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Scoping Study on Renewable Energy in Mozambique Final Consultancy Report This report provides a “current and relevant overview of the Renewable Energy Sector in Mozambique” for the Netherlands Development Organization (SNV), to justify its positioning during 2011 and 2015. Fatima Arthur, Osvaldo Soliano, Virginia Mariezcurrena 11/7/2011

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Page 1: Scoping Study on Renewable Energy in Mozambiquevascoequipmentmoz.webs.com/documents/SNV FinalReport-eng.pdfScoping Study on Renewable Energy in Mozambique The Netherlands Development

Scoping Study on

Renewable Energy in

Mozambique Final Consultancy Report This report provides a “current and relevant overview of the Renewable Energy Sector in Mozambique” for the Netherlands Development Organization (SNV), to justify its positioning during 2011 and 2015.

Fatima Arthur, Osvaldo Soliano, Virginia Mariezcurrena

11/7/2011

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Scoping Study on Renewable Energy in Mozambique The Netherlands Development Organization (SNV)

Final Report, Maputo, July 11, 2011

Contents

1. Characterization of sector and country ......................................................................................... 1

1.1 Overview of Mozambique and its insertion in SADC .................................................................... 1

1.2 Overview of the regional and the Mozambican energy sectors ................................................... 2

1.3 Overview of the current possibilities and barriers of renewable energy sources as vehicles for

development and poverty alleviation in Southern Africa .................................................................. 5

2. Assessment of technology and determining factors .................................................................... 9

2.1 Assessment of the role, possibilities and barriers that renewable energy sources can have in

Mozambique, for rural development and poverty alleviation ........................................................... 9

2.2 Assessment of determining factors and pathways to promote the expansion of renewable

sources as vehicles of development and poverty alleviation ........................................................... 14

2.3 Assessment of existing legal and institutional framework of the Mozambican power sector and

the niche of renewable energy ......................................................................................................... 17

3. Identification of opportunities for intervention ......................................................................... 21

3.1 On-going projects with a RE component or opportunity for intervention and their

categorization by relevant criteria .................................................................................................... 21

3.2 Resource mobilization for SNV interventions ............................................................................. 22

4. Specific recommendations........................................................................................................... 25

4.1 SNV interventions: capacity building & institutional development ........................................... 25

4.2 SNV interventions: value chains, knowledge brokering, local development, inclusive businesses

and emerging farmers ...................................................................................................................... 28

4.3 Recommendations on SNV intervention in the renewable energy sector for years 2011-2015 32

REFERENCESi

APPENDICES

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Scoping Study on Renewable Energy in Mozambique The Netherlands Development Organization (SNV)

Final Report, Maputo, July 11, 2011

Tables

TABLE 1 - THE MINIMUM LIVING STANDARDS FOR POOR HOUSEHOLDS [13] ............................................................................ 6

TABLE 2 – SEVERAL RENEWABLE ENERGY APPLICATIONS FOR DOMESTIC USE AND MICRO ENTERPRISES .......................................... 7

TABLE 3 – FACTORS AND PATHWAYS TO PROMOTE RE IN A MULTIFACETED COMMUNITY APPROACH .......................................... 15

TABLE 4 - LINKS IN THE S&D BIOMASS CHAINS ................................................................................................................ 30

TABLE 5 - LINKS IN THE S&D SOLAR CHAINS .................................................................................................................... 31

TABLE 6 – RECOMMENDED INTERVENTIONS FOR SNV IN THE RE SECTOR .............................................................................. 32

Figures

FIGURE 1 - MOZAMBIQUE ............................................................................................................................................. 1

FIGURE 2 – SOUTHERN AFRICAN POWER POOL ................................................................................................................. 3

FIGURE 3 - EVOLUTION OF TRANSMISSION GRID 1975-2005 (SOURCE: A. SOUSA, EDM) ........................................................ 4

FIGURE 4 – RENEWABLE ENERGY POTENTIAL IN AFRICA ....................................................................................................... 9

FIGURE 5 – SUPPLY & DEMAND (S&D) CHAIN FOR CHARCOAL ........................................................................................... 30

FIGURE 6 - SUPPLY & DEMAND (S&D) CHAIN FOR SOLAR ENERGY ....................................................................................... 31

FIGURE 7 – IMPACT OF INTERVENTION FOR SNV X SPEED OF INTERVENTION ......................................................................... 33

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Scoping Study on Renewable Energy in Mozambique The Netherlands Development Organization (SNV)

Final Report, Maputo, July 11, 2011

Acronyms

Acronym Description

BoP Base of the Pyramid (the poorest people)

CB Capacity building

CB&ID Capacity Building and Institutional Development

CDS Capacity Development Services

CNELEC Conselho Nacional de Electricidade (National Council for Electricity)

CTA Confederação das Associações Económicas de Mozambique

DNA Direcção Nacional de Água (National Authority for Water)

DNER Direcção Nacional de Energias (Novas e) Renováveis (National Directorate for New and Renewable Energy)

EDENR Estratégia de Desenvolvimento de Energias Novas e Renováveis

EDM Electricidade de Moçambique (Public Company of Electricity of Mozambique)

EF Emerging Farmers

ESA Eastern and Southern Africa (SNV-s region where Mozambique belongs)

ETH Ethiopia

FUNAE Fundo Nacional de Energia (National Energy Fund)

GHG Greenhouse Gases

GIZ German International Cooperation – Deutsche Gesellschaft fur Internationale Zusammenarbeit

IB Inclusive Business

ICS Improved Cooking Stoves

IFC International Finance Corporation

INAM National Meteorological Authority

KB Knowledge Brokering

KE Kenya

LCB Local Capacity Builders: national organizations that build capacity in others, implementing SNV's programs

LCD Local Community Development

MOZ Mozambique

MSP Multi Stakeholders Processes

MSSD Multi Stakeholders Sector Development

O&M Operation and Maintenance

PEC or PECs Plano Energético Comunitário / Community Energy Plan

PRM PRM: Partnerships and Resources Mobilization (partnerships where SNV's services are paid by the partner)

PS Private sector

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Scoping Study on Renewable Energy in Mozambique The Netherlands Development Organization (SNV)

Final Report, Maputo, July 11, 2011

Acronym Description

PT Partnership

PV Photovoltaic

QW Quick Win

RE Renewable Energy

RET or RETs Renewable Energy Technology(s)

RMT Regional Management Team

RW Rwanda

S&D Supply and Demand

SADC Southern Africa Development Cooperation

ST Strategic Intervention

SWH or SWHs Solar Water Heaters

TZ Tanzania

UG Uganda

VC Value Chain

VCA Value Chain Analysis

VCA&D Value Chain Analysis and Development

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Scoping Study on Renewable Energy in Mozambique The Netherlands Development Organization (SNV)

Final Report, Maputo, July 11, 2011 1

1. Characterization of sector and country1. Characterization of sector and country1. Characterization of sector and country1. Characterization of sector and country

1.1 Overview of Mozambique and its insertion in SADC

Mozambique is a country in the Southern Eastern side of Africa

(Figure 1), situated between 10o27’-26o56’ latitude South and

30o12’-40o51’ longitude East. With a total of 799,380 sqkm,

Mozambique has an estimated population of only 22.4 million

people, in 2010, with densities varying between 12 (Niassa) to

175 (Gaza) inhabitants per sqkm; Maputo city has a density of

3,206 inhabitants per sqkm [1].

Mozambique has a warm tropical climate, with two main

seasons: the warm and wet season, lasting between October and

March, and the cold dry season, lasting between April and

September. The yearly average temperature is of 23-26 oC in the

coastal areas and rainfall averages 1.2 m per year [2]. The

southern area of Mozambique is the driest; other parts have a

rainfall of at least 800 mm per year. Mozambique is about a quarter forested (24.4% in 20071) and

has very little irrigated land (2.6% in 2003), although 29.2% of the GDP (in 2009) was originated in

the agriculture sector.

Mozambique’s per capita GDP growth was 3.9% in 2009. However, it is still ranked 165th country in

HDI 2010 [3]. The low agricultural productivity, the impact of raised fuel prices and the incidence of

HIV/AIDS (12.5% of the age group 15-24 years, in 20072) contribute for the continuation of high

poverty [4] - the poverty headcount ratio measured 54.7% in 2008/9, almost 13 points down from

levels in 1996/7, and 0.6 points up since 2002/3 due to a slight increase of poverty in the rural areas

[5]. The discrepancy verified between positive GDP growth rates and the high poverty may result

from the capital intensive “mega projects”, which have little impact in the population livelihoods and

thus do not contribute directly to poverty reduction [6].

The armed fight against colonialism, officially launched in 1962, culminated with the constitution of

an independent Republic of Mozambique in 1975. The political support of Tanzania and Zambia was

crucial to the success of the armed struggle and the decolonization process in Mozambique, and the

bonds created by the governments of these countries lead to the creation of the SADCC.3

“Originally known as the Southern African Development Co-ordination Conference (SADCC), the

organisation was formed in Lusaka, Zambia on 1 April 1980, following the adoption of the Lusaka

Declaration. (…) establishing the Southern African Development Community (SADC) (…).”4

Mozambique is one of the founding members of SADCC/SADC and because of its history and its

strategic geographic location, an active member in the community, and signatory of all 24 protocols

so far established between member-countries. Human and economic development in Mozambique,

1 Source: http://www.ruralpovertyportal.org/web/guest/country/statistics/tags/mozambique 2 Source: http://mdgs.un.org/unsd/mdg/Data.aspx

3 Source: http://www.sadc.int/#

4 Source: http://www.dfa.gov.za/foreign/Multilateral/africa/sadc.htm

Figure 1 - Mozambique

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Scoping Study on Renewable Energy in Mozambique The Netherlands Development Organization (SNV)

Final Report, Maputo, July 11, 2011 2

and of other countries in Southern Africa, will only be achieved by integration of regional efforts and

cooperation, by a “common future” as expressed in SADC’s Vision and Mission statements.

1.2 Overview of the regional and the Mozambican energy sectors

The Southern African energy sector

SADC has at the moment 14 member states and an estimated population of 808.8 million people in

2010, of which only 37% are urban. SADC population is quite young (18.5 years of age on average in

2010) and expected to grow at an average rate of 2.4% per year between 2010-2015 [3].

Human Development in SADC varies between Mauritius (ranked 72 as high developed) to

Mozambique, DRC and Zimbabwe, the lowest in the ranks at respectively 165, 168 and 169

positions. In general, the conditions of the populations in SADC are improving, as the growing HDI

shows; Mozambique’s growth was more pronounced in the decade 1995-2005, and follows the

regional trend consistently below by about 0.1, in the past 30 years (Graph 1).

