Mozambique Energy for ALL (MEFA)
Contribution ID : SE-0-SE-6-10475This website displays open data about Swedish aid, which shows when, to whom and for what purpose Swedish aid is paid out, as well as what results it has produced. This page contains information about one of the contributions financed with Swedish aid.
The MEFA Program has three components that respond to key development challenges in Mozambique. The first component entails the construction and taking into operation a new National Control Centre which will be pivotal in expanding power exports. The national electricity utility, Electricidade de Moçambique (EDM) is aiming for a threefold increase), incorporat...
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The MEFA Program has three components that respond to key development challenges in Mozambique. The first component entails the construction and taking into operation a new National Control Centre which will be pivotal in expanding power exports. The national electricity utility, Electricidade de Moçambique (EDM) is aiming for a threefold increase), incorporating more variable renewable energy sources, such as solar and wind, and facilitating inward investments due to availability of much better quality of power supply. The second component will provide nearly 49,000 new connections in support of the Government of Mozambique’s (GoM), Energy for all Plan. The third component targets operational support to the above components, The Programme Objectives are: (i) to increase stability of the Mozambican power system, (ii) enable a large expansion of power sales to Southern Africa Power Pool (SAPP), (iii) expand access to electricity and (iv) assist in improving EDM’s financial sustainability. The program will be co-financed with the African Development Bank and KFW.
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Result
The project is complicated applying different packages and procurement regulations. EDM lack the capacity to manage the project. The embassy intend to strengthen the project implementation unit with consultancy support. The development partners (DP) and EDM agreed on establishing a steering committee SC that meets monthly to review progress, support implementation and provide direct support to the management of the project. AfDB selected to co-chair the SC with EDM until May 2022. KFW was selected for the role to co-chair for 1 year period. During 2022, focus was given to two procurement 1. Consultancy support to the project implementation unit. This will be financed by Sweden, hence No Objection on all stages of the procurement from Sweden is required in accordance with the agreement. The procurement started in 2022 and the consultants expected to start the assignment in mid 2023 2. Owners Engineers assignment. This assignment will also be financed by Sweden hence the requirement for Swedish No Objection. The procurement is supported by Swedfund contracted consultants (SWECO) who completed the feasibility study of the National Control Centre. The procurement progressed albeit slowly and the contract expected to be signed in August 2023. Challenges: Due to the different fund sources and lack of capacity at EDM PIU, there is lack of clear (single) management of the project where each DP focuses on activities financed by own funds. Sweden made efforts to change this approach and involved KFW, EU and AfDB in the different procurement. Meanwhile a division of labour between DPs was opted. Sweden manages the two procurement listed above. KFW follows the social and environmental action plans including any resettlement taken place. Annual Reporting (in accordance with the agreement) is replaced by direct reporting to the Steering Committee. No financial transaction occurred during 2022. Hence the financial report will not be submitted to Sweden. It should be noted that Sweden will not allocate finances for the second component of MEFA project (RBF) as requested by EDM since the finances allocated by AfDB have covered the initial needs for the two provinces. Sweden finances this component through the Multi donor trust fund (ProEnergia ) contribution since Sweden's increased finances to ProEnergia managed by the WB which will cover the rest of the financial needs for the two provinces.
