Recent developments in Mozambique’s energy sector

Recently, Mozambique’s energy sector has been under several changes. To start with, there is a new Energy Minister since December 2017. Besides that, one could highlight the preparation of the national electrification strategy presented at ALER’s conference, the support to an utility-scale wind farm and solar power plant, the revision of the mandate and improvement of the solvency of the state-owned utility EDM (member of ALER), strengthening the enabling environment for private generation, as well as other transmission and conventional generation projects.

But the news doesn’t end up here, with the no less important, creation of a new independent energy regulator, the Energy Regulatory Authority (Portuguese acronym ARENE).

The process started long time ago, in 1997, with the creation of the National Electricity Council who was responsible for certain regulation functions, but only in a non-binding advisory capacity. As countries must have a politically independent regulator in order to allow private investment while protecting consumers, finally in September of last year the Mozambican Parliament approved the law creating ARENE, which went into effect on December 8, 2017.

Now that ARENE has been established, the work has only started, with high expectations from energy sector, ARENE is expected to be politically independent, effective, and deliver high quality service, in other words to become the capable regulator Mozambique needs.

ALER members will soon receive the legal summary note regarding the creation of ARENE, prepared by ALER’s legal advisors, under our legislation monitoring service. If you also wish to receive this and other monitoring services become a member or a sponsor.