Mozambique Energy Situation
25.9500° S, 32.5833° E
Total Area (km²): It includes a country's total area, including areas under inland bodies of water and some coastal waterways.
Population: It is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin.
Rural Population (% of total population): It refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.
GDP (current US$): It is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.
GDP Per Capita (current US$): It is gross domestic product divided by midyear population
Access to Electricity (% of population): It is the percentage of population with access to electricity.
Energy Imports Net (% of energy use): It is estimated as energy use less production, both measured in oil equivalents. A negative value indicates that the country is a net exporter. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport.
Fossil Fuel Energy Consumption (% of total): It comprises coal, oil, petroleum, and natural gas products.
The Republic of Mozambique is located on the south-eastern coast of Africa and has a surface area of 801,590 square kilometres. It is bordered by South Africa, Swaziland, Zimbabwe, Zambia, Malawi, Tanzania, and separated by the Indian Ocean from Madagascar. The country is divided into ten provinces, and a provincial capital city (see Map: Provinces in Mozambique). It is one of the poorest countries in the world, and the 7th poorest in Africa with a GDP per capita of USD 1281 (2019), a total GDP of USD 14.96 billion (2019), and an annual GDP growth of 3.11% (2018).
Mozambique has undertaken significant efforts in recent years to electrify the country. The electrification rate has increased from 5% in 2001 to 29% in 2019. In 2022, it increased to 44% from 34% in 2020. Access to electricity, however, remains low and is mainly focused on urban areas. In 2019, 72% of the urban population had access to electricity compared to 5% of the rural population. This imbalance represents an important challenge to achieving country-wide electrification by 2030, considering that the vast majority (63% in 2019) of Mozambique’s population lives in rural areas.
The national grid including off grid facilities is claimed to reach some 30 % of the country today in terms of numbers of people with potential access to the grid (not connected). Many district capitals depend on expensive and often unreliable power generation with diesel generators. Outside these towns, the situation is even worse. The overwhelming majority of rural households, most rural schools, health centres and administrative posts are without access to electricity. Lack of mechanical power is a bottleneck for the rural subsistence agricultural production, as grain producers have to walk long distances to the nearest milling facility. Rural areas lack electricity for lighting, radio and communication in households and for refrigeration in small commerce. Nevertheless, many rural household spend a considerable share of their income for modern energy in the form of kerosene or batteries (€ 4–5 per month). Lack of access to electricity restricts the local population’s opportunities for income-generating activities.
The energy sector is key to the country's economy already today, since energy exports make up a large share of total foreign exchange earnings. Moreover, the availability of cheap electricity is one of the main reasons for the significant foreign direct investment in energy-intensive industries in Mozambique. Energy exports (hydropower, coal, gas and possibly oil) and projects to cover the growing domestic electricity demand will play an increasingly important role in the years to come. The liberalisation of the power sector initiated in 1997 allowed for third parties from the private sector to enter the power generation, transmission and distribution markets without impressive results so far (2012).
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Mozambique has considerable energy resources with an estimated hydropower potential of 12,000 MW and also gas reserves (estimated at reaching 700 billion cubic metres) and vast coal reserves (estimated to reach 140 million TJ) with the potential of generating approx. 500 MW and 5,000 MW respectively. Regarding solar, it has about 23 TW capacity, out of which 2.7 GW could easily be harnessed.
A National Policy and Strategy for Biofuels was approved in February 2009 which focuses on ethanol from sugarcane and sorghum and coconut and jatropha for biodiesel. This policy has led to hundreds of millions of dollars in investment plans in ethanol and biodiesel in Mozambique. In October 2007 ethanol plant in Mozambique received US$510 million in support from the UK. However, the actual on-the-ground activity is unclear and production has yet to commence. Biofuels are not readily available in the country and export details are also not available.
Renewable Energy Potential
|Along the coasts (Speeds between 4 - 6 m/s at 80m height)
|12 GW (1 GW in small installations up to 10 MW)
|12 000 MW
|100's of MW (Big biogas potential)
|2 GW biomass potential
Electricity Generation and Consumption
Mozambique has a total installed capacity of 2,780 MW (2020). The projections for 2030 from the Power Sector Master Plan show an expected increase in the total installed capacity to 6,001 MW. Hydropower is the dominating electricity source with 2,189 MW, 79% of the total energy mix, followed by 442 MW from gas (16%), 108 MW from heavy fuel oil (HFO) (4%) and 41 MW from solar (1%) (2020).