Mozambique is a low-income country in transition with a gross domestic product of USD 417 per capita and a population of approximately 30 million inhabitants. The country has ample renewable energy resources with solar potential at 23,000 GW, followed by hydro (19 GW), wind (5 GW), biomass (2 GW), and geothermal (0.1 GW). Despite this, only one third of the population has access to electricity. In the north of the country, the access rate is 22% which is even below the average for Sub-Saharan Africa of 28%. Provision of electricity services demonstrates disparities between urban and rural areas as 54% of urban population have access compared with only 6 percent of rural population. In rural areas, an overwhelming majority use kerosene and candles to cope with the absence of electricity. Weak infrastructure (including access to electricity) has also been identified as one of the main constraints to inclusive economic development and enhanced competitiveness of the Mozambican economy. On regional level, regional energy deficits, ageing power plants, missing links in regional power connectivity and under-developed backbone transmission lines have been consistently identified as posing major infrastructural challenges in Southern Africa. The region has been suffering from electricity shortages, uneven access rate in some countries, with severe implications for economic growth and social development. Access to reliable and affordable electricity is crucial for inclusive sustainable social and economic growth. The introduction of electricity, in combination with other development interventions such as roads, access to credits, vocational training etc., can facilitate job creation, education, health, and access to communication through enabling of cell phone charging and Internet services. Public lighting and better public infrastructure open possibilities for longer days of various economic activities and increased safety. Public access to safe water supply is other possible secondary effect of electrification. Electrification is expected to benefit women proportionally more than men from improved public services. Mozambique Energy For All Project (MEFA) has three components that respond to key development challenges in Mozambique. The first component entails the construction and taking into operation a new National Control Centre which will be pivotal to better manage electricity transmission for both the national consumption and for export. Such centre will enable efficient management of electricity resources, increase energy efficiency, and enable expansion of the electricity network throughout the country. In addition, and importantly, enable incorporation of new renewable energy generation to the electricity grid. The national electricity utility, Electricidade de Moçambique (EDM) is aiming for a threefold increase, incorporating more variable renewable energy sources, such as solar and wind, and facilitating inward investments due to availability of much better quality of power supply. The second component will provide nearly 49,000 new connections in support of the Government of Mozambiques (GoM), Energy for all Plan. This component aims to complement the ongoing wider electrification programme (Energia para Todos) supported by Sweden through the World Bank Managed Multi-Donor Trust Fund, to expand access to electricity. The third component targets operational support to the above components including capacity development and provision of technical support for the project implementation. It will also support Mozambiques membership of the Africa Trade Insurance Agency and conduct feasibility studies on floating solar power plants and increasing energy efficiency of the utility. The expansion and strengthening of the Mozambican power system through the construction of the National Control Centre (NCC) will have huge positive effects in Mozambique power supply. Through the project, EDM will be able to integrate higher shares of renewable energy generation into its system thus making cheaper power available domestically and regionally. Wind power and solar PV are some of the cheapest sources of new generation capacity for the region, however, integration of variable renewable energy (VREs) is challenging for African utilities as greater degrees of electricity system control are needed as the percentage of VREs increase. It will aid industrialization and job creation as operating the southern and northern supply networks separately is increasingly presenting problems for the utility. Absence of an NCC entails that voltage and frequency control can only be controlled manually, leading to over- and under- voltage and frequency related problems becoming common for both commercial and private consumers. The intervention is also expected to contribute to increase of power trading within the Southern African Power Pool SAAP and enable increased electricity access and optimization of the use generation resources. The NCCs effect on voltage and frequency stability will even assist neighboring countries in deploying more VRE generation. The NCC component is consistent with the ongoing support from Sweden's regional strategy supporting the Southern African Power Pool SPP. The intervention builds upon a long-term Swedish support to the energy sector of Mozambique, and in particular to support to extension of the national electricity grid mainly as to reach people in areas where there has been no commercial value to finance electrification, at least in short-to-medium perspective. The project will contribute to results for the Swedish Development Cooperation on regional and bilateral levels. The project will contribute to the result area on Environment, Climate and Sustainable Natural Resource Management and specifically to increased access to renewable energy and increased energy efficiency. The project results are assessed to contribute both in the short and long term to increased access to renewable energy and increased energy efficiency. The project will also lead to increased entrepreneurship and investments directly in renewable energy but also indirectly through better provision and quality of electricity, an issue to be considered of a bottleneck and cost inflicting to industries and other sectors. The project is also expected to contribute to increased regional integration between the SADC countries through contributing to the increased regional trade in electricity and increase coordination. The proposed intervention also contributes to increased digitalisation through connecting the country with fibre optic cable not only enabling the direct control and management of electricity transmission but also have the potential to service the connected areas with Internet.
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