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Difference between revisions of "Solar Home System Market Landscape in Mozambique"
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| − | === | + | === Introduction === |
| + | Mozambique’s [[Solar home systems|solar home system (SHS]]) market is still at a nascent stage but is growing steadily largely due to the support provided by multiple donor funded programmes<ref>Hodgkinson and Smeshko, “Challenges in the Solar Home Industry in Mozambique.”</ref> and innovative financing mechanisms such as [[Pay-as-you-go Approaches (PAYGO)|Pay-as-you-go (PAYGO).]] PAYGO breaks down the initial high investment cost of SHS into small monthly/regular payments that are aligned with the customer’s willingness and ability to pay. | ||
| + | This article provides a snapshot of the SHS market in Mozambique particularly on '''actors involved in the market''' 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 [[Global Tracking Framework for Measuring Energy Access#Access%20to%20Electricity|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. | |
| − | + | For an overview on the demographics and socio-economic indicators for Mozambique, '''[[Mozambique- Country Information|see this chapter]].''' | |
| + | |||
| + | For detail information about the solar energy potential in Mozambique, please '''[[Mozambique Renewable Energy Potential|see this chapter]]'''. | ||
| − | + | === SHS Market Landscape === | |
| − | + | ==== Private sector ==== | |
| + | The SHS market has expanded greatly since 2017 and new players are entering the market. In 2018, there were around 20 companies selling certified SHS in Mozambique<ref>Greenlight, “Mozambique – Off-Grid Energy Market Assessment.”</ref>. According to the data from Lighting Global’s quarterly off-grid sales report, SHS sales increased from '''13,178 units in 2017 to 39,304 units in 2020'''<ref>Lighting Global et al., “Global Off-Grid Solar Market Report Semi-Annual Sales and Impact Data | July-December 2020”; GOGLA et al., “Global Off-Grid Solar Market Report Semi-Annual Sales and Impact Data | January - June 2020.”</ref><ref>No data was recorded for the first quarter of 2018 and 2019 due to confidentiality of the data i.e for the data to be considered, there has to be more than three companies taking part in the GOGLA survey. Thus, this section only shows the data from 2017 and 2020 for comparison</ref>. This number can be expected to be much higher as the data is based on selected GOGLA members and companies selling products that meet Lighting Global Quality Standards and those that participated in the survey. The results also only included sales data from manufacturers to avoid double counting. | ||
| + | Until date (June 2021), the market is dominated by five major solar companies that provide SHS on [[Pay-as-you-go Approaches (PAYGO)|''pay-as-you-go'']] (PAYGO) basis as well as direct cash sales. [https://www.solar-works.co.mz/pt/ ''Solarworks''!] was the first to start operations in 2017 followed by [http://www.epsilonenergia.co.mz/About-Us/Introduction Epsilon] in 2018, [https://www.engie-africa.com/node/11 ENGIE Energy Access] (previously called Fenix Intl) in 2019 and Ignite and Digitech in 2020<ref name=":0">“ALER - Resumo Renovaveis Em Mocambique 2021.”</ref>. These companies are a mix of manufactures (SolarWorks! and ENGIE Energy Access) who sell their own brand products and distributors (Ignite, Epsilon and Digitech) who sell other companies’ brand products. Together, they have sold over '''70,000 SHS units from 2017 until the end of 2020'''. They also cover all 11 provinces in Mozambique<ref name=":0" />. Further companies active in the SHS market include for example Green Watts, EREL - Empresa de Energias Renovaveis do Limpopo, Matharia, Ecosys, Dynamiss, Sogepal, Enteria, Agrofield, Sociedade Algodoeira do Niassa - JFS, S. A. - Francisco Ferreira dos Santos and Green Lights. | ||
| + | Table 1 shows the number of SHS sold by each company until 2020 as well as the types of products they offer (this table is continuously being updated with new information)<ref name=":0" />. | ||
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| + | ==== Donor programmes ==== | ||
| + | There are many international energy programmes that aim to provide electricity to rural households using SHS. These programmes provide subsidies and grants to SHS companies targeting the high cost of market entry in mostly rural and remote geographical locations. | ||
| − | '' | + | For a list of all active donor programmes in Mozambique, please see here. For a list of financing opportunities (whenever available), '''[https://www.get-invest.eu/funding-database/ please click here]'''. |
| − | + | Some of the major donor programmes that provide funding and support for SHS are highlighted below: | |
| − | + | '''[https://endev.info/countries/mozambique/ EnDev Mozambique]''' is a multi-donor programme that supports SHS companies by using a results-based financing mechanism. In 2019, it provided access to electricity to 229,300 people by supporting PAYGO companies, mini-grid operators and grid densification programme<ref>EnDev, “EnDev Mozambique.”</ref>. Along with financial support, EnDev also capacitates private companies by offering '''business development services''' targeted at improving the bankability and growth of private sector. | |
