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The latest financial results from international oil companies revealed that 2024 was a tough year for many of them, not least because of reduced refining margins. Many of the pressures are likely to continue in 2025, although there is plenty of exploration activity to keep most of them busy, writes James Gavin.

The Hidroeléctrica de Cahora Bassa reservoir is just 20% full, after a prolonged drought. Low water levels threaten to further reduce generation output at the 2.1GW hydroelectric plant, which supplies over 1GW to neighbouring South Africa and additional output to other Southern African Power Pool (Sapp) countries including Zimbabwe and, soon, Malawi.

Longstanding Azura chief executive Alan Muir has stepped down, replaced by former chief commercial officer Dave Peacock, as the pan-African IPP looks to “broaden its horizons” by embarking on its first renewable and storage developments.

The ruling Frente de Libertação de Moçambique (Frelimo) party and its candidate, Daniel Chapo, have been officially declared the landslide winners of Mozambique’s presidential and legislative polls by the Comissão Nacional de Eleições (CNE – National Elections Commission), after hotly contested and violent elections were held on 9 October. An already discredited electoral process was further undermined by the assassination of two opposition figures prior to the results being declared by the CNE. A volatile situation is adding to investor jitters that could make financing Mozambique’s long-stalled plans to become a significant LNG exporter much more difficult, while more political turbulence beckons.

Pretoria needs to find quick solutions to obviate a gas crisis before 2026. Large gas users say that apart from active engagements and some preliminary proposals, no practical and implementable strategies have so far been offered, muddling the future of the gas industry. Complementing public and private sector measures is seen as key to addressing the problem, writes Tonderayi Mukeredzi.

The contract award – along with a second, concurrent Feed deal awarded to another player – paves the way for progress at the onshore LNG megaproject, with a final investment decision now pencilled in for 2026. It has been confirmed that the project will proceed on a modular basis, with the liquefaction process powered by electricity, implying a significant power generation requirement.   There are signs that work will also formally resume on the nearby, 15.2m t/yr TotalEnergies-operated Mozambique LNG (MLNG) project later this year.

A small number of floating solar plants are already operating across Africa and over a dozen more are being planned. Advocates say the technology can not only generate power, but also expand the generation capacity of underperforming hydroelectric power reservoirs. As dams age and water becomes scarce, development finance institutions could a play critical role in funding the growth of a still-nascent technology, writes Tonderayi Mukeredzi.

Utility EDM is in advanced discussions with floating power plant provider Karpower for a new “up to 500MW” powership and floating regasification unit that would supply both domestic and regional Southern African Power Pool offtakers. The prospective development fits into EDM’s LNG-to-power plans, but questions remain over when feedstock from Mozambique’s onshore LNG megaprojects would be available, writes Marc Howard

The UK/Norway-owned IPP Globeleq has raised $99m of debt financing for Mozambique’s first wind project, adding to its southern African portfolio. Despite industry pessimism over the prospects for utility-scale projects, Globeleq is advancing a large pipeline of greenfield renewable and gas capacity in eastern and southern Africa and is bullish over the future of utility-scale projects, writes Marc Howard.

Mozambican regulator Autoridade Reguladora de Energia (Arene) has issued a request for proposals (RfP) for independent power producers (IPPs) to develop and install solar PV and battery energy storage systems (Bess) through the country’s Global Energy Transfer Feed-in Tariff (Get FiT) programme.

Maputo’s goal to become a regional power exporter continues to take shape, with investors committed to a substantial pipeline of renewable and gas-fired plants. Utility EDM is also promoting expansion of national and international interconnections, while progress is reported on the strategic 1.5GW Mphanda Nkuwa hydroelectric project, writes Marc Howard.

Another series of delays have postponed the commissioning of the Mozambique-Malawi Regional Interconnector Project (Moma), the World Bank Group (WBG) has confirmed. The 218km, 400kV line will connect Malawi’s isolated grid to the Southern African Power Pool (Sapp) and add a badly-needed source of electrons to its grid – with a 50MW allocation expected from state-owned independent power producer (IPP) Hidroeléctrica de Cahora Bassa.

Faced by a severe drought which has seen water levels fall dramatically at its hydroelectric power plants, Zambia is hoping to revive abandoned private sector-led power projects and speed up work on an interconnector with Tanzania.

Tenders for solar power with energy storage and mini-grids under the Global Energy Transfer Feed-in Tariff programme are expected to start soon, after two years of planning.

State utility EDM has signed a deal with the UK’s Gridworks to develop Mozambique’s first independent power transmission project to connect the central and northern regions without inflating sovereign borrowing.