Policy Framework and Energy Access Strategies in Mozambique - Revision history

Fernanda Wynter at 09:40, 25 May 2023

2023-05-25T09:40:03Z

Ranisha: /* Legal Framework */

2022-08-02T14:17:44Z

Legal Framework

Ranisha at 14:12, 2 August 2022

2022-08-02T14:12:05Z

Fernanda Wynter at 11:21, 25 July 2022

2022-07-25T11:21:49Z

Fernanda Wynter at 09:53, 28 June 2022

2022-06-28T09:53:05Z

Ranisha: /* Further Information */

2022-06-03T07:47:29Z

Further Information

Fernanda Wynter at 14:27, 7 March 2022

2022-03-07T14:27:34Z

Fernanda Wynter at 14:10, 7 March 2022

2022-03-07T14:10:10Z

Fernanda Wynter at 14:01, 7 March 2022

2022-03-07T14:01:13Z

Fernanda Wynter at 08:24, 30 September 2021

2021-09-30T08:24:52Z

← Older revision		Revision as of 09:40, 25 May 2023
Line 15:		Line 15:

	ARENE, the Energy Regulation Authority (Autoridade Reguladora de Energia), has the role of handling and coordinating all processes regarding approval for concessions before and after they have been submitted to the Minister for approval.		ARENE, the Energy Regulation Authority (Autoridade Reguladora de Energia), has the role of handling and coordinating all processes regarding approval for concessions before and after they have been submitted to the Minister for approval.
		+
		+	In May 2023, a resolution to this decree was approved which specifies the regulations for interconnection of mini-grids to the national grid, the regulations to standarise the tariff of energy supplied through mini-grids in off-grid areas, the regulation for technical and safety standards, and the regulation for quality of service and commercial relations. The regulation for concessions and a certified model for energy service providers are yet to be published<ref>ARENE - "Energy Regulatory Authority publishes rules that regulate the energy supply subsector in off-grid areas" (2023) https://arene.org.mz/autoridade-reguladora-de-energia-publica-normas-que-regulamentam-o-subsector-de-fornecimento-de-energia-nas-zonas-fora-da-rede/</ref>.

	Another important energy policy document that states the needs of energy access for the population and the productive sectors is Mozambique’s Energy Policy from 1998. Some of its main objectives are to promote economically viable programmes for the development of energy resources, ensure reliable energy supply, and to improve energy access in the domestic sector<ref>Mozambique_Renewable_Energy.Pdf’. https://www.powerutilityleadership.com/wp-content/uploads/2018/02/Mozambique_Renewable_Energy.pdf</ref>. The specifics on the implementation of the policy are better described in Mozambique’s National Electrification Strategy, updated from the Energy Sector Strategy written in 2000.		Another important energy policy document that states the needs of energy access for the population and the productive sectors is Mozambique’s Energy Policy from 1998. Some of its main objectives are to promote economically viable programmes for the development of energy resources, ensure reliable energy supply, and to improve energy access in the domestic sector<ref>Mozambique_Renewable_Energy.Pdf’. https://www.powerutilityleadership.com/wp-content/uploads/2018/02/Mozambique_Renewable_Energy.pdf</ref>. The specifics on the implementation of the policy are better described in Mozambique’s National Electrification Strategy, updated from the Energy Sector Strategy written in 2000.

