Mozambique endorses massive $80 billion energy transition plan

Mozambican President Filipe Nyusi (cnbcafrica) ©provided by Business Insider Africa

Mozambique’s government has endorsed a strategy to reduce the country’s reliance on fossil fuels, estimating that its implementation by 2050 will incur a cost of $80 billion.

・Mozambique’s government has endorsed a strategy to reduce the country’s reliance on fossil fuels, estimating that its implementation by 2050 will incur a cost of $80 billion.

・This initiative is aimed at securing financial support for the development of the nation’s economy.

・Despite being one of the world’s poorest nations, Mozambique possesses rich reserves of hydropower, wind, solar, and natural gas resources.

This initiative is aimed at securing financial support for the development of the nation’s economy.

To achieve this, the government plans to integrate 2,000 megawatts of hydropower capacity by 2030 and expand the transmission grid to accommodate the incorporation of additional renewable energy sources, as stated by the government.

Bloomberg reported that President Filipe Nyusi is set to unveil the comprehensive program at a December 2 event during the COP28 international climate summit in Dubai.

“Mozambique has major potential to be a global leader in climate-aligned development. The ambitious ETS lays out a clear pathway for harnessing these assets to enable sustainable nationwide growth while supporting emissions reductions.” the statement sent to Bloomberg read.

Mozambique joins a growing list of developing nations seeking international funding to facilitate their transition to cleaner energy sources.

Countries such as South Africa, Indonesia, Vietnam, and Senegal have garnered commitments of financial support from some of the world’s wealthiest nations to reduce their dependence on coal and other fossil fuels. For example, South Africa, heavily reliant on coal for its economy, recently secured $676 million in grants from affluent nations to support its energy transition.

Mozambique energy status

Mozambique serves as a prime example of a low-emission, energy-poor nation. The country has remarkably low electricity consumption, with the entire population estimated to consume less power annually than what UK households typically use to operate washing machines.

Although the country is one of the world’s poorest nations, Mozambique possesses rich reserves of hydropower, wind, solar, and natural gas resources. The country also boasts deposits of crucial materials for the green transition, including lithium and graphite, which are vital components in batteries.

In September, Marcelina Mataveia, Mozambique’s national director of energy, disclosed that discussions on funding had taken place with Belgium, Germany, the UK, and the United Arab Emirates.

The government said it aims to hold more auctions to encourage the building of privately owned solar and wind power plants and build “green industrial parks” to encourage the processing of its minerals.

It also plans to increase the proportion of ethanol and biodiesel added to gasoline and diesel sold in the country and promote the use of vehicles that run on electricity and compressed natural gas.

It aims to have universal access to electricity by 2030 and intends to embark on a drive to persuade millions of people who rely on wood and charcoal for cooking, to use more efficient methods.