In several development variables Mozambique is

well behind the SADC average: for example,

Mozambique has a literacy rate of only 54%

(against 62.4% in the region) and a GDP per capita

of $440 (PPP 2008) only, while in the region it

reaches $1233 per capita (PPP 2008). The growth

of GDP has been slightly smaller (2.2% per

annum) than the regional growth (2.7% per

annum). Finally, in Mozambique, mobile phone

network coverage amounts to only 44% of the

population, while in South Africa and Zimbabwe

reaches respectively 100% and 75% [3]. Also,

while in Mozambique there are only 1.6 internet users per 100 people; South Africa and Zimbabwe

reach respectively 8.6 and 11.4 users per 100 people [3].

Recognizing that the access to modern energy services is essential to sustainable human

development of the region, the Southern Africa Development Community declared that “increasing

access to such „superior‟ forms of energy on a reliable basis is a basic requirement both for

sustaining the national level of economic development, for reducing poverty and allowing people to

improve their standard of living” [7].

The Southern Africa Power Pool (SAPP, Figure 2), was created in 1995 to facilitate trading between

national electricity utilities and the pooling of regional resources in developing the electricity sector.

Key to the SAPP success are the joint development of hydroelectric generation projects, electric

transmission interconnections and the establishment of the short term and long term trading

agreements between members [8].

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

1980 1990 1995 2000 2005 2009 2010

HDI between 1980 and 2010

SADC

Mozambique

Graph 1 - Evolution of Human Development Index [1]

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Final Report, Maputo, July 11, 2011 3

Significant investments and progress have been made in

the regional cooperation for the optimization of

electricity supply; however, these improvements have

had small impacts in the supply of domestic energy and

limited contributions to poverty alleviation and

household development. The electricity consumption in

Africa has increased by 208% between 1980 and 2008,

but Southern Africa was behind the continent, with a

growth of only 125% in this period (Graph 2) [9]. The

consumption of electricity in Southern Africa, between

years 1995 and 2005, has increased by 3.4% per annum

[10], however access rates in some member countries is

still small (Graph 3)[11].

In 1995, southern African countries were

consuming biomass to supply 86% of their

total primary energy [12]. However, in 2008

these same countries were still using

traditional biomass as 70% of their primary

energy demand [13].

The concept of “energy access may be

disaggregated into (…) availability,

affordability and acceptability”, whose

interactions determine the household’s

specific choice of energy sources and theirs

relative weight in the total energy

consumption [7].

Although the desirability of universal access to

electricity, an ultimate goal of energy sectors’

development, is unquestionable, SADC

countries agreed that immediate development

can happen with a portfolio of least cost

energy solutions, and encouraged individual

members to incorporate this concept in the

national energy and development policies. As

such, the following strategic approaches were suggested for SADC members: a) low income (poor)

rural and urban households, should benefit from the modernization of traditional energy sources

and end-uses; b) middle income rural households, should be supported to transition towards

modern sources and end-uses; and finally, c) middle urban and upper income rural/urban, should

benefit from programs targeting efficiency and environmental conservation [7].

The distinction on strategies for energy access may result in distinct technologies and energy

solutions for the different categories of households. Although this categorization seems sensible, it

assumes clarity in the distinction between rural and urban areas, which is not always the case and it

Figure 2 – Southern African Power Pool

Graph 3 – Population % with access to Electricity

15

38.5

5.8

11

15

7

93.6

6.3

34

70

11

19

34

0 10 20 30 40 50 60 70 80 90 100

Angola

Botswana

Congo, Dem Rep

Lesotho

Madagascar

Malawi

Mauritius

Mozambique

Namibia

South Africa

Tanzania

Zambia

Zimbabwe

Electricity Access (%) in 2005

Graph 2 – Electricity in Africa (source: EIA)

0

100

200

300

400

500

600

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Total Electricity Net Consumption (Billion KWh)

SADC

Africa

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Scoping Study on Renewable Energy in Mozambique The Netherlands Development Organization (SNV)

Final Report, Maputo, July 11, 2011 4

certainly is not static – rural areas in Africa are in a process of urbanization, while urban areas retain

characteristics and links of rural areas. Consequently, although the above categorization may

provide guidelines on what type of technologies and energy solutions are more likely to be

successful in pursuing domestic energy development, the design and implementation of (energy)

development programs should be flexible and allow initiative and innovation from implementers

and users.

The Mozambican energy sector and its role in development

By 1970 most of the Mozambican population lived in rural areas - only 9% urban in 1970 [14],

dependent on the use of wood fuels. Currently, urbanization is estimated at a rate of 31% of the

population and growing - projections from Census 2007 [1] - and electricity use still retains its urban

linkage [15]. The Mozambican government established that a regular and reliable supply of

electricity to the whole country was a priority for the development of a fair society and in August

1977 created Electricidade de Moçambique (EDM) as a national (state) utility with exclusive rights to

operate and expand existing infrastructure of electrical generation, transmission and distribution,

and to supply electricity to consumers at the national level [16].

Since its creation, EDM has built more than 3000 km of 66 kV lines and above [17], rehabilitated,

upgraded and expanded distribution systems (Figure 3). Demand for electrical power has grown

from a mere 200 MWh/year in 1960 to 3193 GWh/year (481 MW peak) in 2009, bringing the

hydropower from Cahora Bassa to all provincial capitals. Over the years, existing diesel and coal

generators in the major urban areas were progressively shut down, and only hydro generation,

mainly from HCB’s share for EDM5, remains today as EDM’s source of power.

Figure 3 - Evolution of Transmission Grid 1975-2005 (source: A. Sousa, EDM)

The expansion of electrical grids supports future economic and social development [18] and

although the law allows for private participation in the sector, EDM remains the major agent of

electrification. However, despite major investments, the electrification rate had only reached 14.3%

in 2009 and residential energy still only represented 42% of the overall sales of EDM [19].

National statistics indicate that the main sources of domestic energy in Mozambique are firewood,

charcoal, kerosene, LPG and electricity. In the years 2002/3 it is recorded the following composition

of lighting energy: electricity (6.9%), kerosene/gas (53.8%), firewood (31.7%), candles (2.2%) and

5 Currently EDM is entitled to acquire 300 MW of power from HCB at 16.72 cR/kWh (2.4 c$/kWh), and 100 MW

non-firm at 20.97 cR/kWh (3.0 c$/kWh), 2008 prices. Good management practices allowed EDM to cover peak power with its own hydro stations, and avoid the high costs of importing power from ESKOM-SA.

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Final Report, Maputo, July 11, 2011 5

other sources (4.7%) [20, 21]. On the other hand, domestic cooking uses the following composition

of energy sources, in 2004 in Maputo: firewood only (2.1%), charcoal only (11.7%), kerosene only

(10%), LPG only (3.8%) and electricity only (4.6%) [22]. Most of the households use charcoal for

cooking, alone or in combination with other sources (71.7%).

Diesel and gasoline are primarily used in transport systems [23], animal traction has an incidence of

barely 8% in farming activities - only 2.5% of farmers own and use animal traction in the farms [24]

and renewable sources such as micro-hydro, wind and solar are as yet negligible.

The Energy Strategy of Mozambique [25] sets the vision for the energy sector and guides the

planning for development of relevant institutions. This strategy and the National Policy for New and

Renewable Energy Sources [26], also enforce the role of the private sector participation as key for

the success of the (sub) sector’s development and the benefits of regional cooperation.

1.3 Overview of the current possibilit ies and barriers of renewable energy sources as vehicles for development and poverty alleviation in Southern Africa

The access to modern energy services is essential for the achievement of the Millennium

Development Goals, the reduction of poverty levels and the sustainable development of the poorest

nations in the world [13, 27, 28]. The International Energy Agency (IEA) estimates that about 1.4

billion peoples (20% of the world’s population) were still without access to electricity in 2009; in sub

Saharan Africa, electrification rates only reached 30.3% [12]. Electrification access rates have been

clearly linked with poverty levels [29, 30], and although Southern African countries have heavily

invested in the expansion of the electricity networks many people still remain without access to

electricity.

Several factors have been linked with reduced electricity access and energy poverty, namely the

“capital intensive” nature of electricity supply and use, the institutional quality of providers and

governments, the low urbanization levels and , of course, the income levels at the national and the

household levels [29].

Although Universal Electricity Access is desirable, to achieve it by 2030, it is estimated that sub

Saharan Africa will need an investment of 280 billion USD in the electricity supply infrastructure,

including household connections [31]. This goal may be achieved yet, but it will not happen with

conventional electrification. A combination of electricity supply from the interconnected grid, from

local mini grids and from standalone systems, with the use of local energy resources and non-

conventional technologies, is the best approach to accelerate access to modern services, an “all

hands-on-deck” approach [32].

The urgent need to reduce poverty calls for energy solutions that may be transitional and of short

term benefits – for example, improved charcoal stoves and kerosene lamps instead of the traditional

three-stone firewood stove and candles. Ideally, however, investments in the energy supply

infrastructure should contemplate a future based on a distributed generation mix-sourced electric

grid, multidirectional metering, efficient technologies and innovative market and price structures.

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Final Report, Maputo, July 11, 2011 6

The six main energy uses at the household level are lighting, cooking, space heating, cooling,

information and communication technologies (ICTs) and productive uses [13]. This report discusses

each energy use and proposes the minimum requirements and the technologic options for their

satisfaction in poor areas, summarized in Table 1. The main benefits and contributions of providing

modern energy services to achieving the MDGs are as follows:

- Access to modern lighting will increase the productive time of individuals and family

enterprises;

- Access to modern cooking will reduce the number of deaths due to indoor smoke pollution,

increase the time available for other activities, and reduce impact on deforestation;

- Access to clean space heating has impacts on people’s respiratory and cardiac health;

- Access to modern cooling facilities will allow for food preservation for own consumption and

for sales, contribute to peoples income by increasing the quality (and creating the

opportunity for sales) of marketable produce, and also improves people’s health through the

preservation of medicine and vaccines and the provision of comfort conditions;

- ICTs include radio, TVs, internet, telephone and mobiles. ICTs contribute to education,

information dissemination, political and social empowerment and facilitate participation in

the political and social arenas. Generally ICTs contribute to better provision of public

services and administration;

- Finally, energy access is directly and indirectly linked with income earning capabilities and

poverty reduction by creating new opportunities for income generation and by increasing

the productivity and reducing costs of current domestic and productive activities.

Table 1 - The minimum living standards for poor households [13]

Use Minimum Standard Proposed by Practical Action Appropriate technology

Lighting 300 lm for 4-6 hours per day - Electric lights (75 kWh/year)

Cooking - Annual mean concentrations of particulate

matter (PM2.5) < 10 μg/m3

- Taking less than 30 minutes per household per

day to obtain

- Wood fuel (1 kg/person.day)

- Charcoal (0.3 kg/person.day)

- LPG (0.04 kg/person.day))

- Kerosene or ethanol (0.2 litres

per person.day)

Space Heating 12°C as a minimum daytime temperature - Wall insulation

- Passive heating

- Stove selection

Cooling - Life of perishable products be extended by a

minimum of 50% over that allowed by ambient

storage

- All health facilities to have refrigeration

adequate for the blood, vaccine and medicinal

needs

- Maximum indoor air temperature of 30˚C.