@@ Line 6: / Line 6: @@
 == '''Legal Framework''' ==
-The prevailing legal instrument for electrification in Mozambique is the [https://www.edm.co.mz/en/website/page/legislation Electricity Law from 1997 (Law n.° 21/97)]<ref>EDM, ‘Legislation | EDM - Electricidade de Moçambique’, accessed 19 May 2021, https://www.edm.co.mz/en/website/page/legislation</ref>. Due to the vital role renewable energy electricity plays in the universal energy access goal, the Electricity Law has been in constant review to ensure technological development and clear tariff mechanisms and business models. With a clearer understanding of the legal framework and the roles of participating stakeholders, the most recent review in 2017 which is yet to be officially published, is expected to improve the involvement of private parties in Mozambique’s energy sector<ref>‘Afdb_2017_abr_mini-Grid-Market-Opportunity-Assessment-Mozambique.Pdf’, https://www.aler-renovaveis.org/contents/lerpublication/afdb_2017_abr_mini-grid-market-opportunity-assessment-mozambique.pdf</ref>. For this reason, the Law on Public-Private Partnerships serves as a guide of cooperation between the public and the private sector.
+The prevailing legal instrument for electrification in Mozambique was the [https://www.edm.co.mz/en/website/page/legislation Electricity Law from 1997 (Law n.° 21/97)]<ref>EDM, ‘Legislation | EDM - Electricidade de Moçambique’, accessed 19 May 2021, https://www.edm.co.mz/en/website/page/legislation</ref> which has been updated in July 2022 to [https://www.lerenovaveis.org/contents/lerpublication/lei-12_2022-lei-de-electricidade.pdf Law n.º 12/2022] to reflect the current social, technical and financial dynamics in Mozambique, with a emphasis on renewables. This law defines the general framework of the power sector and all activities related to production, distribution, transmission, consumption and storage of electricity, including export and import.<ref>Law No. 12/2022. BOLETIM DA REPÚBLICA. https://www.lerenovaveis.org/contents/lerpublication/lei-12_2022-lei-de-electricidade.pdf</ref>
 In December 2021, a new [https://www.lerenovaveis.org/contents/lerpublication/decreto-93-2021_regulamento-de-acesso-a-energia-nas-zonas-fora-da-rede_6586.pdf Regulation for Energy Access in Off-grid Areas]<ref>Government of Mozambique, Decreto n.º 93/2021, Regulamento de Acesso à Energia nas Zonas Fora da Rede<nowiki/>https://www.lerenovaveis.org/contents/lerpublication/decreto-93-2021_regulamento-de-acesso-a-energia-nas-zonas-fora-da-rede_6586.pdf</ref> was published and approved. This new regulation, active since January 24th, 2022, acts as support to the current legal framework in the off-grid energy sector in Mozambique. It is expected that this new framework:

@@ Line 20: / Line 20: @@
 The following table shows the relevant regulations involved in the improvement of energy access in Mozambique.
 {| class="wikitable"
 |Decree n. °93/2021
 |Regulation for Energy Access in Off-Grid Areas

@@ Line 66: / Line 66: @@
 == '''National Strategies and Policies to Improve Energy Access''' ==
-The central goal of national strategies in Mozambique is to achieve countrywide energy access by 2030. The Integrated Power Sector Master Plan from EDM is the main policy for Mozambique. It has a set goal to increase installed capacity to 6,001 MW by 2030 and 20% integration of renewable energy in the grid. The institutional, financial and technical approach to reach these goals is defined by the National Electrification Strategy (ENE)<ref>ALER, ‘Renováveis Em Moçambique’, 2021, <nowiki>https://www.lerenovaveis.org/contents/lerpublication/aler_mar2021_resumo-renovaveis-em-mocambique-2021.pdf</nowiki>.</ref>. Mozambique’s state-owned utility, EDM has developed a strategy as well (often referred to as the Rural Electrification Strategy) to ensure the development of the energy sector in Mozambique and drive its growth as an important market in the Southern African region<ref>‘EDM_STRATEGY_2018_2028.Pdf’, <nowiki>https://www.edm.co.mz/sites/default/files/documents/Reports/EDM_STRATEGY_2018_2028.pdf</nowiki></ref>.
+The central goal of national strategies in Mozambique is to achieve countrywide energy access by 2030. The Integrated Power Sector Master Plan from EDM is the main policy for Mozambique. It has a set goal to increase installed capacity to 6,001 MW by 2030 and 20% integration of renewable energy in the grid. The institutional, financial and technical approach to reach these goals is defined by the National Electrification Strategy (ENE)<ref>ALER, ‘Renováveis Em Moçambique’, 2021, https://www.lerenovaveis.org/contents/lerpublication/aler_mar2021_resumo-renovaveis-em-mocambique-2021.pdf</ref>. Mozambique’s state-owned utility, EDM has developed a strategy as well (often referred to as the Rural Electrification Strategy) to ensure the development of the energy sector in Mozambique and drive its growth as an important market in the Southern African region<ref>‘EDM_STRATEGY_2018_2028.Pdf’, https://www.edm.co.mz/sites/default/files/documents/Reports/EDM_STRATEGY_2018_2028.pdf</ref>.
 These initiatives are based on Sustainable Development Goal (SDG) 7. Read here more about SDG 7 and how energy contributes to the achievement of other SDGs

