According to IRENA, Mozambique has installed around 103 MW of solar PV capacity as of 2023. ⁶

By 2030, the country aims to increase its on-grid renewable energy capacity from independent power producers (IPPs) to 575 MW. ⁷

Hydro: According to IRENA, the levelized cost of electricity (LCOE) for hydropower can range from $0.02USD to $0.19USD per kWh. ⁸

Fossil fuels: The cost of generating electricity from fossil fuels in Mozambique can vary depending on the type of fossil fuel and the specific power plant technology used. The cost of generating electricity from natural gas is approximately $0.15USD to $0.20USD per kWh, while coal-fired power plants can have costs around $0.10USD to $0.15USD per kWh.

Solar: The cost of generating electricity from solar photovoltaic (PV) systems in Mozambique is approximately $0.068USD per kWh. ⁹

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Hydro: 81.91%
Fossil fuels: 17.72%
Solar: 0.37%

Electricity supply in Mozambique can vary significantly depending on the region and the time of year. On average, urban areas might experience around 16-18 hours of electricity per day, while rural areas often face more frequent and longer outages, sometimes having electricity for only 6-8 hours a day.

The exact number of residential solar panel installations in Mozambique isn’t readily available, but the market for solar home systems (SHS) is growing steadily. As of 2021, sales of SHS and solar lanterns increased significantly, with 107,478 units sold. ¹⁰

According to publicly available records, there are about 17 installed and projected solar farms in Mozambique. ¹¹

The off-grid solar PV market in Mozambique is experiencing significant growth. The total estimated addressable market for off-grid solar is currently 173 MW, and it is expected to grow further with recent energy policy reforms. ¹²

The government’s Renewable Energy Auctions Programme (PROLER) aims to significantly increase this capacity. By 2030, the goal is to reach 575 MW of on-grid renewable energy capacity, with solar PV projects playing a major role. ⁷¹³

Solar Engineer: A Solar Engineer in Mozambique usually earns approximately $7,228 USD annually. This salary can vary, ranging from a low income of about $3,304 USD to a high income of around $11,515 USD. ¹⁵

Solar PV Installer: A Solar Photovoltaic Installer in Mozambique generally earns approximately $4,325 USD annually. This salary can range from a low of about $2,234 USD to a high of around $6,672 USD. ¹⁶

Project Manager: The estimated total pay for a Project Manager is $26,820USD per year in the Mozambique area, with an average salary of $23,544USD per year. ¹⁷

General Labor: The gross salary range for general laborers in Mozambique is typically between $2,604 USD (minimum salary) and $5,316 USD (maximum salary). ¹⁸

As of November 2024, the current population of Mozambique is 35,039,575. ¹⁴

Factory rent/mortgage

Factory rent in Mozambique varies depending on the location and size of the property.

Utilities (electricity, water, etc)

Electricity: the average cost of electricity in Mozambique is approximately $0.127USD per kWh for residential consumers and for businesses, the cost is approximately $0.080USD per kWh ⁴

Water: Depending on the location, the cost of water in Mozambique is between $0.44USD and $0.54USD per cubic meter. ¹⁹

Equipment maintenance

The cost of maintaining solar equipment in Mozambique can vary depending on the type and scale of the system, as well as the specific maintenance requirements. Generally, maintenance costs include regular cleaning, inspection, and occasional repairs or replacements of components like batteries and inverters.

Administrative costs

Salaries & wages: The average salary range for a Solar PV Installer  in Mozambique is between $2,234 USD and $6,672 USD. The average salary for a solar engineer in Mozambique is $7,228 USD annually.

Total Installed Capacity

As of 2021, Mozambique’s total installed power capacity is approximately 2,827 MW. The majority of this capacity comes from hydroelectric power, which accounts for about 2,184 MW. Mozambique has a set goal to increase installed capacity to 6,001 MW by 2030 and 20% integration of renewable energy in the grid ²⁰²⁴

Electricity Generation

Mozambique has a diverse energy mix, with the majority of its electricity generation (about 81%) coming from hydroelectric power. ²⁰

Electricity Consumption

Mozambique’s annual electricity consumption totals 13.09 billion kWh, which averages to 386 kWh per capita. The country has the potential to be self-sufficient in energy, as the total production from all its electric energy facilities is 19 billion kWh, amounting to 145% of its domestic usage. ²¹

Grid Infrastructure

Mozambique’s grid infrastructure is characterized by a mix of traditional and emerging energy sources. The grid includes 110kV to 400kV transmission lines, connecting various power generation facilities such as thermal, hydroelectric, biomass, and solar sites. The sole electrical utility, Electricidade de Moçambique (EDM), is responsible for the generation, transmission, and distribution of electricity. ²²

