WHAT WE DO – AMER’, accessed 24 May 2021, https://amer.org.mz/what-we-do/?lang=en
  11. ‘ALER - Lusophone Renewable Energy Association - About Us - ALER’, accessed 24 May 2021, https://www.aler-renovaveis.org/en/about-us/aler/