← Older revision		Revision as of 09:53, 28 June 2022
Line 96:		Line 96:

	One of the resulting initiatives from this strategy is the renewable energy auction mechanism called Promoçao de Leilões de Energias Renovaveis (“Promotion of Renewable Energy Auctions” -PROLER). PROLER is a public tender model launched in 2018, contracted by MIREME and financially supported by the European Union through the AFD – Agence Française de Développement. The mechanism is a driver for private investment in the development of solar and wind projects to be connected to the National Power Grid. There are three solar PV and one wind power projects covered in PROLER’s schedule. The first solar PV project was launched in October 2020 and for the rest of the projects, viability studies will be carried from 2021 to 2022<ref>Government of Mozambique, ‘Programa Nacional de Energia Para Todos: Novas Energias’, n.d., http://proler.gov.mz/wp-content/uploads/2021/01/EDM_Novas-Energias_Brochura_A4.pdf</ref>.		One of the resulting initiatives from this strategy is the renewable energy auction mechanism called Promoçao de Leilões de Energias Renovaveis (“Promotion of Renewable Energy Auctions” -PROLER). PROLER is a public tender model launched in 2018, contracted by MIREME and financially supported by the European Union through the AFD – Agence Française de Développement. The mechanism is a driver for private investment in the development of solar and wind projects to be connected to the National Power Grid. There are three solar PV and one wind power projects covered in PROLER’s schedule. The first solar PV project was launched in October 2020 and for the rest of the projects, viability studies will be carried from 2021 to 2022<ref>Government of Mozambique, ‘Programa Nacional de Energia Para Todos: Novas Energias’, n.d., http://proler.gov.mz/wp-content/uploads/2021/01/EDM_Novas-Energias_Brochura_A4.pdf</ref>.
		+
		+	During the African Energy Forum celebrated in June 2022, EDM partnered with the International Finance Cooperation (IFC) from the World Bank Group to develop four solar PV and battery storage facilities with an expected total production of 50 MW. These plants are planned to be part of the National Grid<ref>AEF, "IFC and EDM Partner to Increase Access to Renewable Energy in Mozambique", https://www.africa-energy-forum.com/press-release-ifc-edm-partner-increase-access-renewable-energy-mozambique</ref>.

	For more information about the National Electrification Strategy and PROLER visit: http://proler.gov.mz/wp-content/uploads/2021/01/EDM_Novas-Energias_Brochura_A4.pdf		For more information about the National Electrification Strategy and PROLER visit: http://proler.gov.mz/wp-content/uploads/2021/01/EDM_Novas-Energias_Brochura_A4.pdf

@@ Line 151: / Line 151: @@
 * [[Mozambique Electricity Situation]]
 * [[Institutional Framework in Mozambique]]
 {{Back to Mozambique Portal}}

@@ Line 1: / Line 1: @@
 {{Back to Mozambique Portal}}
 == '''Introduction''' ==
 This articles provides an overview of the different policies and energy access strategies for electrification and renewable energy in Mozambique.

