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29 of March 2021

Europe-Mozambique Investment Forum: conclusions and next steps

The Europe-Mozambique Investment Forum took place on the 22nd and 23rd of March, jointly organized by ALER and AMER- Mozambican Renewable Energy Association, in cooperation with GET.invest Mozambique - funded by the European Union and Germany, and part of the European programme GET.invest. 

This high-level event had over 600 registered participants, including representatives of local Mozambican companies, several international companies, financial institutions, and other public and private entities interested in the renewable sector in Mozambique.

The Forum was divided into 4 round tables, divided over the two days, focused on the discussion of the document Briefing: Renewables in Mozambique 2021, available for free download here.

 

On March 22 the following sessions took place: 

 

  • ROUND TABLE 1 – MOZAMBIQUE RENEWABLE ENERGY SECTOR OVERVIEW

Presentations: animation  General Sector Data chapter and animation Legal and Institutional Framework chapter 

Recordings available here.

  • ROUND TABLE 2 – INDEPENDENT POWER PRODUCERS 

Presentations: animation IPP chapter

Recordings available here.
 

This first day delivered important considerations , of which the following stand out:

Conclusions

  • The government's commitment to continue the process of reviewing the electricity law and ensuring its approval by the Assembly of the Republic by the end of the year;
  • The commitment of Mozambican institutions in the development of renewables to reach the target of 20% in the energy matrix by 2040;
  • The EU's contribution to change the present paradigm through PROLER and emphasizing its role in combating climate change;
  • The contribution of German cooperation in the launch during the next year, of GET.FiT;
  • The announcement by ARENE of the intention to implement a one-stop shop to facilitate procedures and institutional coordination;
  • The confirmation that in April the short list of companies that will present projects to the Dondo plant will be announced;
  • EDM's commitment to the integration of renewable energies and the intention to continue with a competitive bidding model;
  • The need and willingness to involve the private sector to achieve the goal of universal access by 2030, in both on-grid and off-grid projects, including the C&I seed with enormous potential to explore;
  • The role of GET.invest in mobilizing financing and scale up the various business models in the off-grid sector (supported by the various programs), together with the role of local banks in financing renewable energy, including credit lines supported by German cooperation through KfW, PROPARCO and UNIDO.

 

On the 23rd of March, the following sessions took place: 

 

  • ROUND TABLE 3: MINI-GRIDS

Presentations: animation Mini-grids chapter 

Recordings available here.

 

  • ROUND TABLE 4: SOLAR HOME SYSTEMS & CLEAN COOKING

Presentatios: animation  SHS chapter and animation Clean Cooking chapter

Recordings available here.

From the second day we would like to highlight the following:

Conclusions

  • The announcement of the regulation that defines the basis for the concession and tariff regime to be applied is now available for comments;
  • The announcement that in the second half of 2021 there will be clarity on the instruments for mini-grids;
  • ENABEL's announcement about the tender for the construction of 5 mini-grids;
  • ENABEL's emphasis on the need to stimulate productive use within the communities and to support FUNAE in the production of geographic data;
  • ENABEL's commitment to reaching 42,000 connections - not only mini-grids but also autonomous installations;
  • The need to create an Off-grid Task Force to share information among all stakeholders;
  • The current cost of energy is only sustainable as long as subsidies are available. Tax incentives and import taxes would make the Mozambican market more attractive and accessible to 70% of Mozambicans;
  • Instituto Nacional de Comunicações leads an initiative that aims to open all mobile payment platforms on all mobile networks;
  • Multidisciplinary group led by AMER, submitted to the government a study on the incentives for the SHS market;
  • The fact that there is funding but it is necessary to have quality applications - ALER and AMER can give support;
  • It is not possible to predict when the pandemic will end, so it is necessary to adapt the business and support.


The Forum has ended but the work of AMER and ALER has just begun.

Next steps

• Make available Briefing: Renewables in Mozambique 2021 and we will deliver hard copies to the main institutions in Mozambique;

• Create joint ALER-AMER working groups on each of the processes to be prepared at the events: IPP, mini-grids, SHS, and clean cooking, so that we can identify the priorities of the private sector and the contributions that we will make directly to the Mozambican government and institutions, as well as cooperation partners if necessary. The mini-grid working group has already been created, see here for more information;

• We are also available to identify possible business partners and suppliers, please contact us directly with your needs, so we will be able to advise;

• Between the 2nd semester of 2021 and the 1st semester of 2022 we will again organize another event to meet and be able to exchange views and share the latest developments.

 

We are all available, ALER, AMER and partners to make our contribution towards reaching the goal of universal access by 2030 and to promote local content!

 

Become our Member to have access to these and other advantages. Read out more here.