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Arab-Mozambique Investment Forum: FUNAE Invites Private Sector to Invest in Mini-Grid Management

Arab-Mozambique Investment Forum: FUNAE Invites Private Sector to Invest in Mini-Grid Management

The Energy Fund (FUNAE) invited the private sector to invest in the management of mini-grids on Thursday 25 July in Maputo, noting that there are already 98 structures throughout the country.

“Over time, it has been noted that these mini-grids that are implemented in various places throughout the national territory also stimulate development, and it is in this context that it is necessary to upgrade these centres. That’s why the private sector is being asked to look at them. It should be noted that, in the short term, we will be launching an opportunity for the business community to manage these mini-grids, looking at the characteristics that exist in these locations and at alternatives, in order to increase their capacity,’ explained Isália Munguambe Dimene, Chairman of FUNAE, speaking on the panel on “Investment Opportunities in the Energy Sector” at the Arab-Mozambique Investment Forum.

She revealed that, as part of the Electrification Plan, 71 sites have been identified in the provinces of Zambézia, Nampula and Tete, where work is being done by the Ministry of Mineral Resources and Energy and the Energy Regulatory Authority to make existing opportunities available for developing projects. ‘We have to make a note: the private sector is responsible for developing these sites, as they have different characteristics, given the industry, agriculture and fishing sectors,’ he said.

Isália Munguambe Dimene

She pointed out that residential solar systems are another window of opportunity for the private sector. “We heard here that the level of access to energy is 54 per cent, and it should be noted that electrification is done in terms of complementarity, on and off the grid. As well as mini-grids, there is also great potential for developing autonomous solar systems,’ he explained.

As part of the Electrification Plan, 71 sites have been identified in the provinces of Zambézia, Nampula and Tete, where work is being done by the Ministry of Mineral Resources and Energy and the Energy Regulatory Authority to make existing opportunities available for developing projects.
Isália Munguambe Dimene

The source also highlighted ‘the country’s great hydroelectric potential, which reveals great opportunities for developing mini hydroelectric plants. That’s why the private sector is also being called upon to look at these initiatives. Here are some of the opportunities that exist, one of which is already underway. In the meantime, there is already a pre-feasibility study, designed to be able to guarantee the implementation of projects,’ he said.

For his part, the Deputy Minister for Mineral Resources and Energy, António Saíde, emphasised the country’s energy potential, which is ready to be exploited, although there are international demands to move away from fossil fuels.

António Saíde

“Mozambique is part of a complex international context, characterised on the one hand by energy shortages and on the other by changes in global energy policies imposed to adapt and mitigate the harmful effects on the environment caused largely by the use of fossil fuels. Paradoxically, our country is endowed with a spectrum of mineral and energy resources, most notably coal, which has 23 billion tonnes of identified potential; natural gas, in the Pande and Temane fields, which has 2.5 trillion cubic feet, already being exploited since 2004; Rovuma Basin, with 165 trillion cubic feet, fully studied and proven, with production starting in 2022 with the export of Liquefied Natural Gas (LNG); renewable energies; Hydroelectric power, with a potential of around 18,000 Megawatts (MW), which has already been harnessed; solar power with 23 TWh (Terawatt hours); wind power with 4.5 GW (Gigawatt); biomass with 1.9 GW; geothermal with 147 MW; and tides and waves with around ten Megawatts’.

There is a huge hydroelectric potential in the country, which reveals great opportunities for developing mini-hydro plants, which is why the private sector is also being called upon to look at these initiatives.Here are some of the opportunities that exist, one of which is already underway
Isalia Munguambe Dimene

On the same panel, the CEO of the Cahora Bassa Hydroelectric Plant, Tomás Matola, explained that the HCB will undergo rehabilitation to increase its useful life, and that the operation will require 56.8 billion meticais (900 million dollars).

Tomás Matola

“In principle, in a year and a half, the deep rehabilitation of the first generator set can begin.

This process will take between five and six years, because rehabilitation takes 12 to 13 months on average. So we’re going to rehabilitate one unit every year, so that by 2031 we’ll be able to add another 25 to 30 years to Central Sul,’ he said.

The dam’s mechanical and electronic equipment is completely beyond its useful life.

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“The dam is still in full operation, which presents us with major challenges because, as time goes by, maintenance and operating costs become more expensive. Thanks to our rigour in the maintenance process, we continue to operate at over 95% efficiency, but if we carry on like this, in five or eight years’ time, the power station could start giving us problems. Because of this, a major project has been designed, called Capex Vital 10 years, which consists of the in-depth rehabilitation of the entire electricity generating plant,’ he said.

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