Mozambique Energi för Alla (NCC)
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Resultat
The follow up will focus on component 1 and 3 of the project. Component 2 concern densification of electricity connections in two provinces and fully financed by AfDB. No Swedish funds are allocated for the puropose but results should be followed up and required in EDM reporting to the embassy. It is recommended to discuss with Sida regarding reporting on results not directly financed by Sweden but was unlocked by Sweden ability to finance comp 1 and 3. Under 2023, three procurements where concluded (Comp 1 and 3) Owners Enginner (OE) assignment. The OE is procured by EDM in accordance with SPG. The contract is fully financed by Sweden entailing the need for follow up regarding the required No Objection process as stipulated in the agreement. The contract will also requires follow up regarding invoicing, currency, exchange losses, VAT (paid by EDM). The MC assignment (below) include allocation for the follow up. The contract will be valid upon obtaining Tribunal Adminstrativo and Ministry of Finance approval delayed due to delay in translation of the documentation to portuguese. Project Implementation Unit Technical Assisstance (PIUTA). The contract is fully financed by Sweden and signed between EDM and EDF. The assignment purpose is to provide EDM with the capacity to manage the project. Similar follow up requirement as above. Monitoring consultancy (MC): the contract is signed between the embassy and monitoring consultant team, Ann Kämpe Consulting. The monitoring team has the different required capacities and competencies for follow up of the project. Environmental and Social Assessments. Sites for the new control centres include land aquasition entailing all the required approval. It also include resettlement issues that requires close follow up. KFW social expert is providing the needed support, KFW also finances the social consultants conducting the required studies. Satisfactory progress to date
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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