In 2022, Mozambique’s economy was ranked 120th in gross domestic product (GDP) in the world. The country’s economy is dependent on the export of coal, raw aluminum, gold, natural gas, and electricity.
In 2016, Mozambique signed the Paris Climate Agreement, committing to cut 23 million tons of CO2 emissions from 2000-2024 and 53.4 million tons of CO2 emissions from 2025-2030.
Power Generation Capabilities
In 2021, only 31.5% of the people in Mozambique had access to electricity. In 2021, the state power company, Electricidade de Moçambique used renewable energy (81.4 %), natural gas (11.5 %), and oil (7.1%) to generate electricity in the country. 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 in 2026.
- 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.
In 2010, American energy company, Anadarko discovered a “giant” offshore natural gas field off the northern coast of Mozambique. Mozambique’s estimated hydrocarbon potential is over 100 trillion cubic feet of natural gas.
In 2021, coal, natural gas, and electricity exports generated U.S. $1.84 Billion, U.S. $421 Million, and U.S. $381 Million respectively in revenue for Mozambique. In 2022, Mozambique was the 9th largest coal and 50th largest natural gas exporting country in the world.
Although Mozambique is an exporter of coal, national gas and electricity, the nation imports refined petroleum for power generation and transportation. In 2021, Mozambique imported 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 coal, natural gas, and electricity are funding Mozambique’s renewable energy boom.
Website – “Our Energy Conundrum”
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.