Economic and sustainable development of the power sector of Mozambique

Abstract

Mozambique has a vast potential of energy resources which are little exploited, particularly in the power sector. Mozambique’s diverse energy resource includes hydropower, natural gas, coal, biomass, solar and wind. Despite this, the country still faces constraints in increasing the level of access to energy. Therefore, the sustainable use of energy resources and the expansion and provision of reliable energy services for all districts is central to addressing many issues related with the development of the country. According to the Mozambican power utility, “Electricidade de Moçambique” (EDM), practically 97 of Mozambique’s electricity is generated from hydropower, with total installed capacity of 2179 Megawatts but due the existence of large reserves of coal and gas, the country is also intending to generate 1100 Megawatt from coal, 1790 Megawatt from gas and to increase the generation from hydro. However, before choosing those options regarding energy resources usage, it is important to assess the sustainability of the options from both socio-economic and environmental perspectives. Policies must wisely track reliable and affordable modern energy supplies and reduce the negative environmental impacts related to energy production and use and capital investments in equipment and energy infrastructure are crucial for developing the energy system. This study aims to examine socio-economic and environmental aspects of energy resource usage in Mozambique and the evaluation of Mozambique’s power supply alternatives into the future.