Mozambique: Renewable Energy Auctions Launched

Maputo — The Mozambican Minister of Mineral Resources and Energy, Max Tonela, on Wednesday said that the Promotion of Renewable Energy Auctions (PROLER) will step up diversification of the energy matrix and contribute to greater access to electricity by consumers.

Tonela was speaking in Maputo at the launch of PROLER, a mechanism for the public bidding for projects in the area which, he claimed, will contribute to a greater capacity for generating renewable energies at low cost to the benefit of the final consumer.

The renewable energy auctions are a new model for public tenders, and for the acquisition of licences to produce electricity based on renewable sources. It is intended to select, in a transparent and competitive way, potential strategic development partners.

“This model is a new paradigm in the attribution of licences for developing new electricity generation infrastructures”, said Tonela. “It prioritises projects with lower costs and better guarantees of implementation”.

At the same ceremony, sale and purchase agreements were signed between the publicly owned electricity company EDM, and the private companies involved in this business, in three power stations in northern Mozambique – two at Cuamba in Niassa province, with a peak production capacity of 18 megawatts and 36 megawatts, and one at Mecufi, in the neighbouring province of Cabo Delgado, with a peak capacity of 26 megawatts.

The agreements were signed by EDM chairperson Marcelino Alberto and representatives of the three companies.

A financing agreement was also signed between the government, represented by Finance Minister Adriano Maleiane, and the European Union, represented by the French charge d’affaires, Samuel Richard, aimed at promoting studies, guarantees, environmental measures, and electrification of the areas around renewable energy projects.

Richard said the Wednesday event marks a turning point in Mozambique’s energy policy. “Developing the country’s energy capacity at a reduced cost through obtaining the most competitive tariff possible is at the centre of the PROLER approach”, he declared.

Source: Agencia de Informacao de Mocambique