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IEA (2025), Mozambique 2024, IEA, Paris https://www.iea.org/reports/mozambique-2024, Licence: CC BY 4.0
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Recommendations for Mozambique
To reach its objectives, the government of Mozambique could consider the following actions in the various areas:
General energy policy
- Strengthen institutions and regulatory frameworks to enable the long-term development of diversified energy sources, with continuous capacity building and training efforts that leverage international assistance and the country’s universities.
- Build co-ordination mechanisms that improve governance and transparency, positioning the Ministry of Mineral Resources and Energy to lead co-ordination with key stakeholders, including other government bodies, donors and investors.
- Continue strengthening the Directorate of Planning and Cooperation by equipping it with essential tools and skills for advanced data management in the energy sector.
- Create a data mapping and collection strategy to identify crucial energy data types needed for decision making, aiming to enhance the accuracy, timeliness and completeness of energy data, especially demand-side metrics.
- Establish regulations and procedures for data acquisition and sharing in the energy sector, as well as a centralised data repository that is accessible to all sector stakeholders, to enhance inter-sectoral communication and data integration, with a particular focus on geospatial data.
Access to modern energy
Access to electricity
- Strengthen the Integrated Planning and Cooperation Unit for Electrification and ARENE through capacity building and assessment tools, with the aim of accelerating the planning and deployment of electrification programmes while also improving regulatory oversight.
- Develop a robust data management infrastructure (including GIS data) for comprehensive planning and data sharing with the private sector, with the aim of co-ordinating decision making between on-grid and off-grid electrification.
- Actively co-ordinate funding sources and use strategic financial tools, such as grants and concessional finance, to improve the viability of off-grid solutions with a focus on productive uses of electricity to attract private investment at scale.
Access to clean cooking
- Formalise inter-ministerial collaboration to enhance the integration of clean cooking into national policies and its Nationally Determined Contribution while implementing financing programmes dedicated to clean cooking solutions.
- Establish a national carbon credit framework with transparent regulations to facilitate streamlined access to carbon markets for clean cooking projects.
- Establish standards for improved cookstoves to guarantee quality and efficiency and foster a market-driven, business-friendly environment that encourages investment and innovation, with a focus on locally produced technologies.
Electricity
- Improve capacity for power system modelling to inform planning scenarios and improve the integration of generation assets (including thermal, hydropower, solar PV, wind) and exports.
- Expand and modernise the transmission and distribution networks to enable least-cost dispatch. Plans for the optimised use of existing and future power capacity should include integrated cost-benefit analyses on various interconnection scenarios for the southern and central-northern power systems and build on an updated electricity master plan.
- Update the tariff structure to gradually improve cost-reflectivity while embedding incentives for energy efficiency, based on a transparent and dynamic formula that takes key cost drivers into account and protects vulnerable customers.
- Review the market regulations, grid code and licensing procedures to ensure consistency with the new Electricity Law; provide certainty to IPPs, investors and off-takers regarding market access; and standards for operations, equipment quality and quality of service.
Renewable energy
- Prioritise procurement of new generation via auctions and the standardisation of processes and contract terms to reduce the cost of power purchased by EDM. This will require adequate staffing and other resources to process proposals.
- Update the 2014 Renewable Energy Atlas to help more potential developers identify the most prospective project sites, including those that can be offered through auctions.
- Conduct a holistic assessment of hydropower assets, including power system interactions, hydrological implications, adaptation requirements in response to climate change and compatibility with other water uses such as irrigation.
- Support the development of modern bioenergy, notably by updating the biomass strategy and creating implementation mechanisms to develop biomass, biofuels and biogas.
Natural gas
- Continue the dialogue with international gas developers to involve them in the social and economic development of local communities, including through implementation of the energy access components of the Energy Transition Strategy.
- Continue exploring opportunities to use natural gas resources domestically, including as a hedge against potential changes in international LNG markets.
Coal
- Develop a national strategy to prepare for an eventual phase-out of coal production and exports.
- Work with international partners to manage the consequences of a phase-out, including the social and environmental impacts on mining communities.
- Continue plans to promote the country as a destination for manufacturers seeking a lower carbon footprint for their exported products in order to diversify the country’s economy.
Downstream oil
- Continue to pursue plans to introduce a mandate to blend domestically produced biofuels with imported petrol and diesel while ensuring that the biofuels are produced and sourced in a manner that does not increase net emissions.
Energy efficiency
- Continue consultations on the EEE with enhanced ministerial co-ordination to rapidly develop, adopt and enforce a legal framework for energy efficiency.
- Ensure energy efficiency is taken into consideration during the development of long-term energy sector planning and reforms through demand-side planning.
- Increase institutional capacity through training programmes on energy efficiency in collaboration with international partners and through an increase in dedicated staff across ministries.
Energy, environment and climate change
- Conclude the preparations of a second NDC with a 2035 timeframe, as well as the Biennial Transparency Report submission to report on progress made in the first NDC.
- Include methane management in the upcoming second NDC, in order to address emissions from bioenergy, coal and gas (e.g. biogas for clean cooking, coal-bed methane recovery, limits to flaring and venting, and methane capture in power generation).
- Update the National Climate Change Adaptation Plan to review risks and potential measures to reduce impacts, with a view to mobilising support from international funds.
Energy investment
- Build on the Energy Transition Strategy by creating sub-sector roadmaps with clear targets that identify where concessional financing is needed, in co-ordination with development partners and financiers.
- Review fiscal incentives for clean energy technologies to ensure that energy and fiscal priorities are aligned, in particular in the off-grid sector allowing end users to access affordable solutions for electricity and clean cooking.
- Undertake a blended finance needs assessment through engagement with domestic and international commercial financial institutions to help identify where concessional finance can suitably be deployed to mobilise private capital.
Critical minerals
- Build on its Mining Law to establish a legal framework for minerals that are considered strategic and promote the formal development of such resources, articulating with international partners on potential offtake agreements to lower financing costs and facilitate investment.
- Create a structured process for systematic resource assessment and project development, including mechanisms for data disclosure and provisions that encourage the optimal use of resources (e.g. suspension of rights in areas with no investment for several years).
- Promote the beneficiation of domestic mineral production in co-ordination with energy plans, allowing the development of anchor clients and grid expansion while creating local added value (e.g. the Balama pilot for spherical graphite production could be expanded).