Mozambique Electricity Situation - Revision history

Ranisha: /* Electricity Consumption */

2021-09-12T14:04:59Z

Electricity Consumption

Ranisha: /* Transmission and Distribution (Grid Structure) */

2021-09-12T14:04:03Z

Transmission and Distribution (Grid Structure)

Ranisha: /* Transmission and Distribution (Grid Structure) */

2021-09-12T14:02:00Z

Transmission and Distribution (Grid Structure)

Ranisha: /* Transmission and Distribution (Grid Structure) */

2021-09-12T14:00:56Z

Transmission and Distribution (Grid Structure)

Ranisha at 12:54, 12 September 2021

2021-09-12T12:54:35Z

Ranisha: /* Off-grid Market Situation Overview */

2021-09-12T12:53:41Z

Off-grid Market Situation Overview

Show changes

Ranisha at 12:48, 12 September 2021

2021-09-12T12:48:58Z

Show changes

Ranisha: Created page with "= Overview= Mozambique has undertaken significant efforts in recent years to electrify the country. The electrification rate has increased from 5% in 2001 to 24% in 2017, and..."

2021-09-12T12:23:04Z

Created page with "= Overview= Mozambique has undertaken significant efforts in recent years to electrify the country. The electrification rate has increased from 5% in 2001 to 24% in 2017, and..."

New page

= Overview=
Mozambique has undertaken significant efforts in recent years to electrify the country. The electrification rate has increased from 5% in 2001 to 24% in 2017, and to 29% in 2019. Access to electricity, however, remains low and is mainly focused on urban areas. In 2019, 72% of the urban population had access to electricity compared to 5% of the rural population<ref>World Bank, ‘Mozambique | Data’.</ref>. This imbalance represents an important challenge to achieving country-wide electrification by 2030, considering that the vast majority (63% in 2019) of Mozambique’s population lives in rural areas<ref>Naidoo and Loots, ‘Mozambique / Energy and the Poor – Unpacking the Investment Case for Clean Energy’.</ref>.

= Electricity Situation =
In 1977, two years after Mozambique’s independence, State-Owned utility, Electricidade de Moçambique (EDM), was founded. The purpose of EDM was to act as a unification body for the existing generation centres to promote industrial and agricultural development, as well as improve the extension and quality of household electrification. During the first years of operation, EDM functioned with a corporate management based on profit and later changed to a centralised price setting. However, it was not until the economic re-structuring of Mozambique in 1995, when EDM turned into a public company officially known as “EDM-E.P”<ref>EDM, ‘Legislation | EDM - Electricidade de Moçambique</ref>.

