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Nano/Mini-Grid Market in Mozambique: Consumer Insights
Willingness to pay for electricity
According to the world bank definition, “affordability is a household’s monthly expenditure on electricity not exceeding 5 percent of total household expenditures in order to purchase 30kWh per month, which is a subsistence level electricity consumption[1]”. For the EDM tariffs, 30 kWh electricity costs, 0,97*30 i.e 29 Mt (0.45 USD). For mini-grids, the tariff is calculated on a case by case scenario.
For this calculation, we assume that REFIT tariff is applicable (lowest rate for each technology) and the table below shows the affordability based on subsistence level of electricity consumption.[1]For solar mini-grids, in Gaza, Nampula, Niassa, Sofala and Zambezia, the cost of subsistence electricity exceeds the 5% of the monthly household expenditure.
| Monthly Household Expenditure | Cost of Subsistence Electricity as % of Household Monthly
Expenditure | ||||||
| Poverty rate (%) | National Rate | Solar mini-grids | Small hydro mini-grids | Wind mini-grids | Biomass mini-grids | ||
| Cabo delgado | 4413,4 | 50,03 | 0,65936 | 5,37681 | 1,5566 | 2,80056 | 2,7598 |
| Gaza | 3926,4 | 43,62 | 0,74114 | 6,0437 | 1,7497 | 3,14792 | 3,1021 |
| Inhambane | 4078,6 | 34,52 | 0,71348 | 5,81817 | 1,6844 | 3,03045 | 2,9863 |
| Manica | 4185,2 | 37,15 | 0,69531 | 5,66998 | 1,6415 | 2,95326 | 2,9103 |
| Maputo Cidade | 11611,9 | 3,83 | 0,2506 | 2,04359 | 0,5916 | 1,06443 | 1,0489 |
| Maputo Province | 9877 | 11,8 | 0,29462 | 2,40255 | 0,6956 | 1,25139 | 1,2332 |
| Nampula | 2708 | 64,84 | 1,07459 | 8,76292 | 2,5369 | 4,56425 | 4,4978 |
| Niassa | 3622 | 66,7 | 0,80342 | 6,55163 | 1,8967 | 3,41248 | 3,3628 |
| Sofala | 3332,9 | 49,56 | 0,87311 | 7,11993 | 2,0613 | 3,70848 | 3,6545 |
| Tete | 4428,7 | 41,93 | 0,65708 | 5,35823 | 1,5512 | 2,79089 | 2,7502 |
| Zambezia | 2541,5 | 61,76 | 1,14499 | 9,33701 | 2,7031 | 4,86327 | 4,7924 |
Table : Affordability based on subsistence level of electricity consumption[1]
Currently, mini-grids are forced to apply a uniform tariff corresponding to the national tariff. When this is applied, the affordability is within the 5% rate for all provinces but however might not be financially feasible for the mini-grid operator.
The new Mozambican Regulation for Energy Access in Off-Grid Areas from 2021 specifies the guidelines for tariff calculations. It states the tariffs must be calculated on the bases of accepted costs and allowed revenues, including the ability to pay of consumers and existing incentives for economic efficiency. The tariff structure will be fixed for each consumer category. Tariffs will be revised and authorised by the Energy Regulation Authority (ARENE).[2]
Further Information
References
- ↑ 1.0 1.1 1.2 ‘Mozambique Energy for All ProEnergia Project.Pdf’. Accessed 14 June 2021. https://documents1.worldbank.org/curated/pt/594061554084119829/pdf/Mozambique-Energy-for-All-ProEnergia-Project.pdf.
- ↑ Decreto-NÂo-93-2021-de-10-de-Dezembro-de-2021-Aprova-o-Regulamento-de-Acesso-Ã-Energia-Nas-Zonas-Fora-Da-Rede.Pdf’. Accessed 19 January 2022. https://amer.org.mz/wp-content/uploads/2021/12/Decreto-nA%CC%82o-93-2021-de-10-de-Dezembro-de-2021-Aprova-o-Regulamento-de-Acesso-A%CC%83-Energia-nas-Zonas-Fora-da-Rede.pdf.
