Mozambique: Germany and EU Pledge 68 Million Euros for Electricity Projects

Maputo — German cooperation and the European Union, through the KFW programme, have pledged to disburse 68 million Euros (about 74 million US dollars) to the Mozambican state to promote electrification projects in off-grid areas, based on renewable energies.

The guarantee was given recently by the German Ambassador, Ronald Münch, during the announcement of renewable energy auctions to be launched in the coming months for private operators.

"German cooperation and the European Union are providing a grant of 68 million Euros for the implementation of renewable energy programmes. The intervention aims to promote the participation of the private sector in the transition to green energy, improving the conditions and incentives for private sector investors, reinforcing the capacity to use renewable energy solutions in the public sector, at a time when the political and regulatory framework is favorable to new investments in the sector', he said.

According to the diplomat, the initiative will stimulate competition, enabling competitive and favorable tariffs for suppliers and end consumers, boosting the socio-economic impacts of the productive use of energy and ensuring the financial and operational sustainability of electrified communities.

As part of the electrification of off-grid areas, the National Energy Fund (FUNAE) recently installed the photovoltaic plant at the Mahel Administrative Post, in Magude district, bringing to a close the cycle of electrification of the Administrative Posts in Maputo province. There are 26 administrative posts in the province. 23 of them are now supplied with electricity from the national grid, and the remaining three by the government's Energy Fund, FUNAE, through the off-grid system.

In order to improve the coverage and supply of energy in remote areas, FUNAE is investing in the construction of 19 electricity generation mini-grids with a capacity of between 100 and 200 megawatts a project that should benefit around 7,000 families, as part of the national programme for universal access to energy by 2030.

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