@@ Line 4: / Line 4: @@
 == '''Legal Framework''' ==
-The prevailing legal instrument for electrification in Mozambique is the [https://www.edm.co.mz/en/website/page/legislation Electricity Law from 1997 (Law n.° 21/97)]<ref>EDM, ‘Legislation | EDM - Electricidade de Moçambique’, accessed 19 May 2021, <nowiki>https://www.edm.co.mz/en/website/page/legislation</nowiki>.</ref>. Due to the vital role renewable energy electricity plays in the universal energy access goal, the Electricity Law has been in constant review to ensure technological development and clear tariff mechanisms and business models. With a clearer understanding of the legal framework and the roles of participating stakeholders, the most recent review in 2017 which is yet to be officially published, is expected to improve the involvement of private parties in Mozambique’s energy sector<ref>‘Afdb_2017_abr_mini-Grid-Market-Opportunity-Assessment-Mozambique.Pdf’, accessed 4 May 2021, <nowiki>https://www.aler-renovaveis.org/contents/lerpublication/afdb_2017_abr_mini-grid-market-opportunity-assessment-mozambique.pdf</nowiki>.</ref>. For this reason, the Law on Public-Private Partnerships serves as a guide of cooperation between the public and the private sector.
+The prevailing legal instrument for electrification in Mozambique is the [https://www.edm.co.mz/en/website/page/legislation Electricity Law from 1997 (Law n.° 21/97)]<ref>EDM, ‘Legislation | EDM - Electricidade de Moçambique’, accessed 19 May 2021, https://www.edm.co.mz/en/website/page/legislation</ref>. Due to the vital role renewable energy electricity plays in the universal energy access goal, the Electricity Law has been in constant review to ensure technological development and clear tariff mechanisms and business models. With a clearer understanding of the legal framework and the roles of participating stakeholders, the most recent review in 2017 which is yet to be officially published, is expected to improve the involvement of private parties in Mozambique’s energy sector<ref>‘Afdb_2017_abr_mini-Grid-Market-Opportunity-Assessment-Mozambique.Pdf’, https://www.aler-renovaveis.org/contents/lerpublication/afdb_2017_abr_mini-grid-market-opportunity-assessment-mozambique.pdf</ref>. For this reason, the Law on Public-Private Partnerships serves as a guide of cooperation between the public and the private sector.
-Another important energy policy document that states the needs of energy access for the population and the productive sectors is Mozambique’s Energy Policy from 1998. Some of its main objectives are to promote economically viable programmes for the development of energy resources, ensure reliable energy supply, and to improve energy access in the domestic sector<ref>Mozambique_Renewable_Energy.Pdf’. Accessed 24 May 2021. <nowiki>https://www.powerutilityleadership.com/wp-content/uploads/2018/02/Mozambique_Renewable_Energy.pdf</nowiki></ref>. The specifics on the implementation of the policy are better described in Mozambique’s National Electrification Strategy, updated from the Energy Sector Strategy written in 2000.
+Another important energy policy document that states the needs of energy access for the population and the productive sectors is Mozambique’s Energy Policy from 1998. Some of its main objectives are to promote economically viable programmes for the development of energy resources, ensure reliable energy supply, and to improve energy access in the domestic sector<ref>Mozambique_Renewable_Energy.Pdf’. https://www.powerutilityleadership.com/wp-content/uploads/2018/02/Mozambique_Renewable_Energy.pdf</ref>. The specifics on the implementation of the policy are better described in Mozambique’s National Electrification Strategy, updated from the Energy Sector Strategy written in 2000.
 The following table shows the relevant regulations involved in the improvement of energy access in Mozambique.
@@ Line 52: / Line 52: @@
 == '''National Strategies and Policies to Improve Energy Access''' ==
-The central goal of national strategies in Mozambique is to achieve countrywide energy access by 2030. The Integrated Power Sector Master Plan from EDM is the main policy for Mozambique. It has a set goal to increase installed capacity to 6,001 MW by 2030 and 20% integration of renewable energy in the grid. The institutional, financial and technical approach to reach these goals is defined by the National Electrification Strategy (ENE)<ref>ALER, ‘Renováveis Em Moçambique’, 2021, <nowiki>https://www.lerenovaveis.org/contents/lerpublication/aler_mar2021_resumo-renovaveis-em-mocambique-2021.pdf</nowiki>.</ref>. Mozambique’s state-owned utility, EDM has developed a strategy as well (often referred to as the Rural Electrification Strategy) to ensure the development of the energy sector in Mozambique and drive its growth as an important market in the Southern African region<ref>‘EDM_STRATEGY_2018_2028.Pdf’, accessed 25 May 2021, <nowiki>https://www.edm.co.mz/sites/default/files/documents/Reports/EDM_STRATEGY_2018_2028.pdf</nowiki>.</ref>.