There are six working hydropower stations across the country. The largest hydroelectric plant is located in the Tete province and is operated by Hidroeléctrica de Cahora Bassa (HCB). HCB is responsible for most of the hydroelectric generation, with a capacity of 2,075 MW. In 2014, it supplied up to 88% of the power consumed in Mozambique. Due to the low electricity demand (peak demand in 2014 was estimated at only 831 MW) resulting from scarce energy access in Mozambique, the majority of the generation from HCB is exported to South Africa. Smaller shares are exported to Zimbabwe and Botswana. 
The table below shows the most recent energy indicators reported by the IEA. In 2018, the total primary energy supply was 10.43 Mtoe, from a total of 20.23 Mtoe produced that year. Final electricity consumption was only 13.63 TWh, however, this number has increased drastically by more than 2000% since 1990.
|Total primary energy supply
|Total electricity consumption
|Electricity consumption per capita
Despite its large renewable energy resources, the country energy sector focus is on large hydro projects in the Zambezi Basin (i.e. Mphanda Nkuwa) to produce power for export to South Africa and for industry. Mozambique relies heavily on the export of commercial electricity to South Africa from the Cahora Bassa dam on the Zambezi River to generate foreign exchange income.
The two immediate projects are the 850 MW (nominal) expansion of the Cahora Bassa dam and the controversial Mphanda Nkuwa dam (2500 MW). See table below.
Project Name Type of Project
CB North Bank Hydropower expansion
850 to 1300 additional MW
Detailed feasibility study is underway
Mphanda Nkuwa Hydropower
Env. + Soc. Impact Study underway
Moatize Coal fired power plant
IES is the developer
Temane Combined Cycle natural gas fired power plant
On May 2022, USAID and DFC signed an agreement with EDM to provide a loan of USD 200 m to support the design, construction and operation of the project. 
As a result of March 2009 Government policy, the biofuels sector is receiving hundreds of millions of dollars in investment (sugar – ethanol, jatropha --- biodiesel). However, production has yet to commence and there is considerable controversy about transparency and food vs. energy.
The market situation for photovoltaic (PV) and hydro power technologies and services is still in early stages.The off-grid market is identified to be around 4 million households, creating an opportunity for not only electrification but also boosting the local economy. UNEP has estimated that for every 10,000 off-grid houses connection, 30 jobs are created by renewable energy. The jobs could be created in the local manufacturing, distribution and maintenance. Apart from electrification, off-grid can also support other productive uses of electricity especially in the agriculture sector (solar pumping).
The private sector is underdeveloped in Mozambique and until 2018, only 25 business were either active or were inclined to enter the market in near future. These businesses are mostly dependent on public tender and donor initiatives. However, the informal off-grid solar products market is thriving in Mozambique with products imported from South Africa, Tanzania or China. This could be because Mozambique has a higher import duty and VAT on PV and ICS as compared to other sub-Saharan countries such as Ethiopia, Ghana or Tanzania. These products in the informal market enter via informal channels and do not pay the import taxes.
The Improved Cookstove (ICS) market in Mozambique is small and is categorized by mostly donor/NGOs initiatives. Up until March 2020, there were 10-15 companies supplying ICS stoves (charcoal and fuelwood) in the Mozambique market compared to 4 ICS suppliers in 2018. Some of the companies include: MozCarbon, ENI, ICEMA LDA, Sogepal and Pamoja Moçambique. For the ICS supply chain, two-step distribution chain i.e. producers to consumers is most common but many companies are also expanding the distribution chain to reach consumers outside the capital city, Maputo.
For green mini grid, the tendering process is similar as big energy projects and this increases the complexity for obtaining a concession contact, especially for local businesses. However, the government is promoting mini-grids for public spaces such as health centres, schools and water pumping for community and agricultural purposes. There is also a new regulation which has provisions for green mini-grids but it is still unclear how they will be implemented on the ground. 
