In Mozambique, only a third of the population has access to electricity and only 4% is using clean cooking energy. In rural areas, access rates are even lower. EnDev Mozambique supports households in gaining access to the national grid, helps to bring quality photovoltaic products to the markets and strengthens the dissemination of improved cookstoves. It champions innovative results-based approaches that also provide gender incentives, thereby enhancing the development of self-sustaining markets. Also, EnDev supports the government in creating a national monitoring platform for energy access.
Technologies used in this project
- People with access to electricity: 281,500*
- People with access to modern cooking energy: 97,600*
- SMEs with access to modern energy services: 43*
- SIs with access to modern energy services: 7*
- *Target achievements until December 2020
Poor households in peri-urban areas located close to existing low-voltage power lines are supported to gain access to the national grid. EnDev Mozambique works through agreements with Electricidade de Mocambique (EdM) on grid densification in selected areas. In a second step, EdM subcontracts local companies to connect a certain number of preselected new customers. EnDev offers a one-time subsidy to cover partly the connection costs of poor households, while at the same time creating awareness, supporting credit-based payment schemes and fostering energy efficiency with the use of efficient light bulbs.
In the field of small solar products (picoPV) and solar home systems (SHS) the project works closely with the private sector along the entire value chain. Technical and business training is offered to importers, wholesalers and retailers of solar products, while networking and business relationships are facilitated between them. One focus is to unlock import capacity to bring a wider range of quality products to the markets. At the same time, efforts are being made to support new distribution channels reaching out into rural areas with new partners, where EnDev´s role is to assist the private sector with overcoming initial market entry barriers and developing last-mile distribution channels.
EnDev Mozambique supports the implementation of the national Biomass Energy Strategy (BEST) to reduce transaction costs and achieve economies of scale. The emerging markets for improved cookstoves (ICS) are strengthened following a fully commercial approach supporting local companies.
Fund for Sustainable Access to Renewable Energy (FASER)
A Results-based Financing (RBF) fund is a private sector support mechanism that rewards companies for achieving specific pre-defined results. In Mozambique, the EnDev programme partnered with Foundation for Community Development (FDC) and set up the FASER RBF (Fund for Sustainable Access to Renewable Energy) with the objective to accelerate energy access especially in remote areas, among woman-led households, productive users and vulnerable populations that have been hit by natural catastrophes or by the effects of Covid-19. Through dedicated financing windows, the fund provides financing to companies who venture into weaker market segments and achieve tangible results.
FASER is a basket fund, open for other donors to support any of the windows. For instance, in 2020 both NORAD and the EU provided significant funds to support the COVID-PAY (Norad 2.5 million Euro) and CovidPlus (EU 5.5 million Euro) mechanisms established under FASER.
For more information on the energy situation in Mozambique see energypedia.