| − | + | '''[https://gruene-buergerenergie.org/en/countries/mozambique/ Green People's Energy Mozambique (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 nine African countries with a special focus on decentralised renewable energy and participation of local municipalities, cooperatives and local companies<ref>Giz, ‘Green People’s Energy’, accessed 27 May 2021, <nowiki>https://www.giz.de/en/worldwide/77417.html</nowiki>.</ref>. | |
| − | + | 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<ref>GBE, ‘Green People’s Energy for Africa – Mozambique’, Green People’s Energy for Africa, accessed 7 June 2021, <nowiki>https://gruene-buergerenergie.org/en/countries/mozambique/</nowiki>.</ref>. GBE's '''[https://www.renac.de/projects/current-projects/greenskills4dev GreenSkills4Dev]''' project offers online courses, live virtual workshops and hands-on practical training on different renewable energy topics including solar. The project is also collaborating with the Eduardo Mondlane University to offer Blended Learning Master Degree and is supporting local institutes to set up renewable energy trainings. | |
| − | '''World Bank’s ProEnergia programme''' aims to connect a total 250,000 households to the grid by the end of 2024. Specific targets related to SHS are<ref name=":1">World Bank, “Mozambique - Energy for All (ProEnergia) Project.”</ref>: | + | '''[https://projects.worldbank.org/en/projects-operations/project-detail/P165453 World Bank’s ProEnergia programme]''' aims to connect a total 250,000 households to the grid by the end of 2024. Specific targets related to SHS are<ref name=":1">World Bank, “Mozambique - Energy for All (ProEnergia) Project.”</ref>: |
* <span class="s4"></span>mobilise private companies using RBF to provide 18,000 households with access to electricity using SHS. | * <span class="s4"></span>mobilise private companies using RBF to provide 18,000 households with access to electricity using SHS. | ||
| Line 128: | Line 137: | ||
'''BRILHO,''' funded by UK Aid, provides financial support and technical assistance to the private sector for off-grid electrification with SHS and mini grids.. The fund is divided into two mechanisms: catalytic grants and results-based financing (RBF)<ref>“BRILHO.”</ref>. One of the companies that have already received funding form BRILHO is Ignite Power<ref>News and Karie, “Ignite Power Secures Funding from the BRILHO Programme to Expand Operations throughout Mozambique.”</ref>. | '''BRILHO,''' funded by UK Aid, provides financial support and technical assistance to the private sector for off-grid electrification with SHS and mini grids.. The fund is divided into two mechanisms: catalytic grants and results-based financing (RBF)<ref>“BRILHO.”</ref>. One of the companies that have already received funding form BRILHO is Ignite Power<ref>News and Karie, “Ignite Power Secures Funding from the BRILHO Programme to Expand Operations throughout Mozambique.”</ref>. | ||
| + | |||
| + | === 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 | ||
=== References === | === References === | ||
Revision as of 13:01, 27 September 2021
Introduction
Mozambique’s solar home system (SHS) market is still at a nascent stage but is growing steadily largely due to the support provided by multiple donor funded programmes[1] and innovative financing mechanisms such as Pay-as-you-go (PAYGO). PAYGO breaks down the initial high investment cost of SHS into small monthly/regular payments that are aligned with the customer’s willingness and ability to pay.
This article provides a snapshot of the SHS market in Mozambique particularly on actors involved in the market 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.
For an overview on the demographics and socio-economic indicators for Mozambique, see this chapter.
For detail information about the solar energy potential in Mozambique, please see this chapter.
SHS Market Landscape
Private sector
The SHS market has expanded greatly since 2017 and new players are entering the market. In 2018, there were around 20 companies selling certified SHS in Mozambique[2]. According to the data from Lighting Global’s quarterly off-grid sales report, SHS sales increased from 13,178 units in 2017 to 39,304 units in 2020[3][4]. This number can be expected to be much higher as the data is based on selected GOGLA members and companies selling products that meet Lighting Global Quality Standards and those that participated in the survey. The results also only included sales data from manufacturers to avoid double counting.
Until date (June 2021), the market is dominated by five major solar companies that provide SHS on pay-as-you-go (PAYGO) basis as well as direct cash sales. Solarworks! was the first to start operations in 2017 followed by Epsilon in 2018, ENGIE Energy Access (previously called Fenix Intl) in 2019 and Ignite and Digitech in 2020[5]. These companies are a mix of manufactures (SolarWorks! and ENGIE Energy Access) who sell their own brand products and distributors (Ignite, Epsilon and Digitech) who sell other companies’ brand products. Together, they have sold over 70,000 SHS units from 2017 until the end of 2020. They also cover all 11 provinces in Mozambique[5]. Further companies active in the SHS market include for example Green Watts, EREL - Empresa de Energias Renovaveis do Limpopo, Matharia, Ecosys, Dynamiss, Sogepal, Enteria, Agrofield, Sociedade Algodoeira do Niassa - JFS, S. A. - Francisco Ferreira dos Santos and Green Lights.