In the case of micro and pico hydro there are no readily available products available in the country which makes prices prohibitive for communities and individual households. However there is a good potential for local manufacture of water wheels and pico turbines, although the market is still very limited and therefore local services tend to be rather expensive.
In its first phase, ENDEV MOZAMBIQUE started pioneer activities in the local manufacture of water wheels for upgrading traditional maize mills and the manufacture of pico turbines with most promising results. Therefore it is envisaged to upscale micro/pico hydro power activities sustainably on a local level with an appropriate and cost effective approach for technical capacity building, technology transfer and market development.
The market for PV is divided into steadily growing local market spots and mainly capital based PV providers working with directly imported equipment for government projects funded by donors. The local market is efficient and reliable but informal, with low quality products of Chinese origin coming mainly from RSA. Market actors are lacking technical knowledge. In parallel to the dissemination of products from the local market ENDEV MOZAMBIQUE has started designing an energy efficient compact small solar home system (SSHS) with a local enterprise. In the case of PV for household lighting, technical capacity building, technology transfer and market development is envisaged within a Public Private Partnership (PPP) measure with German enterprises and higher quality products.
- Click here to read about the market situation for solar solutions in Mozambique.
- Click here to read about the market situation for improved cookstoves in Mozambique.
- Click here to read about the market situation for solar irrigation in Mozambique.
In addition to the overarching need for developing the countries extensive energy resources (hydro, coal, gas and biomass) for both domestic and regional consumption the main challenges in the power sector in Mozambique are:
- Ensuring that affordable electricity supply is available to meet the rapidly growing domestic demand. In the near term, this will involve the continued extension of the grid with a focus on loss reduction and intensification of the grid,
- Reaching the vast areas of the country beyond the national grid managed by EDM. The GoM is committed to supporting decentralized electrification of social infrastructure (rural schools, clinics and administrative offices) and to increase access to modern energy services to villages and rural enterprises through PV systems, micro/pico-hydro schemes, modern biomass energy, and other Renewable Energy Technologies (RETs),
- Ensuring that power shortages do not become a constraint on economic growth. Several GoM proposed generation and transmission ―mega-projects‖ will address sufficiency and security of supply for the medium to long-term,
- Institutional strengthening and capacity development of the main sector public institutions (MoE, EdM, FUNAE and CNELEC) but also of the private sector composed of NGOs, MFIs, and local enterprises working with RETs, in order to improve their respective performance, governance and effectiveness.
Key Problems of the Energy Sector
Power Africa states that Mozambique's energy sector's most challenging issues are as follows:
- Public Finances/Macro-economic issues
- Lacking credible utility and cost-reflective tariff
- Lack of strong, transparent regulator
Policy Framework, Laws and Regulations
The legal framework relating to energy in Mozambique is composed of a variety of policies, strategies and regulations, the most important ones being the energy strategy (2009), the policy for the development of new and renewable energies 2011-2025 (2011), the strategy of the conversation and sustainable use of biomass energy (2013), the strategy of biofuels (2009), the regulation of biofuels and their mixture and the regulation that established the feed in tariff for new and renewable energies - REFIT (2014).
Within PARPA (PRSP), the programme for reduction and alleviation of absolute poverty, the GoM has been granting high priority to efforts to increase access to electricity for the population. Within the PARPA II the GoM has affirmed the critical role of the energy sector in reducing poverty. Adequate and equitable access to energy resources and services such as the provision of energy services to households, rural schools, administrative offices, and hospitals in rural areas is defined as a key driver of growth and poverty alleviation. The energy-related goals set in the PARPA are being operationalised by GoM through a number of strategies, investments and studies that have been prepared or are under way. The PARPA II (§507ff) outlines a programme for the energy sector, which entails: Electrification, Liquid Fuels, Renewable Energy, and Intersectoral Collaboration.
The Energy Policy approved March 3rd 1998 by the Council of Ministers under Resolution 5/98 established with the following objectives among others relevant for ENDEV MOZAMBIQUE.:
- Guarantee reliable supply of energy, at lowest possible cost, in order to meet present demand and future levels based on economic development trajectories,
- Increase the energy options available for household consumption,
- Secure better efficiency in energy utilization,
- Promote the development of environmentally friendly conversion technologies, namely hydro, solar, wind and biomass,
- Promote competitive, dynamic and more efficient entrepreneurs.