@@ Line 88: / Line 88: @@
 The Mozambican Government is also planning a major transmission project called, Mozambican Integrated Transmission Backbone System (STE). This project will interconnect the isolated power systems and link Tete and Maputo province with extra high voltage transmission lines. Phase 1 of the project will include a 400 KV line connecting Vilanculos with Maputo and three new sub-stations in Vilanculos, Chibuto and Matalane<ref>AfDB, ‘Mozambique-Temane Transmission_Project , Mozambique Integrated Transmission Backbone System (STE_Project), Phase 1- Vilanculos – Maputo – ESIA Summary</ref> and is expected to commence in late 2021<ref>Africa, ‘Linking Electricity to Economic Growth and Energy Security</ref>.
-=== Electricity Consumption ===
+== Electricity Consumption ==
 The table below shows the most recent energy indicators reported by the IEA. In 2018, the total primary energy supply was 10.43 Mtoe, from a total of 20.23 Mtoe produced that year. Final electricity consumption was only 13.63 TWh, however, this number has increased drastically by more than 2000% since 1990<ref name=":4">IEA, ‘Mozambique - Countries & Regions’</ref>.
 {| class="wikitable"
@@ Line 125: / Line 125: @@
 Source: IEA; 2018<ref name=":4" />
-=== Electricity Tariffs ===
+== Electricity Tariffs ==
 EDM offers different tariff options. The following table shows the current prices (in MZN/kWh) for low voltage use for households and smallholder farmers. These tariffs are uniform across the country <ref name=":5">EDM, ‘Electricity Tariffs | EDM - Electricidade de Moçambique</ref>.
 {| class="wikitable"
@@ Line 213: / Line 213: @@
 As a measure to drive private investments in the energy sector, Independent Power Producers (IPP) were introduced in 2015. However, without a strong financial framework and clear business models, IPPs are expected to face the same fate as EDM and will be compelled to look for other forms of international funding<ref name=":1" />.
-=== Power Shortage/Load-shedding ===
+== Power Shortage/Load-shedding ==
 The electricity service suffers from a circular problem. While electricity demand in Mozambique appears low, it is at an increase especially considering the projected growth in population. The IEA projects a primary energy demand of over 20 Mtoe by 2030 according to current stated policies, and a total population of 43 million by 2030 and 55 million by 2040. These factors result in electricity demand exceeding the share of electricity generated that is not for export, affecting business with South Africa and other countries<ref>Africa Energy Outlook 2019</ref>. Additionally, '''losses of 27% of the generated power''', due to limited available technical staff and delays in the maintenance of the grid aggravate the already insufficient power supply<ref name=":3" />.  As a measure to improve the conditions of the grid, EDM has programmed a series of scheduled outrages in 2018 for maintenance of the power system<ref>EDM, ‘Scheduled Outages | EDM - Electricidade de Moçambique</ref>.
-=== Access to the Grid / Grid Densification ===
+== Access to the Grid / Grid Densification ==
 Access to electricity provided by EDM has increased from 8% in 2006 to 31% in 2018, which translates into more than 1.89 million customers<ref name=":7">Mozambique Energy for All ProEnergia Project</ref>. At the end of 2020, on-grid electrification rate increased to 34%<ref name=":3" />. However, grid connection is mostly concentrated in urban areas and scarce in poor rural communities. Geographically, Southern provinces close to Maputo Cidade i.e Maputo (62%), Gaza (40%), Sofala (37%) and Manica (34%) have higher electrification rate compared to northern provinces such as Tete (26%), Cabo Delgado (26%), Nampula (25%), Zambezai (18%) and Niassa (17%). Overall, Maputo city has the highest electrification rate of 95% (based on Finscope survey 2019)<ref>Finscope, ‘Mozambique: Finscope Consumer Survey Report 2019</ref>.
 Mozambique is one of the poorest countries in the world and many Mozambicans although living to the national grid do not have access to it due to the high connection fee. EnDev Mozambique has been supporting EDM with its grid densification programme and this effort made it possible for the Government of Mozambique to waive the connection fees in Dec 2020<ref>Domestic Connection Fees Abolished in Mozambique</ref>. Nevertheless, extending the national grid to the rural remote communities is not a viable business solution as it requires large investment and the rural communities are not able to pay a tariff that can cover up this investment cost<ref>EDM, ‘EDM Strategy 2018-2020’</ref>.
-=== Rural Electrification ===
+== Rural Electrification ==
 Mozambique’s Fundo de Energia (FUNAE), is the public institution responsible for off-grid rural electrification with a special focus on renewable energy. Since its foundation in 1997 with monetary support from EDM, FUNAE has provided access to electricity to 580 schools and 561 health centres in 260 villages who previously relied on either kerosene or candles for lighting<ref name=":7" />. In 2019, 5% of the total rural population had access to electricity<ref name=":0" />. However, since more than half of Mozambique’s population lives in rural communities, this increase is still low, posing a challenge to achieve the goal of electrifying all Mozambican households by 2030.
@@ Line 228: / Line 228: @@
 For detail information about the energy access situation (both on and off grid), rural electrification plan, access to energy for cooking please refer to the chapter on Energy Access in Mozambique.
-=== Off-grid Market Situation Overview ===
+== Off-grid Market Situation Overview ==
 For a detail insights into the market scoping and potential of off-grid technologies in Mozambique, please refer to the folowing technology portals:

@@ Line 79: / Line 79: @@
 === Transmission and Distribution (Grid Structure) ===
 The map below shows the state of the transmission grid across the country in 2016. The provinces of Tete, Sofala and Maputo have the best grid connectivity. In 2016 there were already four substations planned for Beira, three for Maputo, and more spread throughout Mozambique. The southern grid network is not currently connected to the north and central networks; instead, the inter-connector with South Africa is used to power the city of Maputo. '''Thus, majority of the electricity generated in the North is exported to South Africa and then re-imported'''<ref>Afdb_2017_abr_mini-Grid-Market-Opportunity-Assessment-Mozambique.Pdf</ref>.
@@ Line 84: / Line 85: @@
 * Northern-central: 220 kV transmission lines from Songo to Nampula and then continuing at 110 kV to Nacala. 110 kV transmission lines from Chicamba and Mavuzi hydropower plants to Beira- Manica corridor.
-* Southern: 110 kV transmission lines from Maputo to XaiXai, Chokwe and Inhambane.
+* Southern: 110 kV transmission lines from Maputo to XaiXai, Chokwe and Inhambane.[[File:North and Southern Grid Map of Mozambique.png|thumb|Source: Map of Mozambique highlighting the North-central and Southern grid |alt=]]
 The Mozambican Government is also planning a major transmission project called, Mozambican Integrated Transmission Backbone System (STE). This project will interconnect the isolated power systems and link Tete and Maputo province with extra high voltage transmission lines. Phase 1 of the project will include a 400 KV line connecting Vilanculos with Maputo and three new sub-stations in Vilanculos, Chibuto and Matalane<ref>AfDB, ‘Mozambique-Temane Transmission_Project , Mozambique Integrated Transmission Backbone System (STE_Project), Phase 1- Vilanculos – Maputo – ESIA Summary</ref> and is expected to commence in late 2021<ref>Africa, ‘Linking Electricity to Economic Growth and Energy Security</ref>.
 === Electricity Consumption ===
 The table below shows the most recent energy indicators reported by the IEA. In 2018, the total primary energy supply was 10.43 Mtoe, from a total of 20.23 Mtoe produced that year. Final electricity consumption was only 13.63 TWh, however, this number has increased drastically by more than 2000% since 1990<ref name=":4">IEA, ‘Mozambique - Countries & Regions’</ref>.

