17 September, 2021 News

Government of Mozambique Approves Off-grid Energy Regulation Taking a Key Step Towards Universal Access

15 September 2021 – The Government of Mozambique approved in the Council of Ministers, by Decree, the Regulation for Off-Grid Energy Access. This regulation is the result of the Government’s efforts to recognise the importance of the sector to catalyse rural socio-economic development, leveraging private sector investment and improving the living conditions of millions of people. Mozambique joins neighbouring countries, by putting in place a regulatory framework that will provide greater clarity to all actors in the off-grid energy sector. This will ensure the necessary conditions for the private sector to develop its activities and protect investments in a diverse set of technologies applicable to the off-grid context, such as solar home systems, mini-grids, and improved cooking solutions.

This regulation is the result of the visionary and committed work of the Government of Mozambique, with special reference to all the institutions involved, namely the Ministry of Mineral Resources and Energy (MIREME), the Energy Regulatory Authority (ARENE), and the National Energy Fund (FUNAE). The BRILHO Programme, funded by the UK Government’s Foreign, Commonwealth and Development Office (FCDO) and implemented by SNV Netherlands Development Organisation, expresses its gratitude for the trust placed in this partnership by the Government of Mozambique. BRILHO is grateful for having been an integral part of the process to develop this new regulation, from its initial conception to operationalisation. The BRILHO Programme is mandated to catalyse energy access through Solar Home Systems, Green Mini-Grids and Improved Cooking Solutions, to benefit 1.5 million Mozambicans and 15,000 small businesses by 2024. The approval of this regulation represents a big step and sets high expectations for the sector. This sentiment is reflected in the positive reactions from the different key stakeholders in the sector.

António Osvaldo Saíde, PCA – FUNAE, FP, says:

"The regulation for off-grid energy is the leverage for the entry of strategic partners, the private sector, as it clarifies the rules of the game in the development of this unequivocal path for the achievement of universal access in 2030. The Government’s vision and actions to create an enabling environment for private sector investments demonstrate a commitment to transformation and social inclusion, and that consequently promotes economic inclusion in remote areas."

Sergio Dista, Private Sector Development Adviser at BHC Maputo, commented:

"Our financial and technical support to the Government of Mozambique through the BRILHO programme forms part of the UK Energy Africa campaign. The approval of this regulation is one step ahead to accelerate the expansion of off-grid energy markets in Mozambique and, it will help to achieve universal energy access by 2030."

According to Vivian Vendeirinho, President of AMDA (Africa Mini-Grid Developers Association) and CEO of RVE.SOL:

"The new regulation allows for decentralised renewable energy providers to build mini-grid systems that will provide reliable, sustainable and affordable electricity to underserved rural communities in Mozambique. This will anchor their socio-economic development opportunities, so they are not left behind as the economy of the country evolves and grows. The end result will be the empowerment of rural communities, more jobs and trading opportunities for Mozambique."

Javier Ayala, Team Leader of the BRILHO Programme and Energy Sector Leader for SNV Mozambique, commented:

"This represents a major achievement for the off-grid sector in Mozambique. It will contribute to accelerating and increasing access to energy through solar home systems and green mini-grids for electrification, and clean cooking solutions, benefiting households and businesses with a greener, more inclusive and sustainable economy. The required regulatory conditions are now provided for the businesses to initiate and scale up their operations in Mozambique’s off-grid energy market; the BRILHO Programme is ready and available to provide the financial and technical support for their implementation."

The Decree will be accompanied by specific regulations that will provide Mozambique with a complete regulatory framework, which will act as an anchor for the growth and sustainable development of the off-grid energy sector.