In March 2009 the Policy for Renewables was defined with the following objectives among others with relevance for ENDEV MOZAMBIQUE:
- Increase the access to modern energy services of high quality and accessible prices,
- Reduce poverty and contribute to the Millennium Development Goals,
- Contribute to the generation of local and national income and employment.
The revised Energy Strategy aims to align Mozambique with best international practices for efficient energy utilization, raising awareness amongst its citizens about good environmental practices, diversifying the energy supply matrix, giving particular emphasis to new and renewable sources of energy and to the opportunities contained within the Clean Development Mechanisms, under the Kyoto Protocol. It should ensure energy availability to sustainably meet the requirements of national socio-economic development by undertaking the necessary actions to increase access to diversified energy sources in a sustainable way, contributing to the welfare of the population and the country‘s socio-economic development. The strategy recognizes accelerating electrification efforts, giving priority to rural areas, through the expansion and intensification of the national grid, the utilization of Renewables, the optimization of low cost solutions, and the introduction of measures which will ensure productive and efficient use of electricity (as low consumption/high efficiency light bulbs). The GoM aims to support regional integration and reflects in its national legal framework the best practices in environmental protection. Mozambique has its own Oil Law and Electricity Law. A Regulation defines the licensing of electricity installations, another Regulation establishes the competencies and procedures regarding concessioning of production, transmission, distribution and marketing of electricity, as well as its importation and exportation. Other regulations establish the norms for the national grid, the instructions for CNELEC and its regulatory functions, and the Technical Unit for Implementation of Hydroelectric Projects (UTIP). Based on the new Energy Sector Strategy with its specific subsectors of Electrical Energy and New and Renewable Energies, as well as the Energy Strategic Plan 2009 – 2013, the GoM has prepared a comprehensive 5-year plan for energy development and access. In the current government’s 5-year plan (2015-2019) increased access to electricity appears as one of the strategic objectives. Mozambique’s target is to provide electricity access to 50% of the population by 2023. Rural electrification is planned to be increased using both the national grid and household solar systems. A special focus lies on the electrification of health centres through PV solutions. Also the construction of 12 mini hydropower plants is foreseen. The 5-year plan does not make any mention of biomass related energy issues.
Institutional Set-up in the Energy Sector
The public sector is represented by:
- The Ministry of Mineral Resources and Energy (MIREME) FUNAE was created in 2015 after elections by merging the former Ministry of Energy with the Ministry of Mineral Resources. The Ministry consists of four directorates: Mines and Geology, Hydrocarbons and Fuels, Energy and Planning and Cooperation. In the energy sector MIREME is responsible for national energy planning and policy formulation and for overseeing the operation and development of the energy sector. MIREME is represented in the provinces through the Provincial Directorates of Mineral Resources and Energy (DIPREME).
- Electricidade de Moçambique (EdM), is a vertically-integrated, government-owned electric utility responsible for generation, transmission and distribution of electricity in the national grid. EdM buys most of its power supply (apr. 400 MW) from Hidroelectrica de Cahora Bassa (HCB), owner and operator of the Cahora Bassa hydro power plant on the Zambezi (2,075 MW). The GoM owns 82 percent of HCB which operates as an Independent Power Producer (IPP) The bulk of the electricity generated at HCB is exported to South Africa, with a small amount to Zimbabwe. EdM sells any excess electricity on the Southern Africa Short Term Energy Market. The Mozambique transmission grid is currently interconnected with South Africa, Zimbabwe and Swaziland.
- The Fundo Nacional de Energia (FUNAE) was established in 1997 as a public institution to promote rural electrification and rural access to modern energy services, in a sustainable manner, and as a contributor to economic and social development in the country. Since its establishment FUNAE has implemented numerous projects using renewable energy technologies to electrify schools, clinics and communities.