- Mechanical refrigeration (grid

electricity, PV solar and other

supplying electricity)

- Sorption cooling (kerosene,

gas)

- Passive cooling (zeer pot,

cooling chamber)

ICTs - People can communicate electronic information beyond the locality in which they live

Electricity supply (grid, PV solar,

batteries, etc.)

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Final Report, Maputo, July 11, 2011 7

Use Minimum Standard Proposed by Practical Action Appropriate technology

- People can access electronic media relevant to their lives and livelihoods

Productive

Uses

Break the cycle of poverty by providing access to

modern energy efficient services for domestic

needs and local enterprise (irrigation, agro

processing and manufacturing)

Any and all

Energy is an input to better life conditions, and to better and newer opportunities for earning

income and for improving life conditions of poor populations. Energy services can also be, by

themselves, sources of employment and new enterprises among the poor populations. The provision

of modern energy services to the poor is consequently both a need and an opportunity for

accelerated development and poverty alleviation.

Energy services and technologies used by households can be grouped into three forms: 1)

mechanical power, 2) heat and 3) electricity. All energy sources present in nature must be

transformed into one or other form, in various scales and with different prices and efficiencies

levels, in order to be useful for humans. The increasing prices of oil and the threats of climate

change turned the world’s view back to renewable sources and technologies and boosted their

competitiveness and diversity of applications.

Table 2 lists and characterizes the most common applications of renewable energy sources in the

domestic context and estimated unit costs. Firewood is very inefficient in the direct use, and it is the

raw material for producing charcoal. Electricity cannot be harvested directly from nature and it is

generated from other sources (in Mozambique, electricity is mostly hydro-based, although in the

future it may include some non-renewable sources such as coal or natural gas for power, besides

new renewable wind energy). Other renewable sources exist (geothermal, wave, tidal, wood gas,

etc.) however they will not be listed as this work is limited to those technologies using solar, wind,

hydro, mechanical and bioenergy (renewable) resources, whose resource is easily available in the

country or do not require important technological development.

Table 2 – Several renewable energy applications for domestic use and micro enterprises

Technology Application Unit costs

Mechanic power Pumps, mills, saws, etc.

N/A Sewing machines

Small battery chargers

Firewood and Charcoal

Cooking

1 $/kWh (firewood) and 14 c$/kWh (charcoal) in 2002/3 [15]

Water purification

Water heating

Space heating

Solar PV Lighting

40-60 c$/kWh at rated power of 2-5 kW (solar home system) [33]

Water pumping

Refrigeration

Ice making

TV and ICTs

Battery charging

Stand-alone electricity generation 56 c$/kWh at 0.3 kW rated power [34]

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Final Report, Maputo, July 11, 2011 8

Technology Application Unit costs

Solar thermal Cooking stove N/A

Fruit preservation

Desalinization unit

2-20 c$/kWh for 2-5 m2 panel [33] Water purification

Water heating

Solar passive Space cooling and heating

N/A

Lighting

Food refrigeration

Food/crop drying

Wind mechanic Water pumps N/A

Grain mills, etc.

Wind generators Stand-alone or mini-grid electricity generation

35 c$/kWh at 0.3 kW rated power [34]

Hydro mechanic Grain mills, wood saws, etc. N/A

Hydropower Stand-alone or mini-grid electricity generation

15 c$/kWh at 0.3 kW rated power [34] 40 c$/kWh at 0.1-1 kW r. power [33]

Ethanol Cooking 60-80 c$/litre (corn)

Biogas

Lighting

12 c$/kWh at 20 kW biogas (gasifier)

Cooking

Water purification

Water heating

Space heating

Stand-alone electricity generation 7 c$/kWh at 60 kW rated power [34]

Electricity from the national grid in Mozambique

All applications 8 c$/kWh on average in 2009. Social consumers (<= 100 W) can use electricity at 3.9 c$/kWh [35]

Solar energy is the more versatile in the domestic context however its use for cooking is limited. In

turn, charcoal and biogas are very appropriate for cooking, however they cannot meet the standards

for lighting [13]. Mechanical, wind, solar PV and micro-hydropower have similar applications for

economic, income generating, activities [36].

Renewable energy sources in Southern Africa are abundant for biomass, hydropower and wind

resources, as demonstrated in Figure 4. Solar irradiation is high, 4kWh/m2/day on average in SADC

[37], and its harvesting is cheaper than anywhere else [38], making solar energy an excellent choice

for renewable resource development [39]. Still, the use of renewable sources in Southern Africa is

not as widespread as it could [37].

Several factors are identified as limiting RE development in Southern Africa, namely legal, regulatory

and institutional frameworks, funding limitations, lack of expertise and nurturing policies, including

fiscal and pricing mechanisms [37]. On a household level, the increase of use of Renewable Energy

Technologies (RETs) requires an understanding of the resources and the technologies, the

facilitation and access to micro-finance and the development of micro enterprises to design,

manufacture, distribute, install, manage and maintain the applications.

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The framework for regional cooperation on renewable energy exists and it recognizes that biomass

will be for a while an important source for cooking [7]. Other renewable sources have an important

role to play in providing access to modern sources to Southern African households.

Figure 4 – Renewable Energy potential in Africa

2. Assessment of technology and determining factors2. Assessment of technology and determining factors2. Assessment of technology and determining factors2. Assessment of technology and determining factors

2.1 Assessment of the role, possibili t ies and barriers that renewable energy sources can have in Mozambique, for rural development and poverty alleviation

Renewable energy plays already an important role in the Mozambican energy matrix. A substantial

part of its energy demand, around 80%, is supplied by traditional biomass, fuelwood and charcoal,

mostly used for cooking, although some commercial and industrial enterprises (bakeries, tea

factories) also use biomass for heat [22]. Biomass is a renewable source, but it is generally used in a

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very inefficient way and has negative impacts in people’s health, through indoor pollution, and in the

environment, through deforestation. The most affected by indoor pollution are women and children.

This is because exposure is particularly high among women and children, since they are either at

home more frequently or in charge for cooking and heating with biomass on open fires or stoves

without chimneys. 59% of all indoor air pollution-attributable deaths thus fall on females. According

to WHO, “Every year, indoor air pollution leads to Lower Respiratory Infections and is responsible for

the death of one person every 20 seconds. Globally, pneumonia and other acute lower respiratory

infections represent the single most important cause of death in children under five years. Exposure

to indoor air pollution more than doubles the risk of pneumonia and is thus responsible for more

than 900 000 of the 2 million annual deaths from pneumonia.6

On the other hand, although about 90% of the charcoal production is illegal (not licenced), it is

estimated that it employed around 3 million people between 2005 and 2006 [40]. Consequently,

biomass production, trading and use, will be part of the national plans for the renewable energy

sector, through policy (inline to be developed) and through projects on improved cooking stoves and

charcoal kilns, seeking to improve efficiencies and reduce the negative impacts.

The power sector in Mozambique is nearly 100% dependent on hydro, again a renewable resource,

but less than 20% of population has access to the electricity grid. Electrification by EDM identified

the need for an investment of 2 billion USD for the period between 2011-2021, excluding new power

generation; however, this investment will only achieve a coverage of 44% of the population (source:

DEP/EDM). Clearly conventional electrification cannot meet the urgent need for universal access to

modern energy sources, even if the investment capital is available. More recently, government has

claimed that additional 13% of population have access to electricity through mini-grids or stand-

alone renewable energy technologies, funded by FUNAE.

Transport is mostly dependent on imported oil-derivates and about 50% of the population relies on

imported kerosene for lighting [15, 22]. The discovery of substantial deposits of natural gas creates

interesting possibilities for transportation and heat generation, but it will be a while until the sector

is developed and the gas is readily available for domestic use.

Fortunately, the country is endowed by huge renewable energy potentials, appropriate for micro

developments and domestic uses, namely micro hydro, coastal wind, biomass (bagasse, copra,

cashew, maize, forests and others) and huge solar resources - solar radiation is evenly distributed in

the country and estimated to amount to 1.49 million GWh per year [41], i.e. about 23.4 times the

current domestic energy consumption [39].

Solar energy can be used for space and water heating, crop drying, slow cooking and electricity

generation through photovoltaic technology. Photovoltaic (PV) systems are undoubtedly the most

efficient and cost-effective technology to provide lighting to remote areas. Modular solutions,

going from portable lanterns to larger solar home systems (SHS), can provide access to modern

energy services, including media and food refrigeration. Lighting Africa [42] lists potential benefits of

solar energy: on the environment, when solar energy replaces fossil-fuels or biomass energy; on

health, by reducing in-doors emissions and risks of accidents; on household spending, through

savings; on education and on income generating activities, through extended working hours and

6 Fact sheet 292, 2005, World Health Organization, http://www.who.int/mediacentre/factsheets/fs292/en/.

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opportunities for new activities. The large resource available in all Mozambique makes solar energy

the most promising for development, both at the pico/micro and at the small scales.

Among key possibilities to impact rural development and poverty alleviation are also biofuels for

transportation, which is one important labour intense activity in rural areas; biogas from agricultural

and fishing residues and modern biomass for heating, cooling, cooking and lighting, with a key role

to be played by improved stoves, biodigesters and gasifiers; and water pumping based on treadle or

other mechanical power devices, wind and photovoltaic technology. Pico to small hydro can also

play an important role in local productive activities. Agro industries can also push not only the

creation of local activities but also promote rural electrification.

This plethora of alternatives matches the stated objectives of SNV and of the newly approved

Mozambican Renewable Energy Strategy [43]. The former is clearly focused on rural development

and poverty alleviation with strong interest in providing modern and efficient solutions for lighting

and cooking for households, and opportunities for the productive use of energy by small and to

medium enterprises. The latter with myriad of actions including the installation of PV systems for

lighting, fridges, TVs, water pumping and community services, biodigesters, wind pumping systems,

RET7 productive systems and solar heaters, besides grid connected wind power, small hydro, and

bagasse power plants (see Appendix 5 for detailed action plan of the Renewable Energy Strategy8,

filtered to show only those of domestic or productive use, which mostly cover bio energy and solar

energy). Thus, the overlapping interests and available technology result in a still large amount of

possibilities to be explored.

Clearly, improvements to domestic cooking stoves and kilns are the simplest technologies to be

implemented. These improvements impact positively on health, environment, and women and

children are among the most benefitted stakeholders. A potential alternative, still demanding some

technological and commercial developments is that of solar cookers9. At the level of productive uses,

there are either potential for domestic market for manufacture and sales of the improved cooking

stoves and kilns or increases or improvements in the quality of biomass products.

Enormous amounts of energy resources are wasted, especially from agricultural sector. These

residues are not visible on national energy statistics – see Cuvilas et al. [40] for an estimations of the

residue potential in Mozambique. Biodigesters produce gas for cooking, lighting and electric power,

and could be a RET to be explored to take profit of the existence of livestock and fish residues – in

Mozambique the potential is huge, however the experience is limited to few pilot projects.

Pumping for small irrigation is one of the most obvious productive activities in rural areas,

significantly improving food security and with a direct impact on poverty alleviation. Treadle and

wind pumps have been extensively used in East Africa according to GNESD [44], and Mozambique

has had experience with wind pumps in rural areas. The Rural Water Department has given

preference to AFRIDEF (mechanical) pumps, but it is considering the transition to solar (PV) pumps,

7 Renewable Energy Technology (RET). 8 The 42 actions listed in the strategy fall into one of the 3 categories: Institutional development, policy and

regulation, Grid-connected technologies or Stand-alone systems. The Scope of this study will lead us to focus on the later only. 9 The University Eduardo Mondlane, Faculty of Science, Physics Department, is developing and testing

adaptations of solar cookers technology for the Mozambican context.

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for boreholes of higher depths. All these technologies tend to be more competitive than diesel

powered engines.

Solar water heating (SWH) is a RET whose manufacture is easily within scope of current technologic

capabilities in Mozambique, and of wide use in residential, commercial and public buildings. South

Africa is already supporting the manufacture and dissemination of this energy solution, and Austria

is supporting the development of this technology in four Southern African countries (project

Soltrain, see Appendix 4), as a way to reduce demand to the power grid and for its competitive cost

on a life-cycle basis [7].

Biomass gasification is another RET which is growing fast in Asia. It can be used both for rural

electrification and gas supply and is also very labour intensive, but still requires a certain effort of

technological development. As this is normally coupled to large agricultural projects to use their

residues, the technology seems less aligned with a focus of micro/domestic developments. However,

technology developments indicate that, in future, pico and micro gasification devices (for example,

Pyrolytic Lucia stove) will be available for domestic purposes, i.e. given the enormous wood resource

in Mozambique this technology should not be fully dismissed from intervention strategies.

Other renewable energy technologies are biofuels, whose production (ethanol or bio-oil) are

promising agricultural activities, very labour intensive, but more suitable to large scale production.

The organization of networks of farmers, producing collectively for one single off-taker, and of retail

networks for the commercialization of bio-oil and ethanol stoves are however within the scope of

local development.

The main benefits of renewable sources and technologies are universally known, with important

impact on sustainable development, and they are not very different in Mozambique. They include:

• Reducing greenhouse gases (GHG) emissions;

• Reducing local pollution when local use of traditional biomass uses modern devices;

• Contributing to social and economic development through opportunities for cost savings in

remote and poor areas lacking centralized energy access, when using RETs rather than

conventional (imported) fossil fuels;

• Helping accelerate access to modern energy services, a United Nations goal of reducing the

global figures of 1.4 billion people without access to electricity and 1.3 billion using

traditional biomass, worldwide [45];

• Improving women and children’s health by decreasing the risk of dying of pneumonia,

chronic obstructive pulmonary disease and lung cancer due to indoor pollution;

• Decreasing reliance on imported fuels, which contributes to energy security by reducing the

vulnerability to supply disruptions and market volatility;

• Contributing to diversify energy matrices increasing energy security;

• Fostering the domestic industry and creating jobs;

• R&D pushing technological development and future energy cost reductions;

• Reducing construction times of new generation capacity and simpler environmental

licencing, due to their reduced impacts;

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• Complementariness between sources such wind and/or biomass with large dams, where

they exist; wind and biomass, and small hybrid system using solar and wind, occasionally

with conventional diesel sets as back-ups;

• Diversifying the number of agents and investors, due to general decentralized structure;

• Renewable energy technologies have low fatality rates [45].

Despite this long list of benefits, many programs have a more strong impact on urban and better-off

users, with limited or indirect impact on rural and poor population, occasionally increasing

inequalities in rural areas. As said in UNDP report Energizing Poverty Reduction [46], “all too often,

national macroeconomic planning emphasises expansion of large-scale, centralised systems of

energy supply (such as fossil fuel-fired electricity generation or large hydroelectric plants) rather

than focusing on expanded access to energy services (such as fuel for household cooking or

mechanical power for productive uses), which matters most to the poor”.

The development of pico and micro renewable energy solutions, for urban, peri-urban and rural

poor populations, can be the effective way of providing access to modern energy services, to

contribute to the achievement of the Millennium Development Goals and to reduce poverty. There

are, however, several barriers impeding the scaling-up and dissemination of renewable energy

technologies in rural areas, some general for all renewable sources other very technologic specific.

They can include:

Accessibility

• Equipment manufacturing and operation and maintenance (O&M) infrastructure do not

exist, requiring to be built from scrap. This is worsened by high taxes on imported

equipment such as PV modules, wind generators and others;

• Lack of quality standards and certification for RETs, resulting in the discredit of the

technologies;

Affordability

• High investment costs: the affordability of RET for low income households is a major

concern, particularly in early stages of introduction of new technologies;

• Deficient access to financing and credit facilities for potential manufacturers, distributors

and end users of the RETs;

• Non-price competitive with the power supplied by grid, whose rural electrification programs

are normally subsidized. Also, subsidies are often given to conventional sources, such as

imported fossil fuels, resulting in an unbalanced playing field;

Knowledge deficiency

• Lack of technical and marketing capabilities for manufacture, installation, O&M and selling

of RETs. Also, consumers have limited awareness of health, environmental and economic

advantages of RET;

• Limited knowledge of RE potential resources and awareness of RET opportunities;

Policy and regulation

• Lack of institutional strength either at governmental and financial institutions;

• Slow pace of implementation of power sector reforms, with fragile regulatory agencies, and

lack of coherent long-term policies supporting renewable energy developments.

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As many other countries, Mozambique’s energy policies gives strong priority to electricity provision,

but not to heating and cooking fuels; similarly very little emphasis is placed on mechanical power for

productive applications and traditional biomass management. Capacity building and awareness

actions can help to overcome these barriers and will have a greater impact if connected to other

developmental activities, such as agriculture, telecommunication services and water supply, among

others.

Finally, very little prominence is given, in the policies and strategies, to the use of passive solar

solutions for the improvement of peoples’ lives, namely natural solar lighting, solar water

purification and desalination, solar dryers, use of construction materials appropriate for

temperature regulation in living spaces and for food preservation, etc. These “energy solutions” may

be grouped into a set of Best Practices (or, for example, better living with passive solar) that may be

disseminated as a training and demonstration effort for the communities, in association with any

other development programs such as water boreholes, agricultural initiatives, etc.

2.2 Assessment of determining factors and pathways to promote the expansion of renewable sources as vehicles of development and poverty alleviation

The expansion of renewable energy sources is normally determined by the establishment of an

enabling environment for their development and technology dissemination, through policies to

incentivize their wide use, through the availability financial resources, both public and private,

through the increase of public awareness and the acceptance of the technologies, through the

development of technical and institutional capacity at all levels and through the consolidation of

market players.

The expansion of renewable energy (RE) will require a long-term view from government and the

strengthening of key institutional structures, namely the Ministry’s National Directorate of New and

Renewable Energy Sources (DNER) and the National Energy Fund (FUNAE). Energy is rather an input

for development than an end in itself; as such, programs of RE implementation should be closed tied

with other economic areas, such as agriculture, water supply, ICTs, tourism, industry, etc. The newly

approved Renewable Energy Strategy (EDENR) will be implemented with a Steering Committee,

which will ensure this coordination between all relevant economic and development sectors.

Furthermore, the planning of projects on RE will be based on a bottom-to-top approach, starting on

the community needs and potential assessments (“Plano Energético Communitário” - PEC), and

ending in a national investment and expansion plan. The EDENR gives great relevance to the

provision of access to modern energy solutions, whatever source and technology they use,

recognises the importance of domestic energy for development and poverty alleviation, and

recommends the establishment of Communal Energy Spaces (“Espaços Energéticos Comunitários” –

EEC) as intermediate steps to access in remote and rural communities.

The “community twist” can be further explored by establishing the concept of Multifaceted

Community, i.e. communities which are simultaneously resource owners, entrepreneurs, users and

environmental conservationists/auditors. The SNV approach of providing capacity development and

technical assistance to the mezzanine structures, such as provincial and district directorates,

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community associations and local development organizations, is a perfect fit for the exploration of

these multiple roles, in the context of renewable energy for domestic and productive use with the

goal of assisting the reduction of poverty.

Energy contributes to local development and poverty alleviation directly, by providing modern

higher quality energy services with associated benefits, and indirectly, by constituting opportunities

for new income generation activities, on which energy is an input or a product. This section will

assess determining factors and possible pathways to provide assistance in the renewable energy

sector, focusing on the multifaceted community concept with the view of enhancing local

(community) development and contributing to poverty alleviation in Mozambique. The factors and

pathways here described (Table 3) can be explored with the participation of the relevant

communities in complementarity with national RE programs.

All interventions (pathways) must be strongly supported with capacity building, technical assistance,

institutional and market structuring, regulatory and legal instruments, and technical and quality

standards. Where the word community is used, it may refer to the community as an administrative

structure, to a communal association or to individuals from the community. Note however that not

all are feasible at the current development stage of Mozambique, as they require technical skills not

available at the community level.

Table 3 – Factors and pathways to promote RE in a multifaceted community approach

Technical factors Role Pathways: community intervention

Resource Mapping Resource owner Quantification and location of RE potentials available to each community: community can provide with surveyors and data collectors

Needs assessment User Characterization of energy needs in the domestic and productive use contexts: community can provide with surveyors and data collectors

Selection of RETs Entrepreneur Identification of optimal RETs (price and technology wise) for individual and communal needs: community can participate through provision of information and marketing

Design adaptation Entrepreneur Adaptation of RETs to use local materials and to aggregate into specific EEC: community can participate through provision of information and marketing

Resource extraction Entrepreneur Extracting and packaging divisible resources: community can provide labour, as a packager and/or a trader of the local resources

Resource management Auditor Ensuring sustainable use of resources: community must control and enforce limits to the exploration of the local resources

Economic factors Role Pathways: community intervention

Financing mechanisms Resource owner Access to public funds, fiscal benefits and possible subsidies: community may negotiate with GoM the establishment of incentives to develop the manufacture, trading and use of RETs in its own area

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Economic factors Role Pathways: community intervention

Green credits Resource Owner Access CDM funding and other green credits: community must monitor impacts of RETs so as to be entitled to green credits and CDM related funding

Retail networks Entrepreneur Establishment of networks of commercialization of resource and appliances: community can participate as resource supplier and trader and also in the commercialization of appliances

Service networks Entrepreneur Establishment of networks of O&M for appliances: community can participate as O&M service provider, including the supply of spare parts

Credit mechanisms User Access to microcredit for the acquisition of RETs: community may join forces for guaranteeing microcredits among its members, through cooperatives, associations and other organizations

Prices User Affordability of resource and appliances: willingness to pay is not always cost reflective. The community may help contain costs and improve revenues wherever possible in the value chain, so that RE are competitive with other energy supply alternatives

Quality standards for RETs

Auditor Quality and safety of use: communities may train its members and monitor the trade and use of RETs, to ensure that they perform with expected efficiency and quality and with expected safety levels. Community can act as watch dogs and as educators

Social factors Role Pathways: community intervention

Awareness and marketing

Resource Owner The competitiveness of the resource: community may engage public utilities (energy, water, ICTs) and other private (agro-industrial, commercial) enterprises, to engage them in participating in the extraction and use of the RE resources, as part of their social responsibility and, preferably, as a sustainable alternative to conventional energy supply

Technology acceptance User The RE resource and use must be widely understood: community may act as educator and promoter of RETs and of technics for resource management. Community may host demonstration shows.

