South32 Faces Higher Mozal Costs Amid Mozambique Power Crisis
The facility makes a significant contribution to Mozambique''s economy—representing 7-9% of GDP according to IMF estimates—but faces uncertainty
We found that 95% of Mozambique's small businesses rely on electricity, mostly from the national grid, to produce the goods they sell. They use electricity productively to generate sustainable livelihoods and create jobs. Yet 86% of the small enterprises we interviewed said they had an unreliable supply of electricity.
The optimal power system expansion plan if wind and solar capacity are allowed to triple to reach almost 3 GW by 2032. Currently, the power system of Mozambique is separated into two transmission networks isolated from one another: the Central-Northern and Southern systems. Over 50% of the annual power demand is seen in the Southern system.
Despite this huge generation potential only 38.6%1) of its population had access to electricity in 2021. The total installed power capacity in Mozambique stood at around 2,800 MW in the year 2021 whereas the peak demand reported by the state-owned energy utility Electricidade de Moçambique (EDM) was at 1,035 MW.
The country's biggest power plant, Cahora Bassa hydro plant, has an installed capacity of 2,075 MW. Currently, over 75% of the electricity generated from the hydropower plant is exported to South Africa. The remaining capacity, around 1,300 MW, is utilised to meet local electricity demand in Mozambique.
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