EDM says Mozambique should continue to be a power generation hub

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EDM says Mozambique should continue to be a power generation hub

11:09 CAT | 19 Dec 2017

Powerlines EDM, in File CoM

The chairman of EDM’s board of directors, Mateus Magala, says Mozambique should continue to be an energy generator in the region and would invest about US$5.15 billion in five new projects over the next five years.

Among the planned initiatives is a power line between Mozambique and Malawi, financial planning for which is expected to be concluded in 2018, with operation seen for 2021. In addition to Malawi, Magala foresees interconnection with other countries in the region.

Noting that Mozambique has the largest potential for energy generation in sub-Saharan Africa ( at around 187 Gigawatts), Magala pointed out that the most important factor at the moment was that the country could transform potential into real production.

“The problem we have in Mozambique is that we always look at our potential and do not go beyond this. What we have to do is to stop talking about potential and transform the resources that we have into real production,” he said.

Talking to journalists in Maputo, Magal said it was important thing that tariffs should reflect the costs of production or acquisition of the current.

He noted that Mozambique had been dominating the region’s energy export market for a short time, but the slowdown in the South African economy had resulted in excess capacity of about 7,000 MW. Paradoxically, the region has an energy deficit of 10,000 MW, but lack of interconnection between countries meant available energy went unused.

Magala was particularly concerned about surplus electricity supply in South Africa, which ended up dumping it to detriment of other regional energy producers.

Another point he addressed had to do with his efforts to reduce losses and recover debts from some of the countries in the region.

“Here I must say that it is egregious how some African countries do not honour the rules of the game, above all, in paying for the energy they have consumed. Currently, EDM is owed US$ 100 million, and one of the largest debtors is ZESCO Zambia, which has not paid debts of more than two years standing,” Magala said.

Source: Notícias