According to the latest study by IRENA – the International Renewable Energy Agency – published in June 2023, in order for the planet not to exceed the average global temperature of 1.5ºC compared to the pre-industrial era, the world must add around 1000 GW of renewable energy capacity to the grid each year by 2030. Now, to give you an idea of the order of magnitude, 1000 GW is the power that the United States of America needs every year to meet its consumption needs (1). As you can see, it won’t be an easy task…
However, the energy revolution is here to stay and companies around the world are beginning to realise that something has to change in their day-to-day operations. Not only because of environmental issues (e.g. reducing the carbon footprint), but also because of social and economic issues, given that the rise in the cost of energy in recent times has had a dramatic impact on the end consumer.
Reasons for including renewable energies
Implementing an energy transition plan in a company that considers the use of renewable energies, such as solar or wind power, is not only a sensible action. It is also a highly responsible attitude, demonstrating the company’s commitment to sustainability. The inclusion of renewables will allow companies to diversify their energy mix, thus reducing their dependence on a single source, such as coal or natural gas, both examples of fossil energies that will be discontinued in the short and medium term respectively.
Although the initial investment in the infrastructure may require financial resources, generating energy from renewable sources can result in reduced operating costs in the long term, as it allows companies to benefit from more stable energy tariffs, reduce dependence on fossil fuels, which are subject to price fluctuations in the market, and even sell surplus energy to the grid (something that already has a legal framework under Electricity Law No. 12/2022, published in July last year in Mozambique).
The transition to renewable energies requires innovation and the development of new technological solutions. By incorporating these types of initiatives into their business plan, companies can boost internal innovation, differentiate themselves from competitors and position themselves as leaders in their sector. Some companies located in MOZPARKS (Beluluane Industrial Park) are already examples of this. This will allow companies to open doors to new markets and new business opportunities, as well as making them appealing to potential investors who are increasingly choosing to put their money into environmentally responsible companies, meeting the ESG (Environmental, Social and Governance) criteria, which are a measure for assessing companies’ performance in these areas.
The energy revolution is here to stay and companies are starting to realise that something has to change…
Last but not least, governments around the world, including Mozambique, are creating increasingly strict regulations and standards relating to carbon emissions and the use of renewable energies in countries. In this regard, the role of the Energy Regulatory Authority (ARENE) and the Ministry of Mineral Resources and Energy (MIREME) has been very important, with several pieces of legislation having been published in 2022 aimed at regularising this sector. In this sense, it’s up to companies to be vigilant and realise how they can take advantage of these new regulations, as well as ensuring that they comply with them.
Assessing the risks and opportunities
When considering the transition to renewable energies in your business, it is important to carry out a careful analysis of the economic viability of the project, assessing the risks and opportunities specific to your sector of activity, so that you can then identify the best strategies for implementing the actions. In this assessment, it is also important to consider the associated risks, such as high costs in the infrastructure construction phase, the intermittency of solar and wind energy and even the negative environmental impacts caused not only in the construction phase, but also at the end of the infrastructure’s life (e.g. photovoltaic park). To this end, a plan should be drawn up to ensure that the waste generated is properly disposed of, favouring circular economy solutions.
In addition to the reasons already given, the transition to renewable energies also creates “green” jobs, boosting the country’s economic growth. Technical staff will be needed to install and maintain solar and photovoltaic panels, wind turbine technicians, renewable energy engineers, energy efficiency specialists, among many others. In a country where there is no shortage of sun and wind, Mozambique and its companies can only gain from making this transition!
(1) Source: “How to avoid a climate disaster”, Bill Gates (February 2021)
