On-grid, off-grid: the double-sided solar solution for Mozambique
Source：PV Magazine
From：Mozambique
Update Time：2024/02/04
Mozambique’s renewable energy landscape is in its infancy, with 60 MW of installed solar capacity in 2022. However, the Mozambican government have a vision for the country, based on clean electrification for all.
The southern African nation possesses serious solar wealth, with 23 TW of its 23,026 GW estimated renewable potential attributed to solar. Despite economic challenges and high inflation, coupled with the shocks of Covid-19 and the Russian war in Ukraine rippling across the world, Mozambique continues to show an increasing appetite for renewables, both on and off the grid.
Shining energy landscape
Over the past two decades, Mozambique has seen steady economic growth, combined with a suite of actions aimed at strengthening the energy sector. The introduction of the Electricity Law in 1997 opened the way to greater participation of the private sector, including the facilitation of Power Purchase Agreements (PPAs).
More recent reforms, including an update of the Electricity Law in 2022 that specifically addresses renewable energy and new off-grid regulations, have led to an even more investor-friendly landscape. The Power Infrastructures Master Plan 2018-2043 expects that 50% of energy generation in 2043 will come from renewable energy sources. Under this new plan, 125 MW of solar is in development, of which 60 MW has already been built. These projects have until now all taken the form of a Public Private Partnership (PPP) model with direct negotiations. A number of plants have begun construction in 2022 and 2023, soon to be followed by at least three others, for which the PPAs have already been signed.
Another positive step was the establishment of the first Renewable Energy Auctions Programme, PROLER, set up by the Government of Mozambique in 2020 and funded by the European Union. This programme provides a clear statement from the Government of Mozambique, ensuring that renewable energy projects follow competitive and transparent procurement processes. The first tender under the programme was the Dondo solar power plant which was won by Independent Power Producer (IPP), Total Eren (now acquired by Total Energies), with a tariff of $52.45/MWh, and is supported by Electricidade de Moçambique (EDM) and the French Development Agency (AFD). The project involves the design, financing, construction and operation of a 40 MWp solar photovoltaic power plant in the Dondo district, about 30 km from the port city of Beira. The plant will generate electricity to feed into the grid of EDM and is due to start construction before the end of 2023.
The PROLER programme is a game changer for promoting private sector investment in renewables in Mozambique. The set up ensures investor confidence through feasibility studies, and the facilitation of optional financial packages and guarantees. A transparent bidding process promotes competition between investors, delivering the lowest possible electricity tariffs to the end consumer. Future tenders are expected to be announced in Q4 of 2023, including the selection of two independent power producers for two 30 MW solar photovoltaic power plants and one 50 MW wind power plant.
But Mozambique has an enormous challenge that spreads far beyond where the national grid ends.
Source: https://www.pv-magazine.com/2023/08/21/on-grid-off-grid-the-double-sided-solar-solution-for-mozambique/