AfDB Approves $2.5m Grant To Boost Renewable Energy Penetration In Mozambique

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The African Development Bank (AfDB) has provided a grant of $2.5million to the Mozambican government to enhance the penetration of renewable energy resources.

The grant, which comes from the Sustainable Energy Fund for Africa (SEFA), administered by the Bank, will be used to implement the Mozambique Renewable Energy Integration Program (MREP), the bank said in a release yesterday.

“With the support of the Sustainable Energy Fund for Africa, Mozambique’s capacity to integrate larger shares of variable renewables will increase its efforts to become a major regional electricity supplier,” said Mr. Daniel Schroth, director of the AfDB’s renewable energy and energy efficiency department. He added, “Given that Mozambique is one of the most highly climate-vulnerable countries in the world, the project will help build a more sustainable and resilient generation infrastructure.”

The funding will assist the national electricity company to provide financial support for technical, economic, environmental and social feasibility studies for the development of a solar floating plant in Chicamba reservoir.

In addition, it will support funding for a feasibility study for energy battery systems Storage in up to 10 sites, as well as capacity building for EDM´s personnel; and support for preparation.

“We are very excited to launch the activities under the Sustainable Energy Fund for Africa in Mozambique, which comes with a set of very strategic and innovative projects, that will contribute to diversify the energy matrix ad fund a study on storage needs, that will enable the development of more renewable energy projects,” said Marcelino Gildo Alberto, chairman of EDM, the beneficiary.

“The support under SEFA also includes a robust capacity building program, that will enable our personnel to develop strategic skills related to the development and management of renewable energy projects,” he added.

The donation will also be used to conduct studies to increase the share of variable renewable energy production in Mozambique’s energy mix. Feasibility studies to develop floating photovoltaic solar energy will be conducted in existing EDM hydropower assets.

Increasingly affected by severe and sudden cyclones, storms, and prolonged drought periods, Mozambique is endowed with abundant energy from renewable and fossil resources. the last decade, the energy sector in Mozambique has made considerable progress: the country is a net exporter of electricity despite low access rates (57% in urban areas and 13% in rural areas).

With 187 gigawatts, Mozambique has the most significant generation potential in southern Africa, thanks to untapped resources in coal, hydroelectricity, gas, wind, and solar energy. Hydropower currently accounts for about 81% of installed capacity.

But natural gas and renewable energy sources are set to take a growing share of Mozambique’s energy mix.


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