Environmental factors Role Pathways: community intervention

Best practices User Extraction and use of RE must be as efficient as possible: community may participate in education and monitoring for best practices in manufacture, trading and use of RE sources and RETs in the area

GHG emissions Auditor GHG emission reduction: community may participate with surveyors and data collection officials, and as a watch dog for the reduction of emissions

Passive solar energy and environmental protection must be incorporated into the daily lives of

communities and acquire a “cultural dimension”. This can only be achieved through continuous

information dissemination, training and demonstration of benefits of “best practices”. SNV mission

fits perfectly with this, through programs for nurturing and training communities into adopting

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(energy use) habits that make use of local resources and provide better life conditions. These

programs can be structured to be associated with any and all development interventions, regardless

of the initiating agency or the object of the development program.

Other actions are required at the national level, namely the development of regulatory instruments

and incentives, the establishment of fiscal and financial benefits to private initiative and others.

However, these are not within the scope of intervention of SNV and will not be further discussed.

2.3 Assessment of existing legal and institutional framework of the Mozambican power sector and the niche of renewable energy

Mozambique has a long tradition of using the two most conventional renewable resources: biomass

for heating, despite being used in a traditional and inefficient way, and hydropower. Electricity Law,

from 1997 [47], despite not mentioning renewable energy, recognizes that one of the objectives of

the power sector policy is searching alternatives to power supply, and devolves to the advisory

regulatory board – CNELEC – the competence to draft proposals to promotion and adoption of new

technologies. This law is under review and the new draft acknowledges the need for environmental

conservation and appropriate licencing and monitoring of the carbon footprints of generation

projects. This of course is a promising framework for the development of renewable energy.

Three legal instruments are of relevance to the development of the Renewable Energy (RE) sector,

namely the 2009 Energy Strategy [25], the 2009 Policy for the Development of New and Renewable

Energy [26] and the 2011 Strategy for New and Renewable Energy [43]. This section will discuss their

main focuses and how it frames the development of renewable energies in Mozambique.

The 2009 Energy Strategy

This document encourages the use of new and renewable sources of energy, particularly solar

(photovoltaic and thermal) and wind power. The strategy plans for the strengthening of technical

capacity of institutions researching on those technologies; the support for feasibility and adaptability

studies for the conditions in the country; the promotion of pilot experiences which may serve as

demonstration and training centres; the promotion of programs for rural credit directed towards

expanding access to RE technologies, namely revolving funds, cooperatives or promoting funds; and

the introduction of fiscal incentives for using renewable energy sources, when applied for satisfying

basic needs of rural populations.

The strategy encourages private sector and civil society in general, to get involved in the

dissemination of solar heating, photovoltaic and wind. Government in particular stimulates the

creation of companies and associations, in the local environments, which have for objective the

production, commercialization, assembling and maintenance of solar and wind energy, according to

sustainable modalities in the rural area.

The strategy sets the framework for biomass. It recognises that it is the source that most of the

population uses nowadays in the country. The policy aims at: a gradual reduction of the use of

biomass, replacing it with other energy sources; sustainable management of forest and firewood

resources; encouraging reforestation; introduction of technical improvements for increased

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efficiency; promote training and information dissemination on improved cook stoves, which have

proven to be more efficient and with low cost; research and promote technology that assure a more

efficient use of biomass.

The strategy further elaborated on efficiency and energy conservation (promote energy efficiency

and conservation at different levels); prices and tariffs (government will continue to fix prices to

protect consumers, but including all what is needed for a profitable business); restructuring of the

sectors of electricity and oil (the government opens the sector for private investment and

decentralization, keeping the management of the national grid); sectorial legislation (new laws for

energy, electricity and oil, elaboration of model contracts, compilation of legal system, signature of

international agreements for export of energy); institutional strengthening; regional cooperation

(priority is given to SADC development in energy, interconnection, harmonisation of fiscal and

investment regimes, common technological research).

A 2009 Energy Strategy introduces the concept of Community Energy Spaces (“Espaços Energéticos

Comunitários” – EEC) and defines energy strategies comprising, among others, provisions for: (i)

small hydro power plants (rating up to 15MW), simplifying licensing procedures; (ii) wind power, to

establish a legal framework for independent producers with provisions on concession granting,

licensing, tariff calculations and access to RNT; (iii) solar, adoption and enforcing of legislation

fostering use of solar heating systems.

This strategy also reinforces the National Council for Electricity (“Conselho Nacional de

Electricidade” - CNELEC), as a regulator for the electricity sector, and the National Energy Fund

(“Fundo Nacional de Energia” - FUNAE), who congregates and manages all public funds for the

promotion, development and use of renewable energy. FUNAE is a key player in rural dissemination

of RE sources for development. The National Directorate of New and Renewable Energy (DNER) is

also given the mandate to develop policies and strategies, and the legal and regulatory instruments

for the promotion, development and use of renewable energy in Mozambique.

The 2009 Policy for the Development of New and Renewable Energy

Council of Ministers (Cabinet) approved on October 14, 2009, the Policy for the Development of New

and Renewable Energy, with the objective of promoting the use and exploitation of the available

renewable energy resources, in order to accelerate people’s access of modern sources of energy and

to create a platform supporting investment in this subsector. The policy first describes the sources of

renewable energy that are included: human and animal traction, agricultural and animal wastes,

fuelwood, energy crops, hydro, solar radiation, wind, geothermal, ocean and tidal.

The policy objectives are to promote the supply of good quality services of renewable energy at

affordable prices, particularly in the rural areas; to promote the use of sources of renewable energy;

to strengthen energy security at local and national level; to decrease negative environmental impact

at local and global level; to foster technological development of the subsector; to create a

competitive market for renewable energy; to contribute for income generation and employment

creation, including self-employment, for poverty alleviation at local and national level; and to

contribute for achievement of the Millennium Development Objectives (MDGs). The policy is built

around the principles of economic efficiency, equity and sustainability. It plans to work in two fronts:

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a) the conversion of traditional sources of energy into more modern, more efficient and of better

quality systems; b) the encouragement to diversification of the energy matrix through integration of

more efficient and sustainable energy systems.

For implementing the Policy it is necessary to undertake a series of strategic actions. Ordered by

priority, these actions are the assessment of resources for RE; the promotion of resources for RE; the

satisfaction of needs of energy; institutional capacity development; market development; the

creation of incentives; the development of human, financial and knowledge resources; regional and

global cooperation; the creation of strategies and specific legal instruments; and the involvement of

relevant actors in the implementation of RE.

The policy goes deeper on each and every of these actions. There are obvious areas of interventions

very much aligned with SNV scope and methodology. For example: Institutional Capacity

Development (strengthen capacity in the public and private sector for funding and technological

transfer), Market Development (promote high value RE energy pilot projects in areas where capacity

is already installed and build from there), Development of Human, Financial and Knowledge

Resources (developing curricula for technical and vocational education, favour Public-Private-

Partnerships to fund the system).

The 2009 Policy and Strategy for Biofuels

The policy [48] is based on the following general considerations: 1) the production of biofuels is an

economic activity essentially driven by the private sector, and can be implemented also as a private-

public partnership; 2) sector development should encourage internal (governmental) cooperation by

strengthening existing inter institutional linking, strengthening cooperation with development

partners and strengthening the implementation of Kyoto Protocol mechanisms, in order to stimulate

the production and use of biofuels and therefore contributing to an effective reduction of

greenhouse gases. Goals to achieve are, among others:

• To stimulate sustainable production of biofuels on the basis of local energy resources, to complement imported fuels;

• To promote rural development through investment in biofuels and support to small scale producers;

• To stimulate rural income generation by the expansion of the cultivated area and increased productivity;

• And to stimulate and encourage technological development at local or community level.

The policy describes the roles of all intervening actors within the biofuels subsector: government,

civil society, small scale producers, training institutions and development partners. The policy also

creates the National Program for Biofuels Development, and ends by establishing a chronogram and

deadlines. It is divided in three phases: Pilot phase: 2009-2015, when the Program for biofuels

buying (Programa de Compras de Biocombustiveis – PCB) will buy all produce from national

producers. Operational phase: 2015-onwards: consolidation of the sector with potentially achieving

the highest levels of mixtures. Expansion phase: 2011 onwards, involving separate distribution grids

and parallels for fuels with higher percentages of ethanol and (E75 and E100) and pure biodiesel

(B100), respectively.

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The coordination of the implementation of the policy and strategy is the National Commission on

Biofuels, which is created in the same document, and its functions are listed. The indicative budget

for 2009-2013 is 243 million MTN (around 9.350 million USD), of which Educational programs

represent 9% and Biofuels Research and Value Chain Development represent 12.4% of the total.

The 2011 Strategy for New and Renewable Energy

Council of Ministers (Cabinet) approved on May 17, 2011, the Strategy for the Development of New and Renewable Energy, with the objective of creating conditions for communities living far away from the national grid to access energy resources. The strategy is due to be implemented over the 15 year period 2011-2025, and will regulate and put into operation the use of renewable sources for the generation of electricity.

The strategy objectives are to improve access to energy services of better quality, through renewable sources; to develop technology for use and conversion of renewable energy sources; and to promote and accelerate public and private investment in renewable resources. This strategy is framed with the general objective to favour universal access to good quality, modern and efficient energy sources, as promoters of development.

The strategy identifies 33 actions that develop the knowledge and regulatory framework for the expansion of the utilization of RE sources and RETs in Mozambique, and that concern the supply of renewable energy to households and businesses (see appendix). Each and all of these actions constitute an opportunity for SNV intervention with capacity building, technical assistance, R&D support and pilot projects, with focus on domestic and productive uses of energy.

The main institutions to implement development programs, guided by the above RE policy and

strategy, are the National Directorate of New and Renewable Energy (DNER), with a focus on

regulation, facilitation and promotion of RE and RETs, and the National Energy Fund (FUNAE), which

will fund and incentive RE projects for development.

Opportunities and barriers for the promotion and expansion of Renewable Energy in Mozambique

The development of the RE sector will be framed by these regulations, which:

• recognize the large potential in Mozambique for development of various RE resources;

• identify technological developments, technical education and endogenous research as necessary components of the socio-cultural and commercial sustainability of RE solutions;

• show a clear encouragement of private sector investment and participation, and the support to commercial enterprises; and

• lastly but least, includes the RE resources in the portfolio of the energy sector giving it an important role for matrix diversification, local and community development and poverty alleviation.