- The Conselho Nacional de Electricidade (CNELEC) was re-established as an independent advisory regulatory body for the electricity sector in early 2008 with support from the World Bank Energy Reform and Access Project (ERAP). CNELEC was instructed to give its highest priority to an evaluation of EDM‘s performance under its Performance Contract with the GoM. This Performance Contract covers the years 2007 to 2009 and sets out the goals and indicators to be met annually by EDM and GoM. CNELEC was also instructed to conduct a review of the current methodology used by EDM in setting tariffs. In performing the review of EDM‘s performance, the directive instructed CNELEC to conduct its review in an open and transparent manner with public hearings in several locations throughout the country.
- The private sector is represented by various licensed private enterprises which participate in the grid extension and household connection works of EdM and private enterprises for the provision and installation of PV products, often situated exclusively in the capital Maputo. A microfinance sector with banks and NGOs is active throughout the country but often exclusively restricted to the province and/or district capitals. The NGO sector is characterized by relatively weak institutional profiles and technical specialisation, as well as weak implementation structures and technical competences.
Major Donor Activities
Currently, different international actors such as the EnDev, SNV, GIZ, World Bank, JICA, USAID are active in the energy supporting different policies as well as RE projects.
- For a list of all donor energy programmes, click here.
- For a list of all development actors, click here.
Since July 2007, the World Bank has served as co-chair with the GoM on the ―Energy Sector Working Group‖ that was established within the framework of the Paris Declaration. The Bank is in preparation of the second phase of the Energy Reform and Access Project (ERAP), which will now be called Energy Development and Access Programme (EDAP). The proposed project will help establish the necessary operational framework for increasing electricity access to un-electrified areas nationally in a sustainable and programmatic manner, aiming at mainstreaming a sector-wide approach (SWAp) by establishing a comprehensive donor partnership framework for coordinated and sustained financing of investment and capacity strengthening aligned with national priorities and procedures (WB, ADB, ADF, OFID, BADEA, IsDB, Kuweit Fund) With Norway, the World Bank is also co-financing the Mozambique- Malawi Transmission Interconnection Project (cancelled medio 2010) and the Mozambique Regional Transmission Backbone Project. Sweden is engaged together with co-financing of Norway and Denmark in rural electrification (grid extension and household connections) in Sofala, Manica, Tete and Niassa Provinces. Norway is financing rural electrification in Cabo Delgado and grid extension in Gurue - Cuamba – Lichinga and Namacurra – Pebane. Technical assistance (TA) and capacity development for EdM in mega project development for power generation, as well as for the MoE are delivered by Norway and Sweden. Sweden also is embarking on the rehabilitation of the hydro power stations in Mavuzi and Chicamba. The European Commission (EC) is financing rural electrification in Cabo Delgado, Tete and Sofala with EdM, PV electrification in rural areas with FUNAE and capacity building in energy planning and management for the MoE. DFID is giving TA on Biofuels to the National Directorate of Renewable Energy of the MoE.
In April 2019, World Bank approved a USD 82 million energy grant to Mozambique to increase access to electricity in the peri-urban and rural areas, expand the existing grid network and promote the use of off-grid energy solutions in areas where grid expansion is not feasible.This project is also supported by a USD 55 million Multi-Donor Trust Fund, also admisitered by the World bank. The project will focus on the northern provinces of Niassa, Nampula and Cabo Delgado, and Zambezia and Sofala in the centre of the country. It also aims to contribute towards the Mozambique government’s Energy for All project.
Belgium had an energy program with the Ministry of Energy trough FUNAE, from September 2010 up to December 2016. The program focused on off-grid energy systems, based on renewable energy resources (hydraulic, solar and wind), in remote rural areas where no grid connection is foreseen within the next five years. The program was financed, on grant basis, electrification systems for community infrastructures such as administrative buildings, schools, health centres, water pumping devices and public lighting. In 2017 a new program has to start, worth a grant of 12 million euro, with the same partner FUNAE, including renewable energy installations for private use (household, shops or small enterprises) to be stimulated by subsidies (investment funds) and soft loans through micro-finance systems. In order to increase the sustainability of the renewable energy installations, the program will also provide a computerized asset management system and technical assistance focused on capacity building through training initiatives, research and development.
