German cooperation and the European Union, through the KFW program, have pledged to disburse €68 million (about $74 million) to Mozambique to promote electrification projects in off-grid areas using renewable energy.
The announcement was made by German Ambassador Ronald Münch during the reveal of upcoming renewable energy auctions for private operators.
Münch stated, “German cooperation and the European Union are providing a grant of €68 million for the implementation of renewable energy programs.
This initiative aims to promote private sector participation in the transition to green energy, improve conditions and incentives for private investors, and enhance the public sector’s capacity to use renewable energy solutions, especially with a favorable political and regulatory framework for new investments.”
The initiative is expected to stimulate competition, leading to competitive and favorable tariffs for suppliers and end consumers, while also boosting the socio-economic impacts of productive energy use and ensuring the financial and operational sustainability of electrified communities.
As part of its efforts to electrify off-grid areas, the National Energy Fund (FUNAE) recently installed a photovoltaic plant at the Mahel Administrative Post in Magude district, completing the electrification of Administrative Posts in Maputo province.
Of the 26 administrative posts in the province, 23 are now connected to the national grid, with the remaining three powered by FUNAE through off-grid systems.
To further improve energy coverage and supply in remote areas, FUNAE is investing in the construction of 19 electricity generation mini-grids with capacities between 100 and 200 megawatts.
This project is expected to benefit around 7,000 families and is part of the national program for universal access to energy by 2030.
