Energy Security in Mozambique

Mozambique possesses significant hydropower, natural gas, and coal potential, yet over 80% of its population lacks grid connectivity, relying instead on traditional biomass. The report details the country's transition from a centralized socialist economy to a liberalized market, highlighting the role of the 1997 Electricity Act in opening the sector to private investment. It examines the functions of key entities like Electricidade de Moçambique (EDM) and the National Energy Fund (FUNAE), while outlining strategic goals to increase electrification rates to 20% by 2020 and leverage regional power demand through the Southern African Power Pool (SAPP).

• Despite vast natural energy resources, energy access remains extremely low, with more than 80 percent of the population not connected to the national grid due to high installation costs, lack of investment, and inadequate infrastructure.
• Traditional biofuels, specifically wood, charcoal, and agro/animal waste, constitute the primary energy source for the majority of the population, accounting for 80 percent of household energy consumption.
• Mozambique has an estimated hydropower potential of 12,500 MW with an annual generation potential of 60,000 Gwh, with over 80 percent of this potential located in the Zambezi Valley.
• The country possesses significant fossil fuel reserves, including estimated coal reserves of three billion tons in Tete Province and natural gas reserves potentially as high as 3.5 trillion cubic feet in Inhambane and Sofala provinces.
• The government aims to increase the national electrification rate to 15 percent by 2019 and 20 percent by 2020, with a projected total electricity demand of nearly 900 MW by 2020.
• The 1997 Electricity Act no. 21/97 ended the state monopoly on electricity production, distribution, and sale, allowing private operators to enter the sector through concession contracts.
• Electricidade de Moçambique (EDM) utilizes a uniform tariff structure that creates a cross-subsidy, shifting resources from the more lucrative southern region to lower-income regions in the center and north.
• The National Energy Fund (FUNAE), established in 1997, is tasked with off-grid electrification and promoting renewable energy technologies, though its impact is limited by a modest budget relative to the size of the off-grid population.
• Mozambique is a member of the Southern African Power Pool (SAPP), which aims to create a single interconnected grid in Southern Africa; however, the market is dominated by South Africa's Eskom, which controls over 82 percent of generating capacity.
• The government's 2008–12 Energy Strategy includes fiscal incentives for rural electrification, such as VAT and corporate profit tax exemptions for foreign companies implementing these projects.

APA

Chambal, H. (2010). Energy Security in Mozambique. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/energy_security_mozambique.pdf

Chicago

Chambal, Hélder. Energy Security in Mozambique. International Institute for Sustainable Development, 2010. https://www.iisd.org/system/files/publications/energy_security_mozambique.pdf.

Wikipedia

{{cite report |last1=Chambal |first1=Hélder |title=Energy Security in Mozambique |publisher=International Institute for Sustainable Development |date=2010 |url=https://www.iisd.org/system/files/publications/energy_security_mozambique.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chambal2010energy, author = {Chambal, Hélder}, title = {{Energy Security in Mozambique}}, institution = {International Institute for Sustainable Development}, year = {2010}, url = {https://www.iisd.org/system/files/publications/energy_security_mozambique.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }