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The global LNG market has been undermined just when ExxonMobil was expected to reach a final investment decision on its 15.2m t/yr Rovuma LNG scheme – the biggest of three projects aiming to channel at least $50bn of foreign investment (and possibly much more) into Mozambique over the next decade.The gas boom was expected to drive spectacular levels of economic growth, but while Mozambican economic planners and their allies contemplate the LNG project’s start-up being delayed possibly until 2030, the government is confronted with a burgeoning Islamist insurgency and huge economic pressures.

Mozambique’s Energy Fund (Funae) and the Belgian Development Agency (Enabel) are seeking consultants to assist with the development of hybrid solar PV mini-grids. Bids are sought by 15 April for technical, financial, environmental and socio-economic feasibility studies on five potential sites, of which three are located in the coastal area of Zambézia Province (Namanla, Alto Maganha and Idugo) and two in the inland province of Nampula (Muite and Milhana). The mini-grids will supply electricity for domestic and public use, as well as for irrigation systems and small-scale industry.

KfW’s Global Energy Transfer Feed-in Tariff (Get FiT) programme is scheduled to get under way in Mozambique in Q3, according to the Lusophone Renewable Energy Association. A seminar will take place in Q1 to present the power purchase, concession and interconnection agreements used for the programme. Feasibility studies, design and approval processes have been completed. Get FiT was first implemented in Uganda in 2013-14, where the programme has brought online more than 150MW from solar and wind projects.

The Belgian development agency Enabel has launched a tender for a consultant to carry out technical and financial studies for three hybrid mini-grid sites in Zambézia province and two in Nampula. In Zambézia, the sites are the village of Alto Maganha, which has around 800 households; Namanla, which has around 1,191 households; and Idugo Island, with 2,659 households.

Electricidade de Moçambique (EdM) is seeking a consultant to strengthen its environmental and social capability for a project to build a 560km, 400kV line connecting the 400MW Temane gas power plant being developed by EdM, Globeleq, eleQtra and Sasol New Energy Holdings Ltd.

France’s Neoen announced on 19 December that it had reached financial close on its 41MWp Metoro solar PV project. Portugal’s Efacec has started to build the plant, which will be the second utility-scale solar project supplying Mozambique’s northern grid when it begins operating this year. Scatec Solar’s 40MWp Mocuba solar PV plant started operating in late July 2019.

The African Development Bank (AfDB) board on 26 November approved a long-term senior loan of $400m to support the Total-led Mozambique LNG project, which will monetise gas from Offshore Area 1. The AfDB said it was joining a global syndicate of commercial banks, development finance institutions and export credit agencies in providing debt financing for the project, which will have a production capacity of 12.88m t/yr.

The French Development Agency seeks expressions of interest by 11 November for feasibility studies for two 40MWp solar PV projects in Nampula and Niassa provinces. The project sites are being selected and secured by Electricidade de Moçambique (EDM), with technical assistance from the European-funded Project for Promotion of Auctions for Renewable Energies (Proler). Each site is between 120ha and 150ha and the sites are less than 6km from their respective substations.

London Stock Exchange-listed Ncondezi Energy Ltd announced on 23 October that it has signed a subscription agreement and shareholders’ agreement with GridX Africa Development and GridX Africa AssetCo to finance development of a 400kWp off-grid solar plant with a 228kW, 912kWh battery for a hotel in Mozambique. A 165kVA diesel generator will provide back-up power. Commissioning is expected within eight months and the plant will generate around 660MWh/yr.

While the $2bn-plus ‘tuna bonds’ scandal rumbles on in international courts, Mozambique’s reputation has generally been boosted on President Filipe Nyusi’s watch. The authorities have coped relatively effectively with crises like Cyclone Idai and in ending armed conflict with Renamo, while the Rovuma Basin gas developments could transform the economy by the mid-2020s. An impressive upturn in internationally financed solar and other projects underlines Mozambique’s emergence as a hub in the global energy transition, aided by the hard work of committed local officials.

Total on 30 September announced the closing of its acquisition of Anadarko’s 26.5% operated interest in the Mozambique LNG project for a purchase price of $3.9bn. Total agreed with Occidental Petroleum in May to acquire Anadarko’s assets in Mozambique, Algeria, Ghana and South Africa, and signed a sale and purchase agreement on 3 August. Closing operations are continuing for Algeria, Ghana and South Africa, Total said. The French major takes over as operator of the project, which is scheduled to produce 12.9m t/yr from 2024.

The Ministry of Mineral Resources and Energy has appointed a team of advisers to assist with development of the 1.5GW Mphanda Nkuwa hydropower project on the Zambezi River, 60km downstream from the 2,075MW Cahora Bassa dam. The consortium, led by Synergy Consulting and comprising Baker McKenzie, Worley and HRA Advogados, will work with the Mphanda Nkuwa Project Office (GMNK) to update technical studies and select a private sector partner to develop the project in partnership with Electricidade de Moçambique (EDM) and Hidroeléctrica de Cahora Bassa, an official source confirmed to African Energy.

Vitol and Empresa Nacional de Hidrocarbonetos (ENH) on 17 September announced the launch of a joint venture commodity trading company, ENH Energy Trading. The company will initially be owned 51% by ENH and 49% by Vitol, but ENH’s share is expected to increase over time, a joint statement said. It will be based in Singapore to focus on marketing Mozambique’s gas to the growing Asian market.

The World Bank Group (WBG) board on 17 September approved a $57m financing package for the Mozambique-Malawi Regional Interconnector Project, comprising a $42m grant for Mozambique and a $15m loan for Malawi from the International Development Association. The project involves construction of a 218km, 400kV double-circuit transmission line from Matambo substation in Tete Province, Mozambique, to Phombeya substation in Balaka District, Malawi. It will be Malawi’s first significant transmission interconnection and will allow it to trade on the Southern African Power Pool (SAPP).