@@ Line 87: / Line 87: @@
 The Mozambican Government is also planning a major transmission project called, Mozambican Integrated Transmission Backbone System (STE). This project will interconnect the isolated power systems and link Tete and Maputo province with extra high voltage transmission lines. Phase 1 of the project will include a 400 KV line connecting Vilanculos with Maputo and three new sub-stations in Vilanculos, Chibuto and Matalane<ref>AfDB, ‘Mozambique-Temane Transmission_Project , Mozambique Integrated Transmission Backbone System (STE_Project), Phase 1- Vilanculos – Maputo – ESIA Summary</ref> and is expected to commence in late 2021<ref>Africa, ‘Linking Electricity to Economic Growth and Energy Security</ref>.
-[[File:Grid Map of Mozambique.png|none|thumb|Figure: Map of Mozambique showing transmission grid and distribution lines ]]
+[[File:Grid Map of Mozambique.png|thumb|Figure: Map of Mozambique showing transmission grid and distribution lines |alt=|left]]
-[[File:North and Southern Grid Map of Mozambique.png|none|thumb|Source: Map of Mozambique highlighting the North-central and Southern grid ]]
+[[File:North and Southern Grid Map of Mozambique.png|thumb|Source: Map of Mozambique highlighting the North-central and Southern grid |alt=|left]]
 === Electricity Consumption ===
@@ Line 178: / Line 178: @@
 Another alternative is the use of a pre-paid system called CREDELEC. This system allows users to have control over how much they want to spend in a specific time period by not being forced to pay a monthly fee. This avoids the risk of sudden disconnection due to lack of payment. Purchase options for pre-paid CREDELEC include scratch cards that are available in convenience stores, supermarkets, or by paying directly at EDM ATMs. In 2020, about 78% of electric energy consumers (more than 671,322 clients) got billed through the CREDELEC system<ref name=":6" />.
-[[File:CREDELEC.png|none|thumb|File:CREDELEC meter<ref name=":6" />]]
+[[File:CREDELEC.png|thumb|File:CREDELEC meter<ref name=":6" />|alt=]]
 The following table shows the current tariffs (in MZN/kWh) for major consumers for commercial and agricultural activities.
 {| class="wikitable"

@@ Line 87: / Line 87: @@
 The Mozambican Government is also planning a major transmission project called, Mozambican Integrated Transmission Backbone System (STE). This project will interconnect the isolated power systems and link Tete and Maputo province with extra high voltage transmission lines. Phase 1 of the project will include a 400 KV line connecting Vilanculos with Maputo and three new sub-stations in Vilanculos, Chibuto and Matalane<ref>AfDB, ‘Mozambique-Temane Transmission_Project , Mozambique Integrated Transmission Backbone System (STE_Project), Phase 1- Vilanculos – Maputo – ESIA Summary</ref> and is expected to commence in late 2021<ref>Africa, ‘Linking Electricity to Economic Growth and Energy Security</ref>.
 === Electricity Consumption ===
@@ Line 176: / Line 178: @@
 Another alternative is the use of a pre-paid system called CREDELEC. This system allows users to have control over how much they want to spend in a specific time period by not being forced to pay a monthly fee. This avoids the risk of sudden disconnection due to lack of payment. Purchase options for pre-paid CREDELEC include scratch cards that are available in convenience stores, supermarkets, or by paying directly at EDM ATMs. In 2020, about 78% of electric energy consumers (more than 671,322 clients) got billed through the CREDELEC system<ref name=":6" />.
+[[File:CREDELEC.png|none|thumb|File:CREDELEC meter<ref name=":6" />]]
 The following table shows the current tariffs (in MZN/kWh) for major consumers for commercial and agricultural activities.
 {| class="wikitable"

← Older revision		Revision as of 12:54, 12 September 2021
Line 246:		Line 246:

	== References ==		== References ==
		+	<references />
		+	[[Category:Mozambique]]
		+	[[Category:Electricity]]
		+	[[Category:Energy Access]]