Energy Access Stakeholder Workshop in Maputo

Background

In March 2021, energypedia received a grant from the Green People’s Energy for Africa, Mozambique to promote knowledge exchange and sharing among the renewable energy experts in Mozambique. To achieve this goal, the energypedia team has been working virtually with the RE community and have developed a centralised knowledge platform called Mozambique Off-grid Knowledge Hub as well as many webinars and deep dives focused on networking and information exchange. During our engagement with the RE sector, two gaps were identified 1) need to provide a neutral space to bring together the private sector for discussing the key challenges and opportunities in the sector and 2) need for more expert interviews to complement as well as supplement the information on the Mozambique Hub.

Against this background, the energypedia team planned a visit to Maputo, Mozambique from 04 Nov to 14 Nov to organise a workshop for the RE sector as well as meet the key energy experts for a 1-1 meeting to understand the sector as well as jointly explore opportunities for future collaboration.

Stakeholder Workshop

Energypedia together with our partner, AMER organised an in-person event for the energy access sector in Mozambique. This event aimed to bring the energy access sector together to discuss on key issues and opportunities. Unlike other events, this event was community driven i.e. a pre-event was held to bring the community together in an online meeting where they had the possibility to share their views on the needs of the sector and propose the topics to be discussed during the in-person event. The pre-event held on 1^st of November 2022, some of the participants.

The event had in total 27 private sector representatives (both solar and clean cooking) who were divided into three working groups to discuss on productive use of energy, reaching last-mile consumers and financing options for the last mile consumers. These topics were selected based on the survey results from past webinars as well as discussed during the pre-event on 01 November.

The event kicked off with welcome remarks from energypedia, AMER and GBE. It was then followed by a short presentation from energypedia on the current market landscape for solar and clean cooking sector. The aim of the presentation was to provide up-to-date information and a common understand of the two sectors as we had audience from both of them.  Energypedia also showcased the Mozambique Off-grid Knowledge Hub and how the participants could contribute to the hub. Examples of case studies from different companies were shared to encourage other companies to join the hub. After the presentation, the audience went into a networking break where they had an opportunity to interact and exchange with each other. After the networking break, the audience was divided into three working groups. Each working group was assigned a moderator and a note taker. The moderator was responsible for facilitating the discussion while the note taker was taking notes during the discussion. Both the moderators and the note takers were individually briefed before the event. The moderators also received a set of guiding questions for facilitating the discussion in their working groups. At the end of the discussions, each group presented their key findings to the other groups. All the results from the workshop will also feed into the different sections/chapters of the Mozambique Off-grid Knowledge Hub.

Round Table 1: Productive use of energy in Mozambique

Moderation:

Ruben Morgado

Discussion:

Abuchamo Dário Maputo – GetInvest (Finaciador)

Samson Jangaia – Sun Power (Fornecedor e Instalador)

Edvânia Ana Paulino D'Uamba – Logos Industrias (Fornecedor e Instalador)

Leusio Maungue – GIZ (Financiador)

João Paulo Zimba – Burn (Produtor de fogão Melhorado)

Charle Wilkinson – Arc Power (projectista e implementador)

Joaquim Magalhães – Arc Power (projectista e implementador)

Cedrick Lemarie – Epilson Solar (Desenvolvedor)

Miguel Sottomayor – Membro de Regressão da AMER e consultor em Electrificação Rural

Ana Dionência Munguambe – Energypedia

What comes to mind when you hear “Productive use of energy”?

• Self-consumption
• Scaling
• Generation of money
• User profile and production
• Creating jobs
• Value chain
• Distribution of wealth
• Today vs tomorrow

Production + Consumption à Benefits for the community, more oportunities, financial equality

Challenges:

• Subsidies / Financing (Time/Capacity)
• Technological distinction

Knowledge:

• Technical
• Entrepreneurial
• Outreach
  • Technical quality
  • Regulatory framework

Recommendations:

• Promoting knowledge and capacity building
• PPP instead of PUE
• Defining what PUE is in a national context

Round Table 2: End-user financing mechanisms

Moderation:

Erik Laborda

Discussion:

Taira Otédia Pene

Armando Mate - Platina

Luzerio Tivone

Micas Noa Cumbana - Mozcarbon

Israel Pernambuco - Agricoa COOP

ENGIE, MOZCARBON, AGRECOA, PRATICA FOUNDATION, PLATINA Ltd, DYNAMMIS and FAZER.

