The German government says it will provide a total of €29 million to support projects aimed at improving the supply of electricity in Mozambique. A media statement from state Mozambique Electricity Supply Authority (EDM) says of this amount, €20 million will be allocated to the Power Transmission Line between Mozambique and Malawi and the remaining €9 million for the company’s Short-term Investment Plan (STIP) -Bidirectional transmission.
“All operations may only be implemented after the entry into force of the agreements between the two governments (Mozambique and Germany) to be completed, and the loan agreements and loan and execution with the German financial institution KfW – Kreditanstalt für Wiederaufbau (“Reconstruction Credit Institute”), reads the statement.
EDM says the country’s electricity supply will stay limited until the end of the decade with demand rising rapidly and as new big hydro projects face delays.
Mozambique’s current generating capacity is around 2,200 MW, mainly supplied by the Cahora Bassa hydroelectric dam. Most of that power is exported to neighbouring South Africa, while only 18 percent of Mozambicans have access to electricity.
Proposed projects include a 1,245 MW plant in the northern part of the Zambezi river where Cahora Bassa is also based, and the 1,500 MW Mphanda Nkuwa plant further downstream.
EDM says power demand, currently at 1,600 MW, was rising 15 percent each year and that growth was over 20 percent in the north where most new mining projects were based.
The two hydro projects are dependent on the construction of a $1.8 billion transmission line between the Zambezia province and the capital of Maputo. Currently power from existing dams is sent to South Africa and then transmitted back to Mozambique.
All of the projects have been delayed for many years, but there is expectation that the coal and gas-rush in the country will give an impetus for the investments to go ahead.