Mozambique provides over 200,000 new connections to the electricity grid in three months
Europe-Mozambique Investment Forum: Renewables in Mozambique 2021
1:24 CAT | 25 Mar 2021
Image; Twitter / @AMER_MOZ
“Renewables in Mozambique 2021” was the theme of the Forum held on 22 and 23 March, organized jointly by ALER – Lusophone Renewable Energy Association, AMER – Mozambican Renewable Energy Association, with the support of GET.invest Mozambique – funded by the European Union and Germany, and part of the European program GET.invest. The event had the institutional support of ARENE – Electricity Regulator Agency, EDM – Electricity of Mozambique and FUNAE – Energy Fund.
This high-level event had over 600 registered participants, including representatives of local Mozambican companies, several international companies, financial institutions, and other public and private entities interested in the renewable sector in Mozambique. The Forum allowed the debate on the status of the renewable energies in Mozambique, the presentation of financing and business opportunities as well as exchanges between local and international companies and financiers to establish partnerships necessary for the development of projects in the sector.
At the opening session, His Excellency the Minister of Mineral Resources and Energy, Max Tonela said that the revision of the Electricity Law and the Public Private Partnerships (PPP) law will give greater visibility and impetus to the renewable energy sector in the sense that it will “(…) establish a solid regulatory framework that guarantees a greater private participation in this type of investments, which are fundamental to fulfill the goals we have set, namely to guarantee universal access by 2030”.
On his side, the European Union Ambassador to Mozambique, António Sánchez-Benedito Gaspar, highlighted the European Union’s commitment to leading the fight against climate change globally and its commitment to support African countries in the transition to renewable energy. In reference to Mozambique, the Ambassador showed optimism, because “Mozambique, in addition to having one of the greatest potentials for renewable energies in the Southern Africa region, (the country) is taking steps in the right direction with initiatives such as PROLER which ensures transparency, competition and legal certainty for investors”. The Ambassador also referred to other initiatives made available by the European Union to support the country’s energy transition, such as ProEnergia, the Energy Resource Center, ElectriFi, FASER, and GET.invest.
Lothar Freischlader, Germany’s Ambassador to Mozambique, stressed that “German Development Cooperation has historically played an important role in promoting access to energy in Mozambique and energy has recently been promoted to a focal area of cooperation”. This support is substantiated by the financing of the EnDev program, Green People’s Energy, GET.invest, GET.transform, the renewable energy credit line granted by BCI, and GET FiT, whose tender is expected to be launched next year.
The Forum was divided into four round tables focused on the discussion of the Briefing: Renewables in Mozambique 2021, available for download here and the animations here. This document was published by ALER and AMER, with the support of GET.invest, and compiles and organizes the most relevant and current renewable energy market information.
At round table 1 – Mozambique Renewable Energy Sector Overview – Minister Tonela reinforced the priority given to renewable energies, with emphasis on off-grid systems. In response to the concerns of sector actors, the Minister guaranteed that discussions are underway with the Ministry of Finance to find a solution to the tax issues regarding solar home systems.
Carlos Xerinda, Director of the Legal Affairs Department at ARENE, participated in round table 2 – Independent Energy Producers. In reference to the PROLER tender, he stated that “the challenge is high for a very young regulator and it is a process that will take time, but we are committed to bringing what is expected of us to fruition”. He also announced the intention of implementing a one-stop shop at ARENE to facilitate procedures and institutional coordination.
At round table 3, covering the topic of Mini-grids, António Saide, President of FUNAE’s Board of Directors, highlighted the significant advances in regulatory terms: “We want to believe that in the second half of the year we will already have the package ready to be perfected and with all stakeholders to make their contribution”. He added that, “as FUNAE we take the private sector as a partner looking together for the objectives that we intend to achieve, as they are at the forefront of off-grid solutions in matters of solar and residential systems”.
Finally, in round table 4, Solar Home Systems and Clean Cooking were discussed. Rosario Fischer, Coordinator of the Energy Cluster at GIZ, mentioned that EnDev’s support to the private sector has enabled companies in the sector to be prepared to properly manage and offer a complex and results-based financing mechanism such as FASER. She also mentioned that EnDev offers technical and financial assistance to companies that are not yet mature enough, operating in the sector. In addition, she said that in response to the Covid-19 impacts, GIZ introduced support mechanisms from Norway, Germany and the European Union to ensure business continuity for companies, indirectly supporting families whose ability to pay was seriously affected.
In the afternoon of the two days, 120 one-to-one meetings took place as part of the GET.invest Matchmaking, facilitating contacts, partnerships, and business opportunities.
GET.invest
GET.invest is a European programme that mobilises investment in decentralised renewable energy, supported by the European Union, Germany, Sweden, the Netherlands and Austria. Since 2019, the programme has been operating a country window in Mozambique funded by the European Union and Germany, implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). GET.invest Mozambique is part of PROMOVE ENERGIA – a comprehensive strategy between EU and the Government of Mozambique to support families and companies access to sustainable and affordable energy in rural areas.
ALER
Lusophone Renewable Energy Association, is a non-profit association, whose mission is to promote renewable energy in the Portuguese-speaking countries. ALER undertakes public relations efforts, liasing with government institutions and making the connection between public and private sector, in order to create a favourable regulatory environment. The Association also aims at creating a platform to exchange information reach agreements among all stakeholders, acting as the common voice of renewable energy in Portuguese speaking countries at national and international level.
The priority countries for ALER are the national renewable energy markets in Angola, Cape Verde, Guinea-Bissau, Mozambique and São Tomé and Príncipe.
AMER
Mozambican Renewable Energy Association is a private, non-profit entity, with legal and administrative personality, financial and patrimonial autonomy, constituted for an indefinite period. Founded in 2017, AMER’s mission is to promote renewable energy in Mozambique and aims to play a crucial role in coordinating representation and defending the common interests of all members and serving as an essential instrument for the participation and awareness of the enhancement of renewable energy natural resources for the sustainable development of Mozambique.
Source: Renewables in Mozambique / Europe Mozambique Investment Forum
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