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Pre-Identification Of Potential Renewable Energy/Energy Efficiency Investments In Mozambique,

By

Antoine Bossel


EXECUTIVE SUMMARY

The study is part of CABURESA (Capacity Building for Renewable Energy in Sub-Saharan Africa) Project which has an overall objective to strengthen existing and embryonic small and medium-scale enterprises in Sub-Saharan Africa involved or interested in sustainable energy investments. The main aim of the study was to assess potential small and medium scale renewable energy and energy efficiency projects in Mozambique for eventual financing under CABURESA project.

The report is sub-divided into four chapters. The first chapter provides a brief overview of identified renewable energy/energy efficiency investments in Mozambique. The survey provides numerous contacts with over eighty (80) entities identified for further screening to ascertain their legibility for financing under the CABURESA project. Contacts established were sub-divided into three categories of actors: Public, Private and NGOs. Through these contacts, it appeared that few medium or large scale renewable energy projects are currently planned. However, most respondents mentioned small scale projects, mainly solar powered ones related to agriculture or to public facilities such as health centres or schools.

The second chapter discusses the recent developments in Mozambique's renewable energy sector. These developments include: transforming blending of biodiesel in transport fuels into an obligatory requirement and implementation of a national energy funds (FUNAE) among other initiatives. It is noted that some of the developments could provide a sound basis for new renewable energy businesses that could be in line with planned AFREPREN/FWD-CABURESA activities in Mozambique.

Chapter 3 discusses details of the identified potential renewable energy and energy efficiency investments. Most of the projects that were pre-identified through the survey and interviews were mainly at the conception stage and therefore, they still required substantial support to undertake comprehensive technical and financial analysis studies. Nevertheless, the report notes that the survey faced a few challenges in identifying potential renewable energy investment opportunities with the most important constraint being the limited availability of feasibility studies and other relevant background studies/reports on renewable energy development in Mozambique.

The study ends with a chapter summarizing key findings and recommendations on the way forward. The chapter indicates that the ranking of investments provided in the report was taken as a function of the comprehensiveness of available information and in fulfilment of characteristics required for an ideal renewable energy/energy efficiency project using set out guidelines, such as the DANIDA biofuel guidelines.

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