Table 1 shows the number of SHS sold by each company until 2020 as well as the types of products they offer (this table is continuously being updated with new information)[5].
| Name | Operating since | Provinces covered | SHS size (range in W) | Types of Systems | Unit of systems sold till 2020 | Financing model | Average price for the lowest Tier SHS offered by each company |
| SolarWorks! | 2017 | Maputo, Gaza, Inhambane, Sofala, Manica and Nampula | 20-155 | Manufacturer of SHS with:
lights+charger+radio lights+charger+radio+TV lights+charger+radio+ sewing machine |
40,000 | PAYGO+
direct sales |
For 20 W SHS (3 light+battery+charger)
Down payment: 595 MT (USD 9.41) Monthly instalment: 295 (USD 4.66) Duration: 30 months |
| Fenix Intl | 2019 | Maputo, Gaza, Inhambane, Nampula, Zambezia and Manica | 10-50 | Manufacturer of SHS with:
lights+charger lights+charger+radio lights+charger+radio+TV |
27,000 | PAYGO+
direct sales |
10 W SHS (2 lights+charger)
Down payment: MT 800 (USD 12.6) Monthly instalment: MT 750 (USD 11.8) Duration: 18 months |
| Ignite | 2020 | Zambezia and Niassa | 12-400 | Distributor | 3000 | PAYGO+
direct sales |
|
| Epsilon | 2018 | Manica and Tete | 6 | Distributor of Greenlight Planet’s Sun King Home 60 EasyBuy.
SHS with 3 lamps+battery+USB port |
2500 | PAYGO+
direct sales |
6 W SHS (3 Lights+ charging port)
Down payment: MT 1625 (USD 27) Monthly instalment: not available Duration: 3, 6 or 12 months |
| Digitech | 2020 | Gaza, Inhambane, Nampula, Cabo Delgado | 4-400 | Distributor | 500 | PAYGO+
direct sales |
Donor programmes
There are many international energy programmes that aim to provide electricity to rural households using SHS. These programmes provide subsidies and grants to SHS companies targeting the high cost of market entry in mostly rural and remote geographical locations.
For a list of all active donor programmes in Mozambique, please see here. For a list of financing opportunities (whenever available), please click here.
Some of the major donor programmes that provide funding and support for SHS are highlighted below:
EnDev Mozambique is a multi-donor programme that supports SHS companies by using a results-based financing mechanism. In 2019, it provided access to electricity to 229,300 people by supporting PAYGO companies, mini-grid operators and grid densification programme[6]. Along with financial support, EnDev also capacitates private companies by offering business development services targeted at improving the bankability and growth of private sector.
Green People's Energy Mozambique (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 nine African countries with a special focus on decentralised renewable energy and participation of local municipalities, cooperatives and local companies[7].
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[8]. GBE's GreenSkills4Dev project offers online courses, live virtual workshops and hands-on practical training on different renewable energy topics including solar. The project is also collaborating with the Eduardo Mondlane University to offer Blended Learning Master Degree and is supporting local institutes to set up renewable energy trainings.
World Bank’s ProEnergia programme aims to connect a total 250,000 households to the grid by the end of 2024. Specific targets related to SHS are[9]:
- mobilise private companies using RBF to provide 18,000 households with access to electricity using SHS.
- assisting Fundo de Energia (FUNAE) to adopt the Lighting Global quality standards for SHS for Mozambique[9]
BRILHO, funded by UK Aid, provides financial support and technical assistance to the private sector for off-grid electrification with SHS and mini grids.. The fund is divided into two mechanisms: catalytic grants and results-based financing (RBF)[10]. One of the companies that have already received funding form BRILHO is Ignite Power[11].
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
References
- ↑ Hodgkinson and Smeshko, “Challenges in the Solar Home Industry in Mozambique.”
- ↑ Greenlight, “Mozambique – Off-Grid Energy Market Assessment.”
- ↑ Lighting Global et al., “Global Off-Grid Solar Market Report Semi-Annual Sales and Impact Data | July-December 2020”; GOGLA et al., “Global Off-Grid Solar Market Report Semi-Annual Sales and Impact Data | January - June 2020.”
- ↑ No data was recorded for the first quarter of 2018 and 2019 due to confidentiality of the data i.e for the data to be considered, there has to be more than three companies taking part in the GOGLA survey. Thus, this section only shows the data from 2017 and 2020 for comparison
- ↑ 5.0 5.1 5.2 “ALER - Resumo Renovaveis Em Mocambique 2021.”
- ↑ EnDev, “EnDev Mozambique.”
- ↑ Giz, ‘Green People’s Energy’, accessed 27 May 2021, https://www.giz.de/en/worldwide/77417.html.
- ↑ GBE, ‘Green People’s Energy for Africa – Mozambique’, Green People’s Energy for Africa, accessed 7 June 2021, https://gruene-buergerenergie.org/en/countries/mozambique/.
- ↑ 9.0 9.1 World Bank, “Mozambique - Energy for All (ProEnergia) Project.”
- ↑ “BRILHO.”
- ↑ News and Karie, “Ignite Power Secures Funding from the BRILHO Programme to Expand Operations throughout Mozambique.”