Energy Access

Grid electricity access in Mozambique increased from 34% in 2020 to 40% by mid-2022, with total access (on and off-grid) reaching 44%. However, 17.5 million Mozambicans still lack electricity, mostly in rural areas. In 2020, only 4.5% of the rural population had electricity, compared to 75% in urban areas. ²³

Off-Grid Regulation decree: This decree was  approved in 2021, aims to guide the country’s electrification through off-grid solutions including mini-grids of up to 10 MW, solar home systems, and clean cooking solutions. The decree is designed to create a clear regulatory framework to facilitate private sector investment and improve energy access in off-grid areas. ¹²

PROLER (Promoçao de Leilões de Energias Renováveis): This renewable energy auction mechanism acts as a catalyst for private investment in developing solar and wind projects, facilitating their connection to the National Power Grid. ²⁴

• Energy Transition Strategy (ETS): Mozambique aims to significantly boost its solar power generation by 2030, with plans to install at least 1,000 MW of solar photovoltaic capacity in several locations, including Dondo, Lichinga, Manje, Cuamba, and Zitundo. This ambitious plan is part of a larger strategy to significantly increase renewable energy sources in the country, with anticipated investments of around $80 billion by 2050. ³⁴
• GET FiT Mozambique Program: It is an initiative funded by the Government of Germany through KfW Development Bank. This initiative seeks to improve energy access and reliability in several Mozambican provinces by supporting decentralized solar PV and battery storage projects developed by Independent Power Producers (IPPs). This move signifies a crucial step in expanding Mozambique’s renewable energy infrastructure, driven by international collaboration and aligned with sustainable development objectives. ³⁵
• Temane Transmission Project (TREP/TTP): This project focuses on improving energy transmission infrastructure in Mozambique. It is one of the projects supported by the OPEC Fund for International Development (OFID) which has enjoyed a strong partnership with Mozambique for over 40 years and targets sectors such as agriculture, fisheries, energy, education, and transportation. ³⁶

Installed Projects

Metoro Solar Plant ²⁵

• Location: Metoro, Cabo Delgado province, Mozambique.
• Capacity: 41 MW
• Details: The project was  developed by Norway’s Scatec Solar under the PROLER initiative. It is the largest solar farm in Mozambique. The plant began commercial operation in April 2022 and is jointly owned by Neoen and utility Electricidade de Mocambique (EDM).

Cuamba Solar Plant ²⁸

• Location: Located in Niassa, Mozambique
• Capacity: 19MW
• Details: Cuamba Solar PV Project is a ground-mounted solar project. Construction of the project began in 2021 and it officially started commercial operations in September 2023.

Mocuba Solar Photovoltaic Plant ²⁹

• Location: Situated in Mocuba, Zambezia Province, Mozambique.
• Capacity: 40 MW
• Details: Now owned by Globeleq limited and EDM. Construction began in June 2018 and was completed in July 2019. Commercial commissioning was effected in August 2019

Projected Project

Mozambique aims to build a 160 MW energy package of four renewable energy power stations. They comprise three solar power stations in the districts of Dondo, Lichinga and Chiuta, together with a wind farm in Inhambane Province.²⁶²⁷

Dondo Solar Power Station

• Location: Dondo District of Sofala Province, Mozambique.
• Capacity: 40MW
• Details: This project is part of the Renewable Energy Auctions Programme (PROLER) and is expected to be commissioned in 2024. The power generated will be sold to Electricidade de Moçambique (EDM) for integration into the national grid.

Lichinga Solar Power Station

• Location: situated in Niassa Province, in northwestern Mozambique
• Capacity: 50MW
• Details: The plant is being developed by a consortium of Gigawatt Global and the Anglican Church of Niassa. The energy generated is to be sold to EDM for distribution in six districts of Niassa Province, to stabilize the national grid.

Chiuta Solar Power Station

• Location: Located in the district of Chiúta, Tete Province, Mozambique.
• Capacity: 40MW
• Details: This project is part of the Renewable Energy Auctions Programme (PROLER) and aims to enhance the region’s energy capacity while promoting sustainable development

• Epsilon Energia Solar: specializes in designing, installing, and operating solar energy solutions for both on-grid and off-grid clients. They offer a range of products, including solar home systems, solar pumps for irrigation and drinking water, and off-grid cold room solutions. ³⁰
• FUNAE (Fundo de Energia): They operate a solar panel manufacturing facility and provide technical assistance and consulting services. FUNAE focuses on rural electrification, solar panel installations, mini-grids, and promoting the rational use of energy resources. ³¹
• Matemo Solar: The company specializes in the design, installation, and maintenance of solar energy systems. They provide a range of services, including rooftop solar panel installations, community solar projects, and large-scale solar farms. ³²
• Fortune CP: Their offerings include solar components (panels, inverters, batteries), off-grid and grid-tied solar systems, battery energy storage systems, energy-efficient LED lighting, solar water heating, and solar water pumping systems. They also provide engineering design, project financing, installation, testing, commissioning, and training. ³³