+The central goal of national strategies in Mozambique is to achieve countrywide energy access by 2030. The Integrated Power Sector Master Plan from EDM is the main policy for Mozambique. It has a set goal to increase installed capacity to 6,001 MW by 2030 and 20% integration of renewable energy in the grid. The institutional, financial and technical approach to reach these goals is defined by the National Electrification Strategy (ENE)<ref>ALER, ‘Renováveis Em Moçambique’, 2021, <nowiki>https://www.lerenovaveis.org/contents/lerpublication/aler_mar2021_resumo-renovaveis-em-mocambique-2021.pdf</nowiki>.</ref>. Mozambique’s state-owned utility, EDM has developed a strategy as well (often referred to as the Rural Electrification Strategy) to ensure the development of the energy sector in Mozambique and drive its growth as an important market in the Southern African region<ref>‘EDM_STRATEGY_2018_2028.Pdf’, <nowiki>https://www.edm.co.mz/sites/default/files/documents/Reports/EDM_STRATEGY_2018_2028.pdf</nowiki></ref>.
 These initiatives are based on Sustainable Development Goal (SDG) 7. Read here more about SDG 7 and how energy contributes to the achievement of other SDGs
@@ Line 59: / Line 59: @@
 === Electric Infrastructures Integrated Master Plan (Plano Director de Infraestruturas Eléctricas 2018-2043) ===
-The main objective is to formulate a comprehensive 25 year national power system development plan for the period between 2018 and 2043, and to make it possible for governmental agencies to have access to the technical information on the planning of power generation, transmission and distribution<ref name=":0">EDM, ‘INTEGRATED MASTER PLAN 2018-2043 | EDM - Electricidade de Moçambique’, accessed 25 May 2021, <nowiki>https://www.edm.co.mz/en/document/reports/integrated-master-plan-2018-2043</nowiki>.</ref>. The plan forecasts a growth on electricity demand in 2043 from 3908 GWh to 35444 GWh and a growth in maximum installed capacity from 655 MW to 5950 MW. With a close cooperation with FUNAE, EDM plans to increase the number of electrified households from 1.3 million in 2017 to 4.6 million by 2043<ref name=":0" />.
+The main objective is to formulate a comprehensive 25 year national power system development plan for the period between 2018 and 2043, and to make it possible for governmental agencies to have access to the technical information on the planning of power generation, transmission and distribution<ref name=":0">EDM, ‘INTEGRATED MASTER PLAN 2018-2043 | EDM - Electricidade de Moçambique’, https://www.edm.co.mz/en/document/reports/integrated-master-plan-2018-2043</ref>. The plan forecasts a growth on electricity demand in 2043 from 3908 GWh to 35444 GWh and a growth in maximum installed capacity from 655 MW to 5950 MW. With a close cooperation with FUNAE, EDM plans to increase the number of electrified households from 1.3 million in 2017 to 4.6 million by 2043<ref name=":0" />.
 The total investment calculated by EDM to fulfil the Master Plan is approx. USD 34 billion. The plan also contains a list of recommendations for the financial management of the private sector and an environmental impact assessment<ref name=":0" />.
@@ Line 72: / Line 72: @@
 .    Drive Mozambique to become a Southern African energy hub
-.    Ensure development of sustainable workforce in the energy sector <ref>‘EDM_STRATEGY_2018_2028.Pdf’. Accessed 25 May 2021. <nowiki>https://www.edm.co.mz/sites/default/files/documents/Reports/EDM_STRATEGY_2018_2028.pdf</nowiki>.</ref>.
+.    Ensure development of sustainable workforce in the energy sector <ref>‘EDM_STRATEGY_2018_2028.Pdf’. https://www.edm.co.mz/sites/default/files/documents/Reports/EDM_STRATEGY_2018_2028.pdf</ref>.
-This strategy proposed the creation of a new policy instrument called the Electrification Account, which is expected to be fully implemented by the Ministry of Economy and Finance by 2020. This new fund will serve as a subsidy instrument in the event that current electricity tariffs are not sufficient to fund the electrification targets on their own<ref>‘Estratégia Nacional de Eletrificação’, n.d., <nowiki>https://rise.esmap.org/data/files/library/mozambique/Documents/Energy%20Access/Mozambique_Rural%20Electrification%20Strategy%202018-30_ENG.docx</nowiki>.</ref>.