However, the framework appears too ambitious, particularly because fiscal benefits, pricing

mechanisms and other financial incentives are not yet structured, making commercial and private

investments in RE sources unattractive to make. Particularly, with regards to the policy and strategy

for biofuels, the objectives set out are very good, yet recent experiences with the Jatropha project

(produce with no buyers) show that the implementation of laws is not easy or straightforward.

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When evaluating the opportunities for intervention, SNV should consider the extent to which

individual programs will lead to increased income and improved living conditions, how attractive

and sustainable, and geared to small scale producers, are they.

3. Identification of opportunities 3. Identification of opportunities 3. Identification of opportunities 3. Identification of opportunities forforforfor interventioninterventioninterventionintervention

This chapter is based on the information collected through interviews with several respondents, see

list in Appendix 3. The section filters the various on-going projects (Appendix 4) on RE resource

development and technologies and discusses opportunities for mobilization of funds for SNV

interventions. Although the current study will advise on SNV’s positioning for 2011-2015 only, some

of the opportunities here identified are medium to long term to completion, well beyond 2015.

3.1 On-going projects with a RE component or opportunity for intervention and their categorization by relevant criteria

In the course of the study, several interviews with government agencies, donors, private sector

agents and other groups operating in the energy sector were conducted. From these, 16 projects

were identified as either energy projects (12) with a RE component, or as SNV projects that may

constitute vehicles for SNV’s intervention in the RE sector (4). They are listed and descried in

Appendix 4.

Project ranking

These projects were evaluated based on SNV criteria, corporate and national, given and explained in

the ToR (Appendix 8), and the resulting ranking (see Appendix 4) has helped in the final

recommendations for SNV interventions. From this ranking exercise, using a scale from 1 to 3, with

one being the lowest compliance with the criterion, and 3 being the highest, the following projects

were excluded: “The Mozambique Honey Company”, “The Bananas of Munguíne”, “The Emerging

Farmers” and the “Maputo Tourism Observatory”, because they don’t have a direct energy

component. In the future, SNV should study potential use of RE in the three agricultural projects, as

they have complementarities and synergies with current SNV interventions in Mozambique; the

same applies to the Maputo Tourism Observatory, which is a forum for knowledge brokerage.

The ranking of the 12 (energy) projects resulted in the following priorities:

Priority Project

1 Fogões e Fornos melhorados

2

Iniciativa 1 milhão

Prosanar

Bombas solares

Production of Brickets

3 E3 Mozambique

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Priority Project

4 ACP vila in Nampula

5 Projecto 40 vilas

6 Biodigestor in Magude

7 Soltrain

Jatrofa Revival

8 Clean Star Mozambique (CSMCB)

It is fortunate that SNV has large experience in Improved Cook Stoves (ICS) and has been one

founding member of the Global Alliance for Clean Cookstoves, and as such will be able to offer high

expertise for the priority on-going project in the sector of renewable energy.

Mozambique has a large solar resource and PV technologies are so diverse and so much appropriate

for domestic or small uses, that it is not surprising that solar PV projects are the next high priority of

intervention for SNV.

Finally, biodigesters for rural communities, jatropha plantation and commercialization for energy

application (biodiesel), Solar Water Heaters and Ethanol retail markets, are all potential areas of

intervention for SNV, whose international expertise in biofuels, biodigesters and in the Multi

Stakeholders Processes can be a great contribution to the sector development.

3.2 Resource mobilization for SNV interventions

The information received from development agencies (Appendix 6) show that although some effort

is being made on the renewable energy sector, it is still tentative, probably because only recently the

national RE strategy (EDENR) was approved at the Council of Ministers. FUNAE and the Ministry are

the more common receptacles of funding for Renewable Energy, as Electricidade de Mozambique

(EDM) is yet to develop a RE Strategy for itself.

The interviews with respondents indicate that the World Bank (WB), the European Community (EC),

The African Development Bank (ADB), the Norwegian Embassy, the Belgium Embassy and the OPEC

Fund for International Development (OFID) are the major supporters of energy access and

renewable energy programs. Smaller but still significant contributions are those of the German, the

British, the Dutch and the Austrian Governments. These agencies have on-going and pipelined

programs for RE, which may increase into a better coordinated effort in the context of implementing

the newly approved RE strategy.

Resource Mobilization (RM) opportunities for SNV in the RE sector in Mozambique, are as follows,

but not limited to:

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Institution Remarks

World bank - 6 million USD were allocated to FUNAE for the ICS program. This amount will be put up for tendering on specific related activities, and SNV will be able to apply to (RM). The first round of funds has been allocated to Kulima Consortium (Gaza). Next round will target Manica province and will be tendered in July-August 2011. In the future, the program will extend to Inhambane and Niassa - In this project, there is a fund of 1 million USD allocated for innovation in the biomass / charcoal cooking stoves sector, which may also be an opportunity for RM

European Union - 2nd phase of the EU Energy Initiative (EUEI) amounted to 100 million € worldwide, for 65 projects10 (ACP villages with FUNAE, CB with Ministry, Green Resources and ADPP). This fund also financed the Energy Strategy for SADC. A third phase will be launched probably next year - It is recommended to to keep track of this funding window at: http://ec.europa.eu/europeaid/where/acp/regional-cooperation/energy/index_en.htm . - Another possible funding source is under the program for Environment and Sustainable Management of Natural Resources including Energy (ENRTP), whose priorities include the “supply of sustainable energy in developing countries” and the support to “sustainable management of natural resources “, among others, http://ec.europa.eu/europeaid/how/finance/dci/environment_en.htm

USAID - Indicated that they would start a RE program in the tourism sector (improving the generation and utilization of energy in the tourism sector), which is a possible source for RM as SNV has a good track record on tourism

Swiss Cooperation Currently re-writing their strategy on RE sector in Mozambique, but indicated to be very satisfied with partnerships with SNV in the water sector. Their new program may have a component of solar irrigation. It is a potential partner for RM, to be pursued.

African Enterprise Challenge Funds (AECF)

They have a “Renewable Energy and Adaptation to Climate Technologies Competition (REACT), of which call for proposals finished on the 15 April 2011 (Round 1). REACT provides grants of up to 1.5 million dollars to businesses. Round 2 will be launched in September 2011. Implementation has to take place in Tanzania, Burundi, Kenya, Uganda or Rwanda. However, in conversations with the Royal Netherlands Embassy in Maputo (one of the main donors for the fund) it was expressed their interest to expand the program to Mozambique. This and should be tracked by SNV as potential source of RM. http://www.aecfafrica.org/index.php?option=com_content&view=article&id=15&Itemid=31

Climate Investment Funds (CIF)

Channeled through the African Development Fund, the World Bank and others, currently support the Program on Scaling-Up Renewable Energy in Low Income Countries (SREP), for which Mozambique is eligible, http://www.climateinvestmentfunds.org/cif/srep

10

Two of which in Mozambique : Enabling 25,000 people to access sustainable small scale solar power in Quissanga district, Cabo Delgado and Sustainable Wood and Charcoal Production in Rural Mozambique, Malawi and Tanzania.

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Institution Remarks

Clean Development Mechanism (CDM)

It should explored under the Program of Activities (POA) approach, inside either the CDM or other Carbon Markets

Renewable Energy and Energy Efficiency Partnership (REEEP)

- Currently running a PFAN (private financing advisor network) in Mozambique, co-founded by USAID, amounting to 115 000 € (including Uganda). This project intends to achieve “financial closure on 4-8 medium scale clean/RE projects”, totalizing 10-60 million USD. In these projects, there is an opportunity for RM, however the PFAN has a deadline for end of 2011 http://www.reeep.org/showProject/2518.107010105/establishing-pfan-in-mozambique-uganda.htm - REEEP regularly launches Requests for Proposals (RFP) and is a potential source for RM, to be tracked by SNV

SNV should participate in the roadshows that regularly are organized by the Ministry of Energy and

FUNAE, to gather donor support in the implementation of the Government’s strategic actions. It will

be difficult for SNV to enter the energy sector without its own funding, as it does not yet have a

reputation of technical assistance in the field. If SNV can start its participation in the RE sector with

funding of its own origin and clear goals and objectives, it will be easier, at a later stage, to develop

partnerships with other multilateral financing agencies. All programs of Renewable Energy,

resources and technology, contain an element of capacity and institutional development. SNV may

establish is reputation in providing the quality assistance in these areas, and funding opportunities

will also be available.

Funding for RE consumers

In addition, some funding schemes are available for consumers who want to invest in RE solutions,

although they are not well advertised, namely:

• The German Development Bank (KfW) has allocated a fund for commercial banks in Mozambique (Banco Terra is one of them), totalizing 1 million Euros, to serve as collaterals or credit for microcredit applications. Two thirds of the amount is established as revolving funds, one third as guarantee funds. This fund is expected to provide a 15-20% reduction on interest rates.

• The Belgium Cooperation has allocated 1 million Euros to FUNAE, to establish microcredit funding mechanisms for consumers, aimed at small RE systems particularly solar. Specific conditions of the fund are still under elaboration; however, it is expected that the fund will facilitate the dissemination of PV kits such as solar lanterns and others.

The supply of RETs in the market does not yet benefit from fiscal exemptions or incentives, not even

when the equipment, mostly imported, is used in poverty alleviation programs. Consequently, RETs

still compete with other energy technologies, even though they may be less efficient and with higher

carbon footprints.

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4. Specific recommendations4. Specific recommendations4. Specific recommendations4. Specific recommendations

In Appendix 7, a short description of SNV was included, as a reference for how the consultant

understands the organization and its mission. The following methodological approaches are at the

core of SNV’s interventions: development clusters and micro-poles or Local Economic Development

(LED), Inclusive Business (IB) and Emerging Farmers (EF). This chapter will discuss the opportunities

for SNV interventions, recommended based on the sector knowledge and on opportunities

contained in the 16 projects listed in Appendix 4. The chapter will first elaborate on Capacity Building

and Institutional Development opportunities, and then on the opportunities for LED, IB and EF,

always keeping in line with SNV’s goal of supporting domestic and productive uses of energy as a

means of contributing to poverty alleviation. Value chain analysis (VCA) and Knowledge brokering

(KB) are tools for planning and implementation of SNV’s interventions and goals. The chapter will

finally recommend on priority actions for the period 2011-2015.

4.1 SNV interventions: capacity building & institutional development

Capacity building and institutional development (CB&ID) are among few strategic actions of the

newly approved Renewable Energy Strategy (EDENR), see Appendix 5. Action 28 plans the “wide

dissemination of the knowledge about RETs, for use and conversion of renewable energy (RE)

sources, through regular programs of information and education, in communities and schools” up

until 2013, and Action 34 plans for regular information vehicles for the knowledge on RETs and RE

resources, as well as on the status of the RE sector development, to be completed up until 2015.

Action 42 plans for capacity (institutional) development of provincial and district offices, so that RE

programs are designed with strong alignment between the local community energy plans/needs

(PECs) and the central strategy (EDENR), with completion planned for 2015.

