Mozambique energy report

• The government aims to reach an electrification rate of 100% by 2030, up from 44% now, and to double the hydropower capacity by 2025.
• The country targets to reduce GHG emissions by 20% in 2025 under condition of international support.
• EDM is responsible for electricity generation, transmission, and distribution.
• Eni & ExxonMobil and TotalEnergies are the concessionaires of the huge deep water offshore gas blocks.
• The country has huge offshore natural gas resources that could turn the country into a large LNG exporter.
• Over 80% of the natural gas production is exported to South Africa.
• Hydro represents around 80% of the electricity production.
• The country is fully dependent on the international market for its oil supply.
• Energy prices are regulated.
• Electricity prices are subsidised since 2012 because of the increasing cost of supply due to expensive gas-based power generation from IPPs.
• Gasoline and diesel prices are in line with regional averages.
• Per capita energy consumption is very low.
• Biomass is the main energy source (68%).
• The first LNG export terminal will start operating in 2022. The future of the two other large LNG projects, adding up to 30 Mt/year, is uncertain due to security issues.
• The abundant gas resources favour the construction of new gas-fired power plants.

• Institutions & Energy Policy

  MIREME, Ministry of Mineral Resources and Energy is responsible for the overall policy and institutional and regulatory framework, as well as setting energy targets and strategies.

  The management of forests is the responsibility of the National Directorate of Land and Forestry of the Ministry of Agriculture and Food Safety.

• Energy Companies

  Electricity:

  EDM, Electricidade de Moçambique, is the vertically integrated national power utility (100% State owned).

• Energy Supply

  Gas:

  Mozambique is one of the two East African countries (with Tanzania) that produce natural gas. Production started in 2004 and increased rapidly to 4.6 bcm in 2015; it was stable until 2019 and rose by 5% in 2020. Over 80% of the gas produced is exported to South Africa via the Temane-Secunda pipeline.

• Energy Prices

  Electricity:

  Electricity prices are regulated by the ARENE and are progressive (inclining block rates). Since 2012, electricity prices are subsidised, as the average cost of supply exceeds the average selling price, and the spread is growing over the years, reaching 60% in 2020, although several tariff adjustments have been implemented.

• Energy Consumption

  Per capita consumption is around 0.36 toe in 2020, down from its 0.39 toe peak in 2015, which is 45% below the African average. Per capita electricity consumption has remained quite stable since 2010 at around 440 kWh, which is 15% below the African average (2020).

  Graph: CONSUMPTION TRENDS BY ENERGY SOURCE (Mtoe)

• Issues & Prospects

  Electricity:

  According to EDM's Integrated Master Plan (2018-2043), the company expects power demand to increase by 6%/year to 35.4 TWh in 2043. To meet this demand, up to US$19bn in investments will be deployed, adding over 10 GW into the grid (4 200 MW of hydropower, 2 000 MW of coal-fired, 8 500 MW of gas-fired, 60 MW of biomass, 530 MW of solar, and 150 MW of wind).

• GENERAL OVERVIEW
• INSTITUTIONS AND ENERGY POLICY
• ENERGY COMPANIES
• ENERGY SUPPLY
• ENERGY PRICES
• ENERGY CONSUMPTION
• ISSUES AND PROSPECTS
• DATA TABLES
• ABBREVIATIONS
• GLOSSARY

Download the Table of Contents

Below is a list of the Mozambique energy market report graphs:

• GRAPH 1: CO₂-energy emissions (MtCO₂)
• GRAPH 2: Installed electric capacity by source (2020, %)
• GRAPH 3: Gross power production by source (TWh)
• GRAPH 4: Power generation by source (2020, %)
• GRAPH 5: Gasoline & diesel prices (US$/l)
• GRAPH 6: Electricity prices for industry and households (US$c/kWh)
• GRAPH 7: Consumption trends by energy source (Mtoe)
• GRAPH 8: Total consumption market share by energy (2020, %)
• GRAPH 9: Final consumption market share by sector (2020, %)

In the Mozambique energy market report you will find the following tables:

• Economic Indicators: Annual historical data including population, GDP growth, imports and exports, inflation rate, energy security and efficiency indicators, CO₂ emissions.
• Supply Indicators: Historical data including oil and gas reserves, electric and refining capacity, energy production, power production and external trade. All are detailed by energy source.
• Demand Indicators: Historical data including consumption per inhabitant, consumption trends, total consumption by energy source, final consumption by energy source and sector, and electricity consumption by sector.
• Energy Balances: Single table displaying the overall energy industry balance per annum, also graphically displayed by energy sub-segment.
• Infrastructure Projects: Covers power plant projects by energy, technology, status and operator.