+This strategy proposed the creation of a new policy instrument called the Electrification Account, which is expected to be fully implemented by the Ministry of Economy and Finance by 2020. This new fund will serve as a subsidy instrument in the event that current electricity tariffs are not sufficient to fund the electrification targets on their own<ref>‘Estratégia Nacional de Eletrificação’, n.d., https://rise.esmap.org/data/files/library/mozambique/Documents/Energy%20Access/Mozambique_Rural%20Electrification%20Strategy%202018-30_ENG.docx</ref>.
 To know more about the EDM Strategy visit: https://www.edm.co.mz/sites/default/files/documents/Reports/EDM_STRATEGY_2018_2028.pdf
 === National Electrification Strategy (ENE) - Energy for All ''(Programa Nacional de Energia Para Todos)''===
-The Government of Mozambique launched this strategy to provide electricity access to more than 10 million Mozambicans by 2024. This program defines the roles of the four main institutions responsible for reaching the electrification goals: MIREME as a process planner; EDM as the main institution implementing projects to improve energy access within the grid and its expansion; FUNAE as the main body responsible for rural electrification; and the Ministry of Economy and Finance as an allocator of funds for the projects in the scope<ref>EDM, ‘Lançado Programa Nacional de Energia Para Todos Até 2030 | EDM - Electricidade de Moçambique’, accessed 25 May 2021, <nowiki>https://www.edm.co.mz/pt/website-mobile/article/not%C3%ADcia/lan%C3%A7ado-programa-nacional-de-energia-para-todos-at%C3%A9-2030</nowiki>.</ref>.
+The Government of Mozambique launched this strategy to provide electricity access to more than 10 million Mozambicans by 2024. This program defines the roles of the four main institutions responsible for reaching the electrification goals: MIREME as a process planner; EDM as the main institution implementing projects to improve energy access within the grid and its expansion; FUNAE as the main body responsible for rural electrification; and the Ministry of Economy and Finance as an allocator of funds for the projects in the scope<ref>EDM, ‘Lançado Programa Nacional de Energia Para Todos Até 2030 | EDM - Electricidade de Moçambique’, https://www.edm.co.mz/pt/website-mobile/article/not%C3%ADcia/lan%C3%A7ado-programa-nacional-de-energia-para-todos-at%C3%A9-2030</ref>.
-One of the resulting initiatives from this strategy is the renewable energy auction mechanism called Promoçao de Leilões de Energias Renovaveis (“Promotion of Renewable Energy Auctions” -PROLER). PROLER is a public tender model launched in 2018, contracted by MIREME and financially supported by the European Union through the AFD – Agence Française de Développement. The mechanism is a driver for private investment in the development of solar and wind projects to be connected to the National Power Grid. There are three solar PV and one wind power projects covered in PROLER’s schedule. The first solar PV project was launched in October 2020 and for the rest of the projects, viability studies will be carried from 2021 to 2022<ref>Government of Mozambique, ‘Programa Nacional de Energia Para Todos: Novas Energias’, n.d., <nowiki>http://proler.gov.mz/wp-content/uploads/2021/01/EDM_Novas-Energias_Brochura_A4.pdf</nowiki>.</ref>.
+One of the resulting initiatives from this strategy is the renewable energy auction mechanism called Promoçao de Leilões de Energias Renovaveis (“Promotion of Renewable Energy Auctions” -PROLER). PROLER is a public tender model launched in 2018, contracted by MIREME and financially supported by the European Union through the AFD – Agence Française de Développement. The mechanism is a driver for private investment in the development of solar and wind projects to be connected to the National Power Grid. There are three solar PV and one wind power projects covered in PROLER’s schedule. The first solar PV project was launched in October 2020 and for the rest of the projects, viability studies will be carried from 2021 to 2022<ref>Government of Mozambique, ‘Programa Nacional de Energia Para Todos: Novas Energias’, n.d., http://proler.gov.mz/wp-content/uploads/2021/01/EDM_Novas-Energias_Brochura_A4.pdf</ref>.
 For more information about the National Electrification Strategy and PROLER visit: http://proler.gov.mz/wp-content/uploads/2021/01/EDM_Novas-Energias_Brochura_A4.pdf