After two years of severe drought, Hidroeléctrica de Cahora Bassa (HCB) managed to increase both power generation and reservoir storage simultaneously — delivering greater energy security for Mozambique and Southern Africa.
At first glance, the headline figure from HCB’s first-half 2026 results is straightforward: the company generated 6,399.03 gigawatt-hours (GWh), a 13% increase on the same period a year earlier and roughly 10% above its own half-year target. Yet what makes the performance particularly significant is how it was achieved. HCB produced more electricity without drawing down reservoir reserves. On the contrary, while turbines ran ahead of schedule, the dam’s useful storage recovered from a historic low of around 20% in January to 56% by end-June.
Put simply, the company raised production while simultaneously rebuilding stocks of the resource — water — on which its entire output depends. That combination represents considerably more than a strong financial half-year. It reflects, according to the company, a balanced approach to managing water resources alongside their conservation: a permanent challenge for any large hydroelectric operator, and one made especially acute in a region that has endured one of the most severe droughts in its recent history.
The indicator that measures the dam’s health
From a technical standpoint, useful storage refers to the volume of water actually available to pass through turbines and be converted into electricity, as distinct from dead storage — water that sits below the intake level of the generating units. The 35-percentage-point recovery in useful storage means that inflows into the reservoir during the first half, boosted by improved hydrological conditions across the Zambezi basin, exceeded the volume consumed in power generation.
This improvement creates greater headroom to navigate the forthcoming dry season, reduces the risk of production constraints, and enhances the company’s ability to meet peak electricity demand — both in Mozambique and in its export markets.
Financial results track the operational performance closely. Figures still subject to audit point to revenues of approximately US$263 million and a net profit exceeding US$115 million, confirming the company’s ability to convert better hydrological conditions into economic gains.
Renewed confidence in the capital market
The company’s improved fortunes were also reflected on the capital market. During the first half, HCB shares reached a high of 3 meticais on the Bolsa de Valores de Moçambique (BVM), with more than 27.5 million shares traded and a total financial volume of approximately 80.5 million meticais. Although the BVM continues to be characterised by relatively low liquidity, HCB remains one of the exchange’s reference stocks. Investor interest stems not only from the half-year results but also from the company’s track record as one of the most consistent profit generators and dividend payers on the market.
A key supplier for Southern Africa
HCB’s reach extends well beyond Mozambique’s borders. With an installed capacity of 2,075 megawatts (MW), the company is one of Southern Africa’s largest independent power producers, supplying three strategic markets: Mozambique, South Africa, and Zimbabwe. It also makes periodic sales into the regional market through the Southern African Power Pool (SAPP), the mechanism that enables electricity trading among SADC member states.
HCB’s own reports show that firm power contracts are directed primarily to South Africa, which absorbs approximately two-thirds of the company’s contracted capacity at 66%, followed by Mozambique at around 30% and Zimbabwe at 4%. Together, these contracts represent firm capacity of approximately 1,450 MW, secured through the continuous operation of four of the plant’s five generating units, with a fifth held in reserve to guarantee system reliability.
In this context, the recovery of reservoir reserves carries significance well beyond domestic power generation. More than a set of positive indicators, the first-half results show that HCB has rebuilt its principal strategic asset: water. That recovery may prove decisive in sustaining high production levels through the remainder of the year — consolidating both the stability of Mozambique’s electricity system and the company’s position as one of Southern Africa’s central pillars of power supply.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=544604
