Mozambique’s energy sector is transforming, driven by a new solar tender from MIREME and ARENE for decentralised solar and battery storage systems. This initiative aims to advance the nation’s renewable energy objectives by improving energy access and reliability across multiple provinces.
Details of the New Solar Tender
In a significant move for Mozambique’s energy sector, the Ministry of Mineral Resources and Energy (MIREME) and the Energy Regulatory Authority (ARENE) have launched a new tender for developing decentralized solar and battery storage systems. The recently announced tender seeks to select two independent power producers (IPPs) to develop, finance, build, operate, and transfer solar-plus-storage projects in the Nampula, Zambézia, Sofala, and Gaza provinces along the country’s eastern and southern coasts.
This initiative is a crucial part of the GET FiT Mozambique Program, which is funded by the German government through the KfW Development Bank and supports these projects by leveraging the expertise of IPPs. Interested parties must register with ARENE and submit the required documents by September 13 for pre-qualification.
Pursuing Ambitious Renewable Energy Targets
Mozambique’s push for solar energy highlights its significant yet underexploited solar potential. According to the International Renewable Energy Agency (IRENA), the country had an installed solar capacity of 83 MW by the end of 2023. Looking ahead, the nation’s Power Infrastructure Master Plan sets an ambitious target: to achieve 50% of its energy generation from renewable sources by 2043.
The potential for solar energy is immense, with global solar irradiation ranging from 1,785 to 2,206 kWh/m²/year, which translates to an estimated potential of 23,000 GW. Provinces such as Niassa, Nampula, Cabo Delgado, and Zambézia show the highest levels of solar irradiation, making them prime locations for solar projects. The Renewable Energy Atlas has already identified 189 suitable locations near existing substations for grid-connected power plants, with a total capacity of 599 MW.
Large-scale renewable projects in solar and hydro energy are becoming increasingly attractive to investors. The National Energy Fund (FUNAE) expects the capacity of on-grid renewable energy from IPPs to rise to 575 MW by 2030. Currently, 60 MW are operational, with an additional 15 MW under construction. Projects totalling 310 MW are in the pre-feasibility phase, and tenders for another 140 MW have been launched under the PROLER program, which helps Mozambique’s national utility, EDM, issue calls for tenders.
Navigating Challenges and Driving Progress
Despite this potential, several challenges remain. The ongoing re-establishment of Mozambique’s energy policy and its dispersed rural population limit the practical application of solar energy. Realistically, only about 2.7 GW of the 23,000 GW potential is suitable for solar projects aligned with current electrification and grid expansion plans. However, off-grid Solar Home Systems and mini-grids offer a cost-effective alternative for extending electricity access to remote and scattered communities.
By the end of 2022, Mozambique had developed 125 MW of solar power plants through public-private partnerships (PPPs). Notable projects include Mocuba and Metoro, which collectively contribute 60 MW to the national grid. A 15 MW plant in Cuamba is currently under construction, and Power Purchase Agreements (PPAs) have been approved for two additional plants: Cuamba II (30 MW) and Pemba/Mecufi (20 MW).
In May 2022, Total Eren secured a tender for a 30 MW solar project in Dondo, with construction scheduled to commence in early 2023. Several other projects, ranging from 20 MW to 50 MW, are in various stages of pre-qualification or pre-feasibility studies.
This tender for solar-plus-storage projects marks a pivotal step in Mozambique’s transition to a more sustainable and reliable energy future. By leveraging its abundant solar potential and international support, Mozambique aims to significantly enhance its renewable energy capacity, providing a blueprint for other nations in the region. With the deadline for pre-qualification approaching, interested firms have the opportunity to help shape the energy landscape of Mozambique for decades to come.
