[{"bbox": [97, 154, 1134, 381], "category": "Text", "text": "Electricity from the newly installed capacity since 2015 has been much more expensive (between 3 and 5 times more) than electricity generated by HCB and more carbon-intensive as well. In this context, there has been an increase in EDM's energy purchase costs, but also in CO2 emissions. The increase in electricity supply costs was aggravated by the increase in the cost of capital and the depreciation of the Mozambican currency against the US dollar, and naturally led to an increase in energy tariffs between 2014 and 2019. However, these tariff increases were insufficient to contain the overall deficit, which increased during the same period. Alongside with trying to get more electricity from HCB for the country, building new generation facilities directly managed by EDM is also part of the solution that this Action offers to reduce the deficit of EDM."}, {"bbox": [97, 399, 1134, 541], "category": "Text", "text": "Poverty disproportionately affects the northern provinces of Mozambique, particularly Cabo Delgado, which faces a multifaceted crisis encompassing humanitarian, development, and conflict factors. The rehabilitation of the grid in Cabo Delgado is crucial for restoring electricity access to the region and supporting its economic recovery. This may involve repairing damaged infrastructure, upgrading existing facilities, and implementing measures to enhance resilience against future disruptions."}, {"bbox": [97, 558, 1134, 786], "category": "Text", "text": "Recognizing the limitations of the conventional grid expansion in reaching all communities and building on the momentum created by the new Regulation for Energy Access in Off-grid Areas, there is also a need to support off-grid solutions provided by the private sector. Despite advances in the policy framework for clean energy in the last couple of years, regulatory gaps still exist in both on- and off-grid market segments like the lack of fiscal incentives, high import duties and VAT for clean energy products. The need for a long-term vision, planning, coordination, and strengthening of data generation and management are also high on the agendas of both the Ministry of Energy and the Regulator. This Action will support the creation of an enabling regulatory environment to encourage private sector participation in the off-grid energy market."}, {"bbox": [97, 804, 1134, 1000], "category": "Text", "text": "The premature ending of grant support for companies operating in remote areas impedes their sustainability and results in setbacks. Without grants, companies struggle to expand or maintain operations, leading to reduced sales, staff cuts, and financial losses. This would lead to higher sale prices, which could exacerbate the challenge for customers to afford electricity, thereby deterring investment in remote regions where vulnerable communities are situated. Sustaining grant programmes for at least five years is crucial to ensure the long-term viability of these projects. At the same time the Action will work on an exit strategy of RBF subsidy to more commercial business models."}, {"bbox": [97, 1021, 1134, 1131], "category": "Text", "text": "This Action will provide incentives for companies to invest in off-grid technologies like solar home systems, mini-grids, portable solar devices, or clean cooking solutions. It will support local and international entrepreneurs and businesses, including through the facilitation of access to finance, in developing and deploying off-grid solutions tailored to the needs of Mozambican communities."}, {"bbox": [97, 1153, 1072, 1206], "category": "Section-header", "text": "**Identification of main stakeholders (duty bearers and right holders) and corresponding institutional and/or organisational issues (mandates, potential roles, and capacities) to be covered by the action:**"}, {"bbox": [97, 1232, 1134, 1374], "category": "Text", "text": "In July 2022, Mozambique updated its Electricity Law with Law No. 12/2022, effective from October of the same year. This revision reflects the country's evolving social, technical, and financial landscape, with a focus on renewable energy and private sector involvement. The Law outlines the framework of the electricity sector, covering production, distribution, transmission, consumption, storage, export/import, and introduces the National Electric System Manager (NESM)."}, {"bbox": [97, 1392, 1134, 1591], "category": "Text", "text": "**Duty bearers:** EDM (Electricidade de Moçambique) is the state-owned vertically integrated electricity company responsible for generating, transmitting, distributing and commercialising electricity in Mozambique. EDM operates a diverse portfolio of power generation facilities, including from hydroelectric (5 HPPs), thermal (2 gas thermal power plants), and renewable energy sources, as well as a network of transmission and distribution infrastructure. EDM is also responsible for importation and exportation. In 2022, Mozambique exported 27% of its production to five neighbouring countries, and in the future, the country aims to position itself as the energy hub in the SADC region."}, {"bbox": [1038, 1682, 1144, 1706], "category": "Page-footer", "text": "Page 8 of 33"}]