Mozambique's energy sector is transforming with a new solar tender launched by MIREME and ARENE for decentralised solar and battery storage systems. This initiative aims to advance the nation's renewable energy objectives, improving access and reliability in multiple provinces.
Solar Tender Objectives
Mozambique’s energy sector is set for a significant transformation as the Ministry of Mineral Resources and Energy (MIREME) and the Energy Regulatory Authority (ARENE) launch a tender for the development of decentralized solar and battery storage systems. This initiative aims to propel the country towards its renewable energy goals, enhancing energy access and reliability across several provinces.
The tender which was recently announced aims to select two independent power producers (IPPs) to develop, finance, build, operate, and transfer solar-plus-storage projects in Nampula, Zambézia, Sofala, and Gaza provinces along Mozambique's eastern and southern coasts. Interested parties must register with ARENE and submit the required documents by September 13 for pre-qualification.
The initiative is a crucial part of the GET FiT Mozambique Program, which the German government funds through the KfW Development Bank. This program supports decentralized utility solar photovoltaic (PV) and battery energy storage system (BESS) projects, leveraging the expertise of IPPs to achieve these goals.
Aiming for Renewable Energy Targets
Mozambique’s push for solar energy is underscored by its significant yet underexploited solar potential. According to the International Renewable Energy Agency (IRENA), Mozambique had an installed solar capacity of 83 MW by the end of 2023. The country's Power Infrastructure Master Plan sets an ambitious target; achieving 50% of its energy generation from renewable sources by 2043.
The potential for solar energy in Mozambique is immense. The country’s global solar irradiation ranges between 1,785 and 2,206 kWh/m2/year, translating into an estimated potential of 23,000 GW. Provinces such as Niassa, Nampula, Cabo Delgado, and Zambézia exhibit the highest levels of solar irradiation, making them prime locations for solar energy projects. The Renewable Energy Atlas identified 189 locations near existing substations suitable for grid-connected power plants, with a total capacity of 599 MW.
Large-scale renewable projects in solar and hydro energy are becoming increasingly attractive to investors in Mozambique. The National Energy Fund (FUNAE) expects the capacity of on-grid renewable energy from IPPs to rise to 575 MW by 2030. Currently, 60 MW are operational with an additional 15 MW under construction. Furthermore, projects totalling 310 MW are in the pre-feasibility phase; and tenders amounting to 140 MW have been launched under the PROLER program which assists Mozambique’s national utility, EDM, in issuing calls for tenders.
Challenges, Progress and Future Projects
Despite the potential, several challenges remain. The ongoing re-establishment of Mozambique’s energy policy and the dispersed rural population limit the practical harnessing of solar energy. Realistically, only about 2.7 GW of the 23,000 GW potential is suitable for solar projects aligned with current electrification and grid expansion plans. However, off-grid Solar Home Systems and mini-grids offer a cost-effective alternative to extend electricity access to remote and scattered communities.
By the end of 2022, Mozambique had developed 125 MW of solar power plants under public-private partnerships (PPP). Projects like Mocuba and Metoro contributed 60 MW to the national grid. Currently, a 15 MW plant in Cuamba is under construction with approved Power Purchase Agreements (PPA) for two additional plants: Cuamba II (30 MW) and Pemba/Mecufi (20 MW). Total Eren won a tender for a 30 MW solar project in Dondo in May 2022 scheduled to begin construction in early 2023. Several other projects ranging from 20 MW to 50 MW are in various stages of pre-qualification or pre-feasibility.
The tender for solar-plus-storage projects marks a pivotal step in Mozambique’s journey towards a more sustainable and reliable energy future. By leveraging its abundant solar potential and international support, Mozambique aims to significantly enhance its renewable energy capacity, providing a blueprint for other nations in the region to follow. With the deadline for pre-qualification approaching, interested firms have the opportunity to shape the energy landscape of Mozambique for decades to come.