Besides these direct knowledge-dissemination interventions, the strategy contains several

technology development and implementation (strategic) actions that will require, each, a strong

element of capacity building. Capacity and institutional development can consequently be organized

with knowledge dissemination as an objective “per se” (under the umbrella of the strategic actions

knowledge-related of the EDENR) and/or with the objective of supporting economic and social

development enterprises or programs, which contain elements of renewable energy use.

Appendix 4 lists and comments on the opportunities of intervention for 16 on-going projects

identified in the course of the interviews, 12 of which have an energy component and of interest for

SNV mission. This chapter will discuss the opportunities for capacity and institutional development

(CB&ID), including studies of Value Chain Analysis (VCA), from all these projects and in the context of

the EDENR, structuring them into possible SNV interventions.

CB&ID 1: Provide Capacity Development Services for RE resources and technologies, including best

practices in using passive solar energy for domestic users

SNV usually provides training on programs directly linked to an increase of income, production and

employment or access to basic services; public awareness is not SNV’s forte. However, the wide

knowledge on resources and technologies is crucial to the adoption and expansion of the RE sector,

at the micro level of residential and for productive uses.

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Through modular training packages to be disseminated through LCBs, or Capacity Development

Services (CDS), approved by the Ministry of Energy as standard to make available to any community

project of any economic sector, SNV could provide its expertise in RETs to the implementation of RE

strategy in the country. Note that these CDS are likely to be funded by multilateral support to the

implementation of the RE strategy in Mozambique (EDENR), as they meet the objectives of Actions

28 and possibly also 34 of the EDENR.

These CDS modules should focus on technologies in which SNV is familiar and has wide experience

with (biodigestores, biofuels, improved cook stoves, water mills and small solar PV) or, as

recommended in SNV’s vision paper in 2010, they can be structured to cover sets of viable portfolios

of RETs, available in Mozambique, for domestic cooking, domestic lighting and for productive use.

Existing partnerships of SNV in the agricultural, tourism and water sectors, such as The Mozambique

Honey Company, The Bananas of Munguíne Company, The Emerging Framers, can also provide

opportunities for CDS provision on RE resources and technologies, and provide opportunities for

synergies with economic development sectors and for knowledge brokering.

CB&ID 2: Knowledge brokering on RE in Mozambique

Knowledge on RE resources and technologies must be made available, accessible, normalised, easy,

and common to the population of entrepreneurs, users, planners, government officials, financiers,

etc. This can be, in itself, a medium to long term program of strategic importance and with

enormous impact in the development of the sector; indirectly, it will facilitate the ultimate goal of

poverty alleviation through access to modern energy solutions for domestic and productive use.

SNV’s expertise in some RE areas can be easily shared with the RE sector in Mozambique, through

the organization of debates, open to the public and sector’s stakeholders, and containing an element

of information sharing and also useful discussions of specific aspects of development of the RE

sector in Mozambique. These debates can gather national and foreign specialists on the theme, and

become the embryos of a dynamic network for information dissemination and sharing, coordinated

planning and collaboration. SNV should champion the establishment of a RE network, modelled by

SNV’s successful experience in setting up the Maputo Tourism Observatory.

CB&ID 3: Adjust SNV’s logbooks, developed for (mechanical) water pumps, to include the

operating requirements of solar photovoltaic technology (for solar pumps and possibly other PV)

FUNAE has indicated that their solar water pumps (“Bombas Solares”) are run with “management

committees”, modelled in the concept of the “water committees” - structures created for the

operation of mechanical water pumps installed by projects “Iniciativa 1 milhão” and “Prosanar”.

The water committees benefit from CDS provided by SNV through LCBs, and make use of the water

logbooks, developed by SNV to facilitate the mobilization of operating funds for the pumps, from the

beneficiary community. FUNAE projects on solar water pumps also need to organize the

beneficiaries in gathering small operating funds, key to the durability of the installations.

SNV should share his knowledge and experience, by developing the original logbooks for its

application in installations of solar PV water pumping, and possibly also for the operations of stand-

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alone PV systems and of PV semi-centralized mini electricity grids, installed by FUNAE e various

villages of Mozambique (“ACP vila em Nampula” and “Projecto 40 vilas”).

CB&ID 4: Analyse Value Chains of bio energy and solar RETs

Due to the vast experience of SNV in Value Chain Analysis and Development (VCA&D), it is highly

recommended that SNV offers its expertise to carry out the study and composition of value chains of

key RE resources and technologies, namely:

• The Charcoal Value Chain, including Improved Cookstoves (ICS),

• The Brickets Value Chain, including manufacture of bricket presses and in complementarity with Charcoal Value Chain,

• The Jatropha Value Chain, for supplying the bio-diesel transport industry,

• And The Solar PV Value Chain, for solar pumping and for electricity generation, with special interest in aspects of sustainability and private sector participation.

FUNAE has programs on charcoal ICS and solar PV, and DNER is running the Brickets and Jatropha

projects. Solar PV so far adds about 10% of the access rate to modern energy in Mozambique11, and

will continue to develop alongside conventional electrification. SNV should partner with strategic

players, such as FUNAE and DNER, to ensure that planning for RE expansion in Mozambique is based

on VCA&D approach.

CB&ID 5: Private sector support, marketing and retail networks improvement, and facilitation of

access to funding

Several projects contain elements of technical assistance for installation and O&M service providers

(pico PV devices and SWHs) and of manufacturers of equipment and accessories (ICS and SWH), the

establishment and strengthening of retail commercial networks (pico PV devices, SWHs and ethanol

stoves), and the organization of individual farmers in producing for a single off-taker, such as the

national biodiesel program (Jatropha) and Clean Star (crops for Ethanol production).

The sustainability of RE development in Mozambique requires that private sector enterprises, as

suppliers of equipment, of service or as consumers of RE, have access to funding, to knowledge and

to legal protection. Of major importance is the reinforcement of service and retail networks for the

provision of installation and O&M, and the supply and replacement of spare parts, particularly in the

case of imported technologies such as the pico PV devices and PV systems for electricity generation.

Favourable regulations coupled with well-trained governmental bodies, at the central and at the

district levels, will facilitate the mobilization of private sector investment for RE. SNV may contribute

with its vast experience in training on financial processes and project structures, in supporting and

expanding markets and networks, and finally in linking funding schemes with potential micro-credit

beneficiaries.

Potential LCBs in the Renewable Energy Sector in Mozambique

The identification of a list of potential LCBs exceeded the scope of this study, and merits a specific

research which could be done over time. However, during the course of this research, we came

11 Source: http://diariodigital.sapo.pt/dinheiro_digital/news.asp?section_id=20&id_news=158858

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across with some information on specific organizations which can act as potential LCBs for SNV.

These are:

KULIMA - Organismo para o Desenvolvimento SocioEconómico Integrado (Organization for

Integrated Socio Economic Development): Kulima’s approach is to develop programs that address

income generation and cross-cutting themes like HIV/AIDS, gender, and education in order to

achieve total community development. KULIMA is a national NGO, with offices in the Northern,

central and Southern Mozambique. SNV has experience working with them as them both were

founding members of the Natural Resources Network in Nampula. They are mentioned by GIZ as

implementers of their program on pico PV systems and they have been allocated a grant from the

World Bank (through FUNAE) recently in order to implement a program on Improved Cook Stoves

(ICS) for the province of Gaza.

ADEL - Agencia de Desenvolvimento Local (Local Development Agency). ADEL is an NGO which main

aim is to contribute to local economic and social development. It has representations in Nampula,

Sofala and Southern Mozambique. ADEL is an offspring of the program of Decentralized Finance and

Planning (mainly UNDP, Nampula). SNV has worked with them in developing a common

methodology for Value Chain Analysis in Nampula. ADEL Sofala implemented a program on pico PV

systems for GIZ.

ADPP – Associação de Desenvolvimento de Povo para o Povo (Association for Development from

People to People). ADPP is a long term partner from SNV in Nampula. They have worked together in

the cashew sector, in several projects. ADPP has experience in the RE sector, since it is responsible of

a biogas project in Bilibiza, together with the National Directorate of New and Renewable Energy.

VASCO EQUIPMENTS - Vasco Equipments is a company funded by a Mozambican entrepreneur:

George Vasco. He is one of the providers of PV systems to FUNAE, but recently he has received

training in Kenya on biodigesters for biogas, and he is planning to expand his business into that field.

As expert in the infrastructure / technical field, he can be one of the LCBs creating capacities of local

organizations on operation and maintenance of PV systems, and on building and adaptation of

biodigesters for biogas.

4.2 SNV interventions: value chains, knowledge brokering, local development, inclusive businesses and emerging farmers

Value Chain is: “The description of the full range of activities which are required to bring a product

or service from conception, through the different phases of production (involving a combination of

physical transformation and the input of various producer services), delivery to final consumers, and

final disposal after use.” 12 By identifying the flow of all the products and all the processes of a

certain activity, it is possible to identify were optimization and strengthening is possible and to

quantify the benefits of these interventions for the target groups.

12 Kaplinsky, Raphael and Morris, Mike.(2000). A Handbook for Value Chain Research. Prepared for

the IDRC. Quoted in: Maker Associates Limited Course on Value Chain Development (VCD) 18th –

22nd August 2008. SNV Mozambique, Maputo.

VE.MZ
Realce
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The Renewable Energy sector is emerging in Mozambique and will run in parallel with existing

energy solutions such as the national electricity grid, firewood and charcoal supply chains, kerosene

and candles for lighting, and LPG for cooking in urban centers. This section will discuss the general

format of supply and demand (S&D) “chains” for the RE resources, how the identified projects fit

into to them and what methodological approaches are applicable.

SNV interventions will probably concentrate in the capacity development of communities,

associations and enterprises, which are players in the activities of these S&D chains. The concept of

a multifaceted community should underline the planning for SNV interventions as it responds to the

multiplicity of roles to develop in the S&D chains, which in turn correspond to different

methodological approaches.

Bio energy

Looking at the charcoal supply/use chain (Figure 5), it is obvious that many of its activities are part of

or related to the identified projects and within the scope and experience of SNV. This S&D chain is

similar to that of other cooking organic resources (Table 4): the resource will be no longer “forest”

but “agricultural produce”, and the “charcoal stove” will become respectively other types of stoves.

In the case of biofuels (ethanol and biodiesel), a “sole off taker” must be considered , as these

projects plan to primarily supply the market of transport fuels, rather than the domestic market. All

these projects provide opportunities for job creation, in agriculture, technology related, commerce

and servicing, and provide alternative fuels for cooking (and some also for lighting), or an efficiency

gain when burning charcoal.

Solar energy

Looking at the general Supply and Demand (S&D) chain for solar energy resource and technology

(Figure 6), it is evident that SNV’s scope of intervention with impact in sustainable local development

pro-poor should concentrate on links A.2, C and D, for photovoltaic and thermal technologies, and

also on link B for passive use of solar energy. Again, SNV’s methodological approaches can be

applied to RETs development, under the concept of a multifaceted community, and capacity

development be provided accordingly (Table 5).

