How is Mozambique diversifying its energy mix?

Mozambique is diversifying its energy mix by inviting private The output of the power project developers to sell electricity to the state-owned in this case study will be national power utility, Electricidade de Moçambique (EDM), a 25-year power purchase as independent power producers (IPPs). This Model Business (PPA) to EDM.

When did Globeleq & Mozambique launch a solar power plant?

Our solar power plant in Cuamba was inaugurated in September of 2023. It marked another milestone for Globeleq and Mozambique, as it was the first IPP to integrate a utility-scale energy storage system.

Is battery storage a key technology for Mozambique's future?

Globeleq sees battery storage as a key technology for Mozambique’s future. Storage costs are expected to continue decreasing, so those systems will become more competitive and will be able to contribute more.

Should Mozambique export electricity?

One of the big challenges of Mozambique is its size and shape, which make the transportation of electrons across the country quite expensive. Exporting electricity would bring foreign currency that can support investments in domestic transmission and distribution infrastructure.

Why should Mozambique be a regional power supplier?

First, to ensure that Mozambique has reliable and cost-effective power generation capable of meeting its 2030 electrification goals. Second, to establish Mozambique as a regional power supplier of choice. South Africa has a critical shortage of electricity, and Zambia and Zimbabwe also require power.

Who should invest in a project in Mozambique?

Utility investors such as Engie, EDF or Enel – who have deep sources of low-cost capital – might accept 8% equity IRR as they also earn revenues as EPC and O&M contractors and have long-term strategic objectives. Purely financial investors such as AIIM will likely require a minimum equity IRR of 15% to invest in a project in Mozambique.