Mozambique Energy Sector Policy Note
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 Moz...
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| Format: | Report |
| Language: | English en_US |
| Published: |
Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/05/26284799/mozambique-energy-sector-policy-note http://hdl.handle.net/10986/24441 |
| Summary: | 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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