02/12/2022

Government of Mozambique approves regulatory framework for off-grid access to energy

During an energy access conference held last week in Maputo co-organised by SNV, the Government of Mozambique announced the approval of regulation to improve the market for off-grid energy.

During the first "Off-Grid Energy Regulatory Framework, A Regional Perspective", the Government of Mozambique announced it has developed and approved with the competent bodies within the Ministry of Mineral and Energy Resources the package of technical regulations complementing Decree 93/2021 Regulation on access to off-grid energy. This is part of its efforts to ensure universal access to energy by 2030.

With the approval of these regulations and the implementation of subsequent formalisation and publication steps, the path to accelerated energy access is becoming a reality.

The list of regulations and instruments includes regulation on concessions for mini-grids and registration for energy services; Regulation on technical and safety standards; Regulation on interconnection; Regulation on the quality of service and commercial relations; and regulation on mini-grid tariffs, among other instruments.

This regulatory framework marks a new era for the energy sector, especially for mini-grid developers and operators who can now work more efficiently in Mozambique. Therefore the country joins neighbouring countries with mechanisms to catalyse the off-grid energy sector by ensuring the necessary conditions for the private sector to accelerate its investments. Also, to help scale operations in diverse technologies applicable to the off-grid context, such as solar home systems, mini-grids and improved cooking solutions.

Image of man speaking

Simon O'Connell, SNV CEO speaking the energy event in Maputo

A panel session during the event

A panel session during the event

The Energy Regulatory Authority (ARENE) developed the regulation in collaboration with the National Energy Fund (FUNAE), the Ministry of Mineral Resources and Energy (MIREME), the BRILHO Programme and specific contributions from other entities. The package represents a strategic leap in providing quality energy solutions to the entire population, including those in off-grid areas.

This important advance, announced in the context of the 1st Regional Conference on the Regulatory Framework for the off-grid energy sector, comes at a time when the Government of Mozambique is preparing to initiate the implementation of the new framework.

'This regulatory framework for off-grid energy is solid, resulting from intense work that the Government of Mozambique led with continued support from the SNV BRILHO team. We are committed to the development of the off-grid energy sector, where the private sector plays a central role. The private sector is recognised as a partner of the Government on this path for the country to achieve universal access targets by 2030.' _-_António Saíde – Vice - Minister of Energy and National Resources

'I_nvestment in the off-grid sector is critical for human development and social growth, as it is part of the measures to reduce and mitigate the impacts of climate change_.' - Dominic Ashton – Development Director of the United Kingdom High Commission

'The regulatory framework will allow leveraging of private investments, which is key to achieve the targets set by the national electrification strategy.' - Mette Sunnergren – Ambassador of the Kingdom of Sweden.

'The work developed in the context of the partnership of the Government of Mozambique with SNV - BRILHO is of immense quality, which leads SNV to have as a plan its replication in other geographies.' _-_Simon O' Connell – CEO, SNV

'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, 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'. - Javier Ayala, Team Leader of the BRILHO Programme and Energy Sector Leader for SNV Mozambique