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Mozambique Energy Sector Policy Note

GAS RESOURCES POWER GRID TRANSMISSION CAPACITY SULPHUR DIOXIDE POWER PLANTS RENEWABLE RESOURCES RESIDENTIAL CONSUMERS DOMESTIC GAS SOLAR HOME SYSTEMS ELECTRICITY TARIFF POWER STATIONS GAS FACILITIES ACTIVITIES ACCESS TO MODERN ENERGY RENEWABLE ENERGY PROJECTS GENERATION SURPLUS POWER COST OF ELECTRICITY WIND ELECTRICITY SYSTEM ENERGY PLANNING EMISSIONS GAS PRICES SPOT’ PRICE POWER PROJECT GAS FIELDS GAS WHOLESALE PRICE PRICE PEAK DEMAND VOLTAGE POWER SYSTEM WIND POTENTIAL SOLAR PANEL BIOMASS GENERATION CAPACITY LNG PETROLEUM GRID EXTENSION OIL POWER SYSTEMS POWER GENERATION THERMAL PLANT ENERGY MIX ENERGY SOURCES SUSTAINABLE ENERGY POWER SECTOR DOMESTIC SUPPLY GAS PRODUCTION SOLAR HOME SYSTEM ELECTRIFICATION OPTIONS WATER RETAIL CUSTOMERS ENERGY RESOURCES GAS PLANT DISTRIBUTION LOSSES ELECTRICITY SUPPLY GRID POWER SOLAR ENERGY PRICE ELASTICITY THERMAL ENERGY COAL RESERVES FUELS THERMAL POWER POWER PRODUCERS POWER PURCHASE AGREEMENTS KEROSENE LIGHTING RENEWABLE GENERATION ACCESS TO ENERGY POWER DEMAND GRID CONNECTIONS MINERAL RESOURCES WHOLESALE PRICES DEMAND FOR ELECTRICITY POWER TRADE BALANCE SOURCE OF ENERGY ELECTRICITY DEMAND COST OF GAS HYDRO POWER UTILITIES ENERGY NEEDS DEMAND FOR ENERGY PHOTOVOLTAIC SYSTEMS POWER ELECTRICITY SALES ELECTRICITY GRID ELECTRIFICATION CEMENT SUPPLY COSTS HYDROPOWER ELECTRICITY TARIFFS ENERGY STRATEGY COST OF ENERGY TRANSMISSION SYSTEM TRANSMISSION LOSSES GENERATING CAPACITY HYDROCARBONS HYDROPOWER PLANT TARIFF LEVELS SOLAR POWER PRIMARY ENERGY POWER PRODUCTION ENERGY DEMAND ACCESS TO ELECTRICITY NATURAL GAS NATURAL GAS EXPLORATION POWER PRODUCER QUANTITY OF GAS DISTRIBUTION GRID TRANSMISSION LINE INVESTMENT ENERGY DEVELOPMENT GRID SYSTEMS COAL TARIFF FUEL DISTRIBUTION NETWORK DRILLING FACILITIES AVAILABILITY HYDROPOWER GENERATION RURAL ELECTRIFICATION INVESTMENTS CONVERSION RATE RESIDENTIAL DEMAND RENEWABLE ENERGY ELECTRICITY PRODUCTION DIESEL KEROSENE PIPELINE TRANSMISSION LINES PRICES APPROACH POWER PLANT GAS EXPLORATION ENERGY
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Washington, DC
Africa | Mozambique
2016-06-07T18:04:14Z | 2016-06-07T18:04:14Z | 2015-11-30

This Energy Sector Policy Note is intended to support the Government of Mozambique in determining priorities for policy decisions with the aim of delivering efficiently produced, technically and financially sustainable electricity supply to the Mozambican population. To support the development of recommendations, this Note includes simulation analysis based on the current finances of the sector. Electricidade de Macambique’s (EDM) corporate financial model was adapted for this work. Targets for electrification are based on discussions with government officials. EDM’s current generation pipeline and its timing was taken as a given in order to simulate investment needs and evolution of sector finances under various tariff and funding availability assumptions. The various simulations and the broader sector quantitative and qualitative discussion should support policy formulation and prioritization going forward. The power sector in Mozambique faces three key challenges: i) to provide reliable and efficient electricity supply to its customers; ii) to cope with the increase in the electricity demand from its current (and future) customer base by expanding its generation and transmission capacity; and, iii) to provide access to electricity to the vast majority of the population. The importance of the timing of new generation to export power to South Africa also points to the importance of the backbone transmission project to evacuate the power from the center of the country – thereby enabling exports. Increasing access in line with Government targets will require major investments. The Government needs to consider the trade-offs between the ambition of the access targets imposed upon EDM and the sector’s broader financial viability for carrying out operations, maintenance and investment. Relaxation of the access target so that the 50 percent target is achieved by 2030 instead of 2023 gives EDM more liquidity in the first years.

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