- Mozambique Off-grid Knowledge Hub
- Mozambique Solar Hub
- Mozambique Nano/Mini Grid Hub
- Mozambique Cooking Energy Hub
- Mozambique Productive Uses of Energy Hub
- USAID Power Africa: Mozambique Factsheet
- World Bank, ‘Mozambique | Data’. https://data.worldbank.org/indicator/EG.ELC.ACCS.UR.ZS?locations=MZ
- S.Excia Eng. Carlos Zacarias - Ministro dos Recursos Minerais e Energia (MIREME). 2022. CDD Just Energy Transition. https://www.youtube.com/watch?v=3GphYhRJq50
- Renewables in Mozambique (2021):https://www.lerenovaveis.org/contents/lerpublication/aler_mar2021_resumo-renovaveis-em-mocambique-2021.pdf
- World Bank, ‘Mozambique | Data’. https://data.worldbank.org/indicator/EG.ELC.ACCS.UR.ZS?locations=MZ
- Mozambique: Energy and the Poor’, K. Naidoo, C. Loots, 2020, https://sun-connect-news.org/fileadmin/DATEIEN/Dateien/New/2021-01-29_UNDP-UNCDF-Mozambique-Energy-and-the-Poor.pdf.
- BERF (2016). Business environment constraints in Mozambique’s Renewable Energy Sector: Solar PV Systems and Improved Cook Stoves, Business Environment Reform Facility, UK Department of International Development. https://assets.publishing.service.gov.uk/media/5c76b459ed915d3547d50a07/Final_BERF-Mozambique-Renewable-Energy-8th-Dec2016.pdf
- The biofuels sector, and especially the biodiesel sector, has attracted considerable investment. Hundreds of millions of dollars of investment has been made. Much of this has been in the sugar sector which is growing rapidly. At least 7 biodiesel/jatropha plantations have been set up with poor -- and controversial – results. (see Justica Ambiental!/Uniao Nacional de Camponeses, Jatropha: A Socio-economic pitfall for Mozambique. August 2009. http://ictsd.org/i/news/biores/45169/
- Recurso Eólico’, accessed 24 June 2021, https://www.funae.co.mz/index.php/pt/recursos/recurso-eolico
- Pranab Baruah and Brendan Coleman, ‘Country Brief: Mozambique Off-Grid Solar Power in Mozambique: Opportunities for Universal Energy Access and Barriers to Private Sector Participation’, n.d., 26.
- GET.invest, ‘Renewable Energy Potential – GET.Invest’, accessed 21 April 2021, https://www.get-invest.eu/market-information/mozambique/renewable-energy-potential/
- Aler_mar2021_resumo-Renovaveis-Em-Mocambique-2021.Pdf’, accessed 23 April 2021, https://www.lerenovaveis.org/contents/lerpublication/aler_mar2021_resumo-renovaveis-em-mocambique-2021.pdf
- Mozambique: Energy and the Poor’, K. Naidoo, C. Loots, 2020, https://sun-connect-news.org/fileadmin/DATEIEN/Dateien/New/2021-01-29_UNDP-UNCDF-Mozambique-Energy-and-the-Poor.pdf.
- EDM, Integrated Master Plan 2018-2043,https://www.edm.co.mz/en/document/reports/integrated-master-plan-2018-2043
- IEA, ‘Mozambique - Countries & Regions’ https://www.iea.org/countries/mozambique
- US backs Mozambique’s energy security projects: https://www.esi-africa.com/us-backs-mozambiques-energy-security-projects/
- Global Green Growth Institute (2017). Country Brief: Mozambique. Off-grid solar power in Mozambique: Opportunities for universal energy access and barriers to private sector participation.fckLRfckLRhttps://sun-connect-news.org/fileadmin/DATEIEN/Dateien/New/Country-Brief-Mozambique.pdf
- Lighting Global (2018):Off-Grid Solar Market Assessment in MozambiquefckLRfckLR https://www.lightingafrica.org/wp-content/uploads/2019/07/Mozambique_off-grid-assessment.pdf
- EnDev, ‘Workshop Energy Market Scorecard Mozambique ICS 2020’
- Power Africa. (2018). Mozambique Factsheet. Retrieved from: https://www.usaid.gov/sites/default/files/documents/1860/Mozambique_-_November_2018_Country_Fact_Sheet.pdf
- Affrica-EU Renewable Energy Cooperation Program: Solar Energy Investment Opportunities in MozambiquefckLRfckLR