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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.

The chances of long-awaited LNG schemes moving ahead have been bolstered by Rwanda’s expanded commitment to battling the northern Cabo Delgado province’s enduring Islamist insurgency on behalf of the Maputo government, a move very much in the interests of the international majors planning multi-billion dollar projects. Many other problems remain to be resolved as Mozambique prepares for President Nyusi to stand down in October – in an election where the ruling Frelimo party’s candidate will be Daniel Chapo, whose outsider status points to further splits in the ruling elite.

Abu Dhabi National Oil Company’s decision to pay Portugal’s Galp some $1.15bn for a 10% stake in offshore Area 4 offers further evidence of Mozambique’s LNG improving prospects, even though the Cabo Delgado insurgency hasn’t gone away.

Another boost for Mozambique’s upstream industry was announced on 24 May, when state-owned giant China National Offshore Oil Corporation (CNOOC) signed exploration and production (E&P) contracts with ENH for five offshore blocks.

Ener-G-Africa has officially launched a biomass stove and cookware factory in Paarl, near Cape Town, giving impetus to efforts to promote green cooking in Africa.

A major source of natural gas for South Africa could be constrained as soon as 2025, with declining reserves at Mozambique’s Pande and Temane fields potentially leading to supply shortages. South Africa will need to secure new sources of feedstock if it is to develop the gas-to-power projects that many see as essential to provide baseload for the renewable energy sector that African Energy Live Data shows is gaining momentum.

The recent approval of plans to set up a Mozambique Sovereign Fund (Fundo Soberano de Moçambique or FSM) by President Filipe Nyusi’s cabinet adds to the growing number of sovereign wealth funds (SWFs) across the continent. The move has been lauded by the International Monetary Fund’s Public Financial Management Blog, which examined the fund's structure and role.

Slow progress at some of sub-Saharan Africa’s most high-profile LNG developments come as exporters from other parts of the world race to sign new long-term deals with buyers from Asia and Europe. The risk for African producers is that they could miss out on lucrative opportunities, costing governments large amounts in lost foreign earnings, writes Marc Howard*.

CFM’s appointment to manage the Southern African Power Pool ’s $1.3bn Regional Transmission Infrastructure Financing Facility could free up a decades-long blockage in the development of cross-border transmission infrastructure. How quickly this happens depends on the success of fundraising efforts in the coming months, and the willingness of utilities and finance ministries to make the RTIFF scheme work.

Commercial operations for the $127m Mozambique-Malawi (Moma) transmission interconnection project has been delayed, a source with knowledge of the project told African Energy. The delay to the Moma link into the Southern Africa Power Pool comes after a previous hold-up from demining complications, while other milestones remain to be met for the long-awaited regional interconnection scheme.

Construction is expected to restart in mid-2024 at Mozambique LNG, with a revived financing package expected to be put in place after nearly three years of force majeure, and as the adjacent Rovuma LNG project is also resuming work.

A Franco-Japanese consortium of TotalEnergies, EDF and Sumitomo Corporation has signed joint development and framework agreements for Mozambique’s long-delayed 1.5GW Mphanda Nkuwa hydroelectric power plant.

Casablanca-based infrastructure financier Africa50 has signed a memorandum of understanding (MoU) with state power company Electricidade de Moçambique (EDM) to develop three solar photovoltaic plants and a series of transmission projects. Africa50 said it planned to develop the projects under the $4.5bn ($236m) Africa Green Investment (AGI) initiative announced on 11 December at the COP28 climate change summit in Dubai.

UAE-based players have used COP28 to commit – and recommit – to projects that could supply over 12GW of renewables capacity across Africa. Emiratis argue this displays a willingness to push projects forward and shoulder risk, while others have failed to deliver – and if critics complain they are also prominent in the oil lobby, Abu Dhabi can counter that the UAE has assumed a leading role in enabling Africa’s energy transition.