Mozambique has joined its neighbours in enacting the Off-Grid Energy Access Regulation, a legislative framework that will bring better clarity to all operators in the off-grid energy market.
The Government of Mozambique passed the Regulation for Off-Grid Energy Access by Decree in the Council of Ministers yesterday. This rule is the consequence of the government’s recognition of the sector’s role in catalyzing rural socio-economic development, leveraging private sector investment, and improving the lives of millions of people.
The regulatory framework will provide greater clarity to all actors in the off-grid energy sector. It will also ensure the necessary conditions for the private sector to develop its activities and protect its investments in a diverse set of technologies applicable to the off-grid context, such as solar home systems, mini-grids and improved cooking solutions.
This regulation is the result of the visionary and committed work of the Government of Mozambique, with special reference to all the institutions involved, namely the Ministry of Mineral Resources and Energy (MIREME), the Energy Regulatory Authority (ARENE) and the National Energy Fund (FUNAE).
The BRILHO Programme, funded by the UK Government’s Foreign, Commonwealth and Development Office (FCDO) and implemented by SNV Netherlands Development Organisation, expresses its gratitude for the trust placed through this partnership by the Government of Mozambique. BRILHO is grateful for having been an integral part of the process to develop this new Regulation, from its initial conception to operationalization.
The BRILHO Programme is mandated to catalyse energy access through solar home systems, green mini-grids and improved cooking solutions to benefit 1.5 million Mozambicans and 15,000 small businesses until 2024.
The approval of this regulation represents a big step for the sector and is reflected in several positive reactions, demonstrating high expectations from the different key stakeholders in the sector.
António Osvaldo Saíde, FUNAE’s CEO, said: “The regulation for off-grid energy is the leverage for the entry of strategic partners, the private sector, as it clarifies the rules of the game in the development of this unequivocal path for the achievement of universal access in 2030.”
Saíde went on to explain that the government’s vision and actions to create an enabling environment for the private sector investments demonstrates its commitment to transformation and social inclusion which consequently promotes economic inclusion in remote areas.
Private Sector Development Adviser at BHC Maputo, Sergio Dista, commented: “Our financial and technical support to the Government of Mozambique through BRILHO programme forms part of the UK Energy Africa campaign. The approval of this regulation is one step ahead to accelerate the expansion of off-grid energy markets in Mozambique and it will help to achieve universal energy access by 2030″.
According to the president of the Africa Minigrid Developers Association (AMDA) and CEO of RVE.SOL, Vivian Vendeirinho,”The new regulation allows for Decentralized Renewable Energy providers to build mini-grid systems that will provide reliable, sustainable and affordable electricity to underserved rural communities in Mozambique. This will anchor their socio-economic development opportunities, so they are not left behind as the economy of the country evolves and grows. The result will be the empowerment of rural communities, more jobs and trading opportunities for Mozambique”.
Team Leader of the BRILHO Programme and Energy Sector Leader for SNV Mozambique, Javier Ayala commented: “This represents a major achievement for the off-grid sector in Mozambique. It will contribute to accelerating and increasing access to energy through solar home systems and green mini-grids for electrification, and clean cooking solutions, benefiting households and businesses with a greener, more inclusive and sustainable economy. The required regulatory conditions are now provided for the businesses to initiate and scale up their operations in Mozambique’s off-grid energy market; the BRILHO Programme is ready and available to provide the financial and technical support for their implementation”.
The Decree will be accompanied by specific regulations that will provide Mozambique with a complete regulatory framework, which will act as an anchor for the growth and sustainable development of the off-grid energy sector.