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Mozambique Unveils US$80 Billion Energy Transition Roadmap

Mozambique has unveiled the countries energy transition roadmap at the just concluded COP28 climate conference in the UAE, forecasting about US$80 billion projects investment plan that will expand up to 2050.

The world leaders have converged in United Arab Emirate to reiterate an existing pledge of member countries in cutting down global emissions and setting the global warming temperature to1.5degree Celsius through shifts in fossil fuel development and utilization.

Mozambique has caved a niche at global energy play owing to recent completion and subsequent delivery of her maiden shipment of Liquefied Natural Gas by Coral Sul FLNG cargo in November to Europe. The Mozambique Coral Sul FLNG will eventually transship about 450 billion cubic meters of gas available in the Coral reservoir.

The country entry in global gas exporting market has place Mozambique as clean energy promoter as gas has been seen as an part of energy transition fuel. Based on this singular achievement, plan has been designed to promote clean national development in Mozambique through diversification of other cleaner energy source thereby projecting the country to a regional energy hub centre, while also contributing to the global energy transition. 

The strategy is structured around four pillars and 14 programmes.

In developing Mozambique as a global energy transition hub will not see gas as sole clean energy source it will also entails expanding the national grid to support increased clean energy production through investment in hydropower, solar and wind resources and this investment approach will gradually whittled down the use of fossil fuels from the generation energy mix. 

More than 75% of the energy consumed in Mozambique is already sourced from hydropower. Some US$5 billion is being invested in the 1,500MW Mphanda Nkuwa hydropower project on the Zambezi River.

According to a media source Herald, the government, the Zambezi River has the potential to generate 18GW of hydropower. Other potential projects include the Mphanda Nkuwa Norte (900MW), Cahora Bassa Norte (1,245MW) Lupata (640MW) Boroma (200MW) and Chemba (600MW).

A further US$1.2 billion will be required for transmission grid development, and US$1.2 billion of investment is also envisaged for solar and wind generation.

It is hoped that existing and planned transmission lines connecting to South Africa, Zimbabwe, Zambia and Tanzania will enable Mozambique to play a leading role in decarbonising energy systems in southern Africa.

Pillar two focuses on green industrialisation, with the aim of turning Mozambique into a centre of heavy industrial production for domestic consumption and export. This entails developing integrated industrial corridors such as the Nacala Green Industrial Corridor. The investment required for this flagship project is estimated at US$1.8 billion.

Pillar three aims to achieve universal access to modern energy through mini solar grids (US$0.34 billion) and clean cooking solutions (US$0.17 billion). Energy access currently stands at less than 53%.

The fourth pillar is centred on green transportation and envisages the introduction of electric buses and vehicles and increasing the use of gas-powered transport. It also promotes the use of biofuels, with the overall aim of increasing mobility access for urban populations and drastically reducing the use of fossil fuels and greenhouse gas emissions. The introduction of electric buses in Maputo is estimated to cost US$0.3 billion.

The total public and private investment required to realise the energy transition strategy in full by 2050 has been estimated at US$80 billion, with more than US$3 billion-worth of investments needed to be financed in the next year alone.

The next steps to be taken as outlined at the official launch of the strategy on 2 December include:

  • establishing an energy transition strategy delivery unit to create a single coordinating team for energy transition investments and policy reform programmes;
  • mapping, detailing and planning investments for each programme and presenting them to suitable partners;
  • building investment partnerships with institutions such as the African Development Bank and the World Bank, and the governments of the UAE, UK, Germany, Norway, Sweden and Belgium;
  • and implementing the partnerships formed at COP28, namely the UAE financing initiative to unlock Africa’s clean energy potential and the BESS Consortium.

The government of Mozambique thanked the Tony Blair Institute, Enabel and the British and Belgian governments for their support in developing the transition plan.


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