1.     What are you selling and how do people pay for it? What kind of financing does your company offer? E.g. PAYGO, instalment, cash, etc.

Solar Home System, Solar system for irrigation and for productive use in general, Improved cook stove for charcoal as well as for firewood.

The kind of financing options are:

ENGIE-PAYGO, ARREARS (High end segment); PLATINA Ltd- fixed installments, financing through bank and microfinance; AGRECOA-Cash-direct discounts, Subvention from donors such as FAZER; MOZCARBON-Monthly installments, 3 in urban areas and 6-12 in rural areas, Carbon Credit, they advance two customer incentives (RBF and Carbon Credits); PRATICA FOUNDATION-Subsidy to companies who distribute solar pumping to the end user. (direct aid, installment, RBF, CovidPlus, cash)

2.     Why do you offer this financing or what are your common challenges with this financing option? Do you have recommendations?

Default; Customer portfolio management; PAYGO Transaction’s costs, Infrastructures’ cost, High cost for domestic and productive use (Hybrid systems); Loan management capacity; Degree of dependence on donor incentives; Vandalization of equipment and theft; Deviation of values internally; Lack of knowledge of customer payment methods; Lack of access/coverage to mobile money; Mismatch between product price and customer’s ability to pay/Purchase power;

3.     What would be an ideal financing option in your opinion?

Due to the lack of customer ability to pay the products, and as well the risks that the companies take while trying to sell their products, it is a mutual opinion that the bank should be involved in as a kind of an Insurer, and then of course the ideal financing option would be that in which Donors, Bank and the Companies are involved, because working at 3 earns more. And for certain particular cases such as for PLATINA Ltd the Microfinance would be an option either.

4.     What are the common challenges faced in terms of repayment, loT, asset theft, etc.?

The common challenges happen when the agents go to the field to collect the rest of money and come back and say they don’t have any manner to pay, whereas they have paid already, deviating money. Almost all companies in this tables agreed with this statement.

5.     Do you have any recommendation on how to overcome these challenges?

Some of the key recommendation that we agree are as follows:

ü Universal/Single payment model;

ü Improve the company’s internal management;

ü Training for agents;

ü Customer Education: Payments, Contract, Product

ü Make some agents as Mpesa, E-mola agents or other entity of Mobile money;

ü Involve Banks and Donors

Round Table 3: Strategies to reaching end-users

Moderation:

Xan García

Discussion:

Florencia Saide - Sogepal

Aime Sozinho – Sun Power Engineering

Sheila Bila - AMER

Aldina Sindique – Carbonsink

Gervasio Mavengue - GIZ

Jeppe Lorenzen – Blue Zone

Sofia Nazareth – Ignite

Stela Miambo - energypedia

Charles Nhalungo - energypedia

Sale strategies:

• Commissioned salesforce (sellers and promoters)
• Sales without a quota (Ignite/Sogepal)
• Customer line for verification
• Local regulation
• Web page to search for projects
• Wholesalers:  consignment/commission

Marketing:

• Door-to-door vendors
• Community radio
• Customer line (existing clients)
• Demonstrations (Carbonsink)
• Trade fairs
• Social network/ Social media (Sunpower)

Post-sales:

• Warrantees
• Call-centers – decentralized (Ignite)
• E-waste (Ignite exports damaged systems)

Challenges:

• Wholesalers:  consignment/commission à high risk
• Repossession: re-sales are not subsidized
• Keeping contact with customers
• Dealing with e-waste
• Theft
• Payment methods
• Client profiles