Energy

Mozambique has a rich and diversified energy resource base capable of meeting both domestic demand and contributing to large-scale energy export. The resource base is comprised of hydropower, natural gas, coal, biomass, and a potential of renewable energy sources such as solar and wind. Presently only 12 % of the population have access to electricity, which is among the lowest in southern Africa.

Energy is one of three priority sectors for Norwegian assistance to Mozambique. In Mozambique’s poverty strategy, PARPA II, economic growth and energy has a prioritized and significant role to play in the country’s future development. The Government of Mozambique recognises that the energy plays a central role in enabling improved welfare, economic development and increase government revenue.

Co-operation between Mozambique and Norway in the energy sector has existed since the 1970's, and includes both technical and financial assistance to governmental sector institutions (21 %) as well as investments in transmission and distribution lines (79 %).

Programmes and Projects

Norway carried out an appraisal of our assistance to the energy sector in August 2005. The review was positive to the assistance provided and the achieved results but pointed out that the institutional recipient capacity remains weak.

The Government and the donors have in recent years given priority to improve harmonisation and alignement in the sector. The Norwegian Embassy has, on behalf of the Government and the donors, carried out a study with the objective to assess options that will reduce transaction costs and enhance efficiency by improved donor harmonisation and alignment.

Institutional Strengthening

• Institutional support to National Petroleum Institute NPI (previously DNCH, the National Directorate for Coal and Hydrocarbons): The objective of the assistance is to contribute to the development of the petroleum sector in Mozambique, further institutional development of NPI as a regulatory authority, to enable it to perform its functions in a sustainable and competent way and to provide good governance of the petroleum resources in Mozambique. The assistance includes a co-operation agreement with NPD (the Norwegian Petroleum Directorate) which includes institutional strengthening and competence building based on transfer of experience between two similar governmental institutions. The current agreement of NOK 35 million was signed the 30th of May 2002. The project is expected to be completed in 2006. A new programme is currently under preparation.
  
• Institutional Support to ENH (Empresa Nacional de Hidrocarbonetos E.P): The goal of the assistance is to increase social and economic growth in Mozambique through commercial utilisation of petroleum resources in a sustainable manner. The current agreement was signed the 6th of December 2002, with an allocation of NOK 11,3 mill. The programme is close to completion.
  

• Institutional support to the Ministry of Energy - ME (previously DNE National Energy Directorate). An agreement of NOK 30 mill was signed the 21 September 2007 to cover the period 2007-2011.

Rural Electrification projects

The support to transmission and distribution line projects is directed through the state owned Electricidade de Mocambique E.P. (EDM). The main projects at present:

• Gurué-Cuamba-Lichinga: Electrification of the Zambezia and Niassa Provinces. Construction started in 2002. The project is co-financed with Sweden. Total allocation: NOK 305 mill, whereas the Norwegian part is NOK 189,1 mill. The project goal is an increased economic activity and enhanced living conditions in the area influenced by the new transmission line. The objective of the project is to connect the Niassa Province to the national electricity grid and supply with stable power from Cahora Bassa. All main activities planned are finished and some extra work in Cuamba will be finalised in 2009.  

Norwegian Petroleum Directorate: