Access to modern sources of energy influences many aspects of people’s lives related to health, economic activities, education and environment. Norway has supported energy cooperation projects for many years. The Initiative for Clean Energy aims to increase access to clean energy to an affordable price, based on sustainable management of natural resources and efficient use of energy. By supporting development of clean energy, Norway wants to contribute to economic and social development and to the international effort to reduce emissions.
Mozambique has a rich and diversified energy resource base with a potential to meet both domestic demand and contributing to the country’s foreign trade through 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, but so far, hydropower represents 90% of installed production capacity.
In Mozambique’s poverty reduction strategy and national development plans, economic growth and energy have a prioritised and significant role to play in the country’s future development. The Government of Mozambique recognises that energy plays a central role in enabling improved welfare, economic development and increase government revenue. Yet Mozambique is facing large challenges in managing the resources and in reaching its ambitions of providing energy to the population at large. Access to energy in districts and areas without grid connection has been compensated with solar power and generators, particularly benefiting social services facilities such as schools and clinics.
Norwegian support and cooperation in the Energy Sector
Cooperation between Norway and Mozambique in the energy sector has existed since the 1970's. The support has focused on technical and financial assistance to governmental sector institutions as well as investments in transmission and distribution lines. In November 2012, a new Memorandum of Understanding was signed between the two countries confirming the intent to continue and reinforce the cooperation in the energy sector. According to the MOU, the cooperation will in the years to come focus on the following main areas:
- The capacity of Mozambique’s main public institutions in the sector to ensure sustainable energy resource management and an efficient energy system;
- The legal and institutional framework for energy sector development
- Quality of supply, hereunder physical infrastructure, system operations and management, and investment framework
- Rural electrification
- Mozambique’s role in the regional energy perspective.
Current energy collaboration includes several components. The Norwegian institutions NVE (the Water and Energy Directorate) and Statnett cooperate with the Mozambican Ministry of Energy and the Electricidade de Moçambique (EDM) to develop appropriate legal and institutional framework by building capability and capacity of the Mozambican institutions. Norway continues to support the expansion of transmission and distribution lines through EDM. Furthermore, the highly experienced Mr. Eivind Reiten, former minister of Energy of Norway, called 'The father of the Norwegian Electricity Law', will regularly travel to Mozambique to discuss priorities and challenges with the Minister of Energy.
Mozambique is a provider of clean, hydropower-based energy to the Southern African region. Norway is, in cooperation with World Bank, supporting the planning and implementation of two major new transmission lines from the hydro-power resource rich north-western region of Tete to Maputo and South Africa. The support is provided through a trust fund with the World Bank, as well as support to consultancy services related to the development of the project. An interconnector transmission project linking Mozambique and Malawi will also be supported through the Trust Fund.
Mainstreaming Gender in Energy Cooperation has the objective to ensure that women and men have equal opportunities to participate in and benefit from the country’s energy sector development. The programme involves Ministry of Energy, Ministry of Natural Resources, Ministry of Women and Social Action, alongside other relevant public institutions such as EDM, Fundo Nacional de Energia, Empresa Nacional de Hidrocarbonetos and Instituto Nacional de Petróleo.
Electricidade de Mocambique (EDM) and Technical Assistance Large Generation and Transmission Projects (TA-large)
The Norwegian Embassy have a long-standing cooperation with EDM. In 2008, the Embassy entered a new agreement with EDM, regarding their Technical Assistance Large Project. The TA large project is responsible for developing and updating the electricity grid in the country and export power to countries in the region. As one of the main objectives and purposes of TA Large is sustainable management of energy resources and an efficient energy system in Mozambique
This technical assistance in business development is viewed by EDM to be very valuable and successful
The primary role of the TA-EDM is very clear—gap filling. The country agreement stated that the purpose of the project was to strengthen EDM’s business capability in the “development, structuring, financing, and implementation of large generation and transmission projects.” The assistance involves several tasks including developing model agreements for project development and management as well as negotiating agreements. The second role of the TA-EDM project is to build the capacity of EDM staff involved in business development. Restated, the project had two goals--business development and capacity development though the two were to be linked by involving EDM staff in the technical areas of business development (adopting model agreements and by EDM seeing Norconsult advisors in action in negotiations).
Short Time Investment Program (STIP)
The Short Time Investment Program STIP is a new project, implemented in 2014 – with the support of the Embassy from 2015. The aim of STIP is to upgrade the Mozambican electricity grid and increase the production of renewable energy. The Embassy supports two of STIP sub-programs: the Scatec Solar/Macuba subproject and CTM sub-project. The objective of the STIP is to define, finance and implement a programme of short-term priority measures that will alleviate the most critical supply constraints in the EDM transmission grid, thereby promoting and facilitating much needed economic growth and social development.
CTM aims to improve the sub-station in Maputo, to improve the industry and general living conditions for the populated area.