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German Development Bank to Invest $21M in Renewable Energy in Mozambique

German Development Bank to Invest $21M in Renewable Energy in Mozambique

The German Development Bank (KfM) intends to invest up to 21 million dollars to support the construction of solar photovoltaic and hydroelectric power stations in Mozambique.

Supported by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development, the investment is part of the Global Electricity Transition Feed-in-Tariff (GET FiT) programme, which aims to improve the country’s electrification by 2030.

According to the Energy Capital & Power website, this second phase of the programme will provide incentives for independent energy producers to participate in the expansion of renewables.

“Hydroelectric power has enormous potential in Mozambique to generate climate-friendly energy and, if supplied reliably, will contribute to the country’s economic development,” said the Bank’s Portfolio Manager, Marco Freitag.

According to him, “the investment of 21 million dollars is expected to allow more companies to enter the Mozambican energy market. It will also support the connection of hydroelectric plants to the national grid, with a specific focus on the northern and central areas of Mozambique, where approximately 80% of the population lives in energy poverty.”

“The programme will also develop standardised contracts and approval processes for private investors, streamlining entry procedures into Mozambique, while reducing costs and allowing for favourable electricity tariffs,” he explained.

Marco Freitag recalled that the first phase of GET FiT mobilised 26.3 million dollars, and that private solar projects are already underway.

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