National Economy
The Southeast African country of the Republic of Mozambique is bordered by the Indian Ocean, Tanzania, Malawi, and Zambia. The population of Mozambique is approximately 33.67 million people[1].
In 2022, Mozambique’s economy was ranked 126th in gross domestic product (GDP) in the world[2]. The country’s economy is dependent on the export[3] of special purpose ships, coal, raw aluminum, gold, natural gas, electricity, and fluorides.
Environmental Policies
In 2016, Mozambique signed the Paris Climate Agreement[4], committing to cut 23 million tons of CO2 emissions from 2000-2024 and 53.4 million tons of CO2 emissions from 2025-2030, conditional on international support.
In 2018, Mozambique’s government set the goal of providing electricity to 50% of the population by 2023. The plan calls for the construction of numerous hydropower and solar photovoltaic projects.
Power Generation Capabilities
In 2021, only 30.6 % of the people in Mozambique had access to electricity[5]. In 2021, the state power company, Electricidade de Moçambique used renewable energy (81.4 %), natural gas (12.4 %), and oil (6.2 %) to generate electricity in the country[6]. Hydropower is the dominant type of renewable energy used to generate electricity in Mozambique.
Recent renewable energy projects in Mozambique include:
- 1,500 MW Hydropower Project – In June 2022, Electricidade de Moçambique commenced work on the Mphanda Nkuwa hydropower project, located on the Zambezi River. The project is forecast to be commissioned in 2030.
- 120 MW Wind Project – British company, EleQtra is continuing work on the Namacha wind project, located in southern region of the country. The wind farm is scheduled to be commissioned by year-end 2023.
- 100 MW Solar Project – British company, BB Energy is continuing work on the Chimuara Solar project at a site approximately 500 miles northeast of the nation’s capital, Maputo. The solar project is forecast to be commissioned by year-end 2023.
- 60 MW Solar Tender – Mozambique’s Energy Regulatory Authority is currently evaluating bids from a tender for two 30 MW solar projects for the northern and west-central regions of the country.
- 41 MW Solar Project – In December 2021, Portuguese engineering company, EFACEC Power Solutions commissioned the Metoro solar project at a site in the northeast region of the country.
- 19 MW Solar + 2 MW Energy Storage Project – In December 2022, Spanish engineering firm, TSK Electronica & Electricidad commissioned the Cuamba solar plus energy storage project at a site in the northwest region of the country.
Conclusions
In 2010, American energy company, Anadarko discovered a “giant” offshore natural gas field off the northern coast of Mozambique. In 2020, Mozambique’s estimated natural gas reserves[7] were over 100 trillion cubic feet of natural gas.
In 2020, natural gas and electricity exports generated U.S. $421 Million and U.S. $381 Million respectively in revenue for Mozambique[8]. In 2021, Mozambique was the 49th largest natural gas exporting country[9] in the world.
Although Mozambique is an exporter of national gas and electricity, the nation imports refined petroleum for power generation and transportation. In 2020, Mozambique spent[10] U.S. $1.95 Billion for imported refined petroleum.
On 24 February 2022, Russia invaded Ukraine, prompting the European Union, United Kingdom, United States, Canada, Japan, South Korea, Australia, and New Zealand to place economic sanctions on Russian imports and exports. As a result, the crude oil and natural gas prices increased by over 50% from May 2021 to May 2022.
Mozambique has vast undeveloped renewable energy resources, including hydropower, onshore wind, offshore wind, solar, and biomass. Exports of electricity and natural gas are now funding Mozambique’s renewable energy boom.
Jack Kerfoot
Website – “Our Energy Conundrum”
www.jack kerfoot.com
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio, podcast, and television stations from New York City to Los Angeles on numerous energy issues and topics.
[1] Mozambique Population (2023) – April 7, 2023, www.worldometers.info
[2] Gross Domestic Product By Country 2022 – Worldometer
[3] The Observatory of Economic Complexity (OEC) – Mozambique
[4] Carbon Brief “Paris 2015: Tracking Country Climate Pledges”
[5] World Bank, “Access To Electricity (% Population) – Mozambique
[6] Our World In Data, Mozambique: Energy Country Profile by Hanna Ritchie and Max Roser
[7] SPTEC Advisory, “Mozambique – Emergence of a Giant in Natural Gas” on January 2013
[8] The Observatory of Economic Complexity (OEC) – Mozambique
[9] Natural Gas Exports By Country 2021 by Daniel Workman
[10] The Observatory of Economic Complexity (OEC) – Mozambique Imports