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31 of January 2023

'Reform of the legal and regulatory framework: Increasing the use of renewable energy and private sector participation'

Similarly, to what has been happening in other realities, worldwide and particularly in the Southern Region of Africa, Mozambique is aware of the need to enhance the use of renewable energies towards sustainable development, through its use in its different forms, which integrate the national energy potential.

 

It is in this context that we have assumed the commitment to guarantee energy access to the entire population by 2030, recognizing the importance of sustainable sources of energy generation, creating political-institutional conditions associated with a favourable legal-regulatory framework for this purpose.

 

In the main normative and regulatory instruments, Mozambique clearly shows its commitment with the mitigation actions against climate change, with  a clear compromise that all reforms and implementation of projects at the energy sector level, take into consideration the need to enhance the use of renewable energy because the country has experienced the negative effects of climate change.

 

This vision is reflected in the projects that are implemented in the National Electricity Grid (REN), with the Renewable Energy Auction Programme (PROLER), the four generation projects (3 solar and 1 wind) aim to increase energy security and achieve a significant reduction in CO₂ emissions in the period between 2020-2030, carried out under a public tender regime for the award of concessions for energy production from renewable sources.

 

PROLER is already in its second public tender for the selection of Independent Power Producer for the development of solar power plants in Tete province and Niassa province.

 

The other segment that has seen significant evolution is the off-grid segment, which has seen its legal and regulatory framework being developed in recent times, aiming to make it more robust to accelerate private investment in renewable energy projects with, in its regulatory package, the General Regulation on Access to Energy in Off-Grid Areas, as its beacon.

 

The legislation in question regulates mini-grids up to 10 MW and the activity of energy services, with preferential recourse to sustainable energy sources:

 

  1.  Recognising the specificities of off-grid investment;
  2.  Seeking to address the concerns of the private sector which include, among others, return on investment, security in case of grid arrival, reduction of charges/fees simplification of procedures, access to benefits;
  3.  Ensuring the quality of supply taking into account the particularities of off-grid areas as well as technical and security standards and also environmental aspects;
  4.  Ensuring integrated planning with the connections made through the national electricity grid;
  5.  And not least, responding to the initiatives of some partners who have already secured funds to implement projects.

 

Added to all this regulatory development is an important legal reform, included in the package of measures for economic acceleration announced by the President of the Republic, which was to exempt the payment of Value Added Tax (VAT) on the importation of production factors for electrification, aiming to promote more investment in renewable energies to accelerate their access, particularly in rural areas.

 

All this is done having as one of the great motivations the creation of a favourable environment for private investment, security of investment and supply of energy with quality and reliability.