Mozambique: 2023 power exports grew 9%, to more than 30% of total production

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Mozambique: 2023 power exports grew 9%, to more than 30% of total production

2:27 CAT | 17 May 2024

File photo: Macauhub

Electricity exported by Mozambique to neighbouring countries grew 9% year-on-year in 2023 to a new maximum, according to the report and accounts of state-owned Eletricidade de Moçambique (EDM), which underlines the country’s asserting itself as a regional hub.

According to the national power utility’s report and accounts, electricity exports grew, in one year, from 1,730 Gigawatt-hours (GWh) to 1,891 GWh, an amount representing more than 30% of the country’s total production.

“Our performance in the southern African region is quite encouraging,” says the chairman of the board of directors, Marcelino Gildo Alberto, in a message in EDM’s 2023 report and accounts.

“Gradually, we are consolidating the objective of making Mozambique the regional energy hub. In addition to the increase in export volume, in 2023, we increased energy sales to Botswana and successfully concluded the debt collection process from ZESCO, our counterpart in Zambia, worth US$22 million [€20.2 million],” the message reads.

Lusa had previously reported that, in 2023, EDM recorded profits for the third consecutive year, but that they had fallen 7.5% compared to 2022, to 4,820 million meticais (€70.3 million).

According to the EDM report and accounts, the company’s volume of business grew 14% in 2023, to 53,170 million meticais (€775.6 million euros).

EDM announced in April that it would increase the supply of electricity to its Zambian counterpart ZESCO, from 50 to 90 Megawatts (MW), according to the addendum to the initial contract.

“Not only do we intend to transact more volumes of electrical energy, but also to establish partnerships in the sector, as well as generating the necessary confidence to improve commercial exchanges,” said Marcelino Gildo Alberto, quoted at the time in a statement from the Mozambican electricity company.

He added that EDM “is ready to fill the electricity deficit that Zambia is experiencing at the moment”, due to the drought affecting its hydroelectric dams and power generation capacity.

According to the Mozambican electricity company, an addendum to the contract with ZESCO concluded a year ago in Luanda was signed in Lusaka at that time, for the sale of electricity increasing from an initial 50 MW to 90 MW.

Marcelino Gildo Alberto said that “in the medium term, a 400 kV interconnection line should be implemented between Mozambique and Zambia”, an infrastructure that is part of the “list of priority projects to improve direct commercial exchanges of energy in large volumes between the two countries”, as well as for the SAPP (Southern African Power Pool) market.

EDM adds that this interconnection between Mozambique and Zambia will allow the “rapid” exchange of around 2,000MW of electrical energy for the regional market, starting in 2030 and benefiting Zambia in particular, “where demand for electrical energy is increasing exponentially, especially in the mining sector”.

Source: Lusa