With exception of Soltrain whose RET can be built in Mozambique, the provision of installation and

maintenance services are the only opportunities for entrepreneurship of communities. Even when

not locally produced, solar energy solutions can become part of a distribution chain (and SNV can

play a role in setting up these innovative distribution chains), creating income generating

opportunities. However, the technologies are new and complex and require a lot of training for

design and installation, as well as for use and maintenance.

Furthermore, the community may me engaged, after acquiring a good understanding of the

resource, into operating, maintaining and reporting to the National Meteorological Authority (INAM)

on solar radiation levels and other renewable energy resources available in the area (river flows,

rainfall and evaporation levels, anemometers and other wind measurement devices).

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Figure 5 – Supply & Demand (S&D) chain for charcoal

Table 4 - Links in the S&D biomass chains

Projects Links to Figure 5 R E U A Potentials for LED, IB, EF

Fogões e fornos melhorados (ICS)

Links 19 to 28 from the charcoal S&D chain

X X X E. Charcoal stoves and kilns (LED)

Production of brickets

Complementary of links 6, 13, 18, 28 for the charcoal S&D chain

X X X X

D. Sole off-taker of residues and organic material to produce brickets on an industrial scale (IB) C. Brickets commercialization (IB)

Biodigester in Magude

- Complementary of links 6, 13, 18, 28 for the ethanol and jatropha S&D chains - Links 19 to 28 from the charcoal S&D chain

X X X E. Gas lamps and stoves (LED)

Jatropha revival Jatropha S&D chain X X

D. Sole off-taker of jatropha (IB) A. Agricultural produce (EF)

Clean Star Mozambique

Ethanol S&D chain X X X

A. Agricultural produce (EF) C. Ethanol commercialization (IB) E. Ethanol stoves (IB)

The main factors to overcome in a multifaceted community are: (see Table 3) R) Resource owner: Resource Mapping ; Financing mechanisms ; Green credits ; Awareness and marketing E) Entrepreneur: Selection of RETs ; Design adaptation ; Resource extraction ; Retail networks ; Service networks U) User: Needs assessment ; Credit mechanisms ; Prices ; Technology acceptance ; Best practices A) Auditor: Resource Management ; Quality STD for RETs ; GHG emissions

A. Forest resource

1. Mapping 2. Harvest3. Cut & Process

4. Transport5. Resource

management6. Residues

B. Charcoal Production

7. Kilns manufacture

8. Production 9. Packaging 10. Transport12.

Production Managmnt

13. Residues

C. Distribution

and Sales

14. Agents of Sales

15. Distribution

networks16. Transport

17. Sales Management

(retail)18. Residues

D. Sole off-taker

E. Charcoal stoves

19. Manufacture

20. Distribution

networks21. Transport

22. Sales Management

(retail)23. Prices

F. Users 24. Stoves technology

25. Information for efficiency

and safety

26. Health and safety

management

27. WTP, prices

28. Residues

Regulation and Taxes

Quality Standards

Environmental Impact Mitigation and Management

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Figure 6 - Supply & Demand (S&D) chain for solar energy

Table 5 - Links in the S&D solar chains

Projects Links to Figure 6 R E U A Potentials for DC/MP, IB, EF

Iniciativa 1 milhão

Links 11 to 17 X X X

A. Resource mapping: operation and maintenance of reading stations (IB) E. Maintenance and spare-parts supply to end-users (LED)

Prosanar Links 11 to 17 X X X

Bombas solares Links 11 to 17 X X X

E3 Mozamb. Links 7 to 17

X X X

C. Network of retailers of PV pico appliances (LED, IB) E. Maintenance and spare-parts supply to end-users (LED)

ACP new village Nampula

Links 11 to 17 X X X

A. Resource mapping: operation and maintenance of reading stations (IB) E. Design and installation of PV system (LED) E. Maintenance and spare-parts supply to end-users (LED)

Projecto 40 vilas Links 11 to 17

X X X

Soltrain Links 3 to 17

X X X

B. Manufacture of SWH (LED) C. Network of retailers of SWH (IB) E. Maintenance and spare-parts supply to end-users (LED)

The main factors to overcome in a multifaceted community are: (see Table 3) R) Resource owner: Resource Mapping ; Financing mechanisms ; Green credits ; Awareness and marketing E) Entrepreneur: Selection of RETs ; Design adaptation ; Resource extraction ; Retail networks ; Service networks U) User: Needs assessment ; Credit mechanisms ; Prices ; Technology acceptance ; Best practices A) Auditor: Resource Management ; Quality STD for RETs ; GHG emissions

A. Solar resource

1. Mapping2. Resource

management

B. Technology availability

3. Design adaptations

4. Manufacture

of RET5. Packaging

6. Production Managmnt

C. Distribution

and Sales

7. Agents of Sales

8. Distribution

networks9. Transport

10. Sales Management

(retail)

11. O&M services

provision

D. Users12. Selection

for users’ needs

13. RET solutions

(appliances)

14. Information for efficiency

and safety

15. Health and safety

management

16. Maintenance

managmnt

17. WTP, prices

Regulation and Taxes

Quality Standards

Environmental Impact Mitigation and Management

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4.3 Recommendations on SNV intervention in the renewable energy sector for years 2011-2015

The energy projects identified in Appendix 4 are of biomass or solar based technologies. No projects

in wind, mechanic power and hydro technologies are identified as being of immediate interest for

SNV intervention, although they are still valid solutions for Mozambique, and as such should not be

discarded from SNV medium to long term intervention plans. This section recommends on best

interventions for 2011-2015 of SNV, differentiating “quick wins” from strategic actions and

partnerships, based on the previous discussions and analyses.

SNV has strengths that can add to the existing conception and structure of the RE sector in

Mozambique, namely:

• its focus in the mezzanine levels (provincial, district and community levels) for capacity and institutional development actions;

• its concern with the sustainability of development actions;

• its experience with tools such as Value Chain Analysis (VCA) and Knowledge Brokering (KB);

• its preference to Multi Stakeholder Sector Development (MSSD) approach while planning development actions; and finally,

• its experience and contacts in other development sectors in Mozambique (agriculture, water and tourism) which can be vehicles for information and knowledge dissemination and promotion.

It is important that SNV develops a program of intervention in agreement with plans from DNER and

FUNAE, and under the umbrella of the newly approved RE strategy (EDENR). The interventions here

recommended (Table 6) may constitute the skeleton of a full program of intervention for SNV in the

RE sector in Mozambique.

Table 6 – Recommended interventions for SNV in the RE sector

Code Type Short Description

QW1 Knowledge sharing Global Alliance for Clean Cookstoves

QW2 Knowledge sharing Energy for All Partnership (biogas)

QW3 Knowledge sharing Solar Lighting

QW4 Knowledge sharing RE applications in agriculture

QW5 Knowledge sharing RE applications in tourism

QW6 Value Chain Analysis Charcoal/ICS

QW7 Value Chain Analysis Brickets/cooking source

QW8 Value Chain Analysis Solar PV and entrepreneurship

QW9 Value Chain Analysis Jatropha production

ST1 Strategic interventions Cooking Solutions for Mozambique

ST2 Strategic interventions Mozambican RE Network

ST3 Strategic interventions The commercial production of Brickets

ST4 Strategic interventions Resource mapping

PT1 Partnerships Solar Water Pumps

PT2 Partnerships E3 (pico PV / solar lanterns)

PT3 Partnerships Soltrain (SWH)

PT4 Partnerships Clean Star (ethanol)

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SNV will only be able to participate effectively in the sector through a short to medium term

program of intervention, duly coordinated with the Ministry and FUNAE and with the main donor

agencies in the Mozambican RE sector. The EDENR identifies a few strategic actions of capacity and

institutional development, which will be the forefront of technology implementation programs. SNV

should clarify the extent and quality of its contributions beforehand, and establish reputation in the

field so that its interventions are incorporated in the planning for the development of the RE sector.

The following recommended interventions were evaluated in terms of their impact to SNV’s standing

in the RE sector (visibility) versus the speed/facility with which they may be implemented (Figure 7).

The nine quick wins recommended interventions are the highest impact, together with three

strategic and one partnership. One strategic and three partnerships have lower impacts, although

they are still important projects and good opportunities for SNV to intervene. The quick wins and

two partnerships (on ongoing projects) will be faster to implement, although this is not to say that

the other interventions cannot be carried out in the next five years; they may however extend

beyond this initial period of intervention.

Figure 7 – Impact of intervention for SNV x Speed of Intervention

Quick wins (QW)

QW1 to 5 are knowledge sharing experiences. The consultants propose SNV to organize learning /

sharing events where resource persons will participate and discuss on some specific topics. It is

suggested to invite some internal resources from other SNV countries, members of academia

(national and regional), implementing NGOs, governmental authorities, private sector and relevant

actors from the sector. There are five topics that we recommend to start with:

QW1: Global Alliance for Clean Cookstoves (http://cleancookstoves.org/)

SNV is a founding member of the international organization Global Alliance for Clean Cookstoves

(GACCS), to which seven African nations have already partnered. “The Alliance’s primary goal is to

work collectively with its partners to stimulate a thriving global market for clean cookstoves and

Speed +Speed -

Imp

act

+Im

pac

t –

QW1-5

QW6-9

PT2

PT1

PT3

PT4ST4

ST2

ST3

ST1

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fuels”. The Alliance is a public-private initiative to save lives, improve livelihoods, empower women,

and combat climate change by creating a thriving global market for clean and efficient household

cooking solutions, and was launched on September 21, 2010 with the help of some Founding

Partners. The experiences of GACCS can be very valuable to FUNAE and other Mozambican actors

because, in Mozambique, charcoal meets more than 70% of the residential cooking needs.

QW2: Energy for All Partnership (http://www.adb.org/Clean-Energy/energyforall-initiative.asp)

Energy for all Partnership is a working group on domestic biogas initiated by the Asian Development

Bank (ADB). It aims to promote the installation of an additional one million biogas plants in Asia by

2015/2016. By request of the ADB, SNV is leading this working group, which also aims to more

intensively learn from experiences in India and China. Although bio digestion in Mozambique is

incipient, more so because of the difficulty of collection cattle excrement from wide fields, it is a

proven technology for rural communities and of low cost. Mozambique has a particular problem of

“fecalismo a céu aberto” (open defecation). It may be worth exploring whether biodigesters can be

successfully associated with improved latrines and sanitation programs, through a public discussion

with the participation of development organizations, working with water supply and sanitation

programs, as well as those involved with cooking energy, and associations such as the “Associação

dos Amigos da Ilha de Moçambique” (Friends of Mozambique Island Association), they may have an

interest in the possible solution. Biodigesters should be built with local materials and for local

feedstock: SNV’s expertise in adaptation design, testing and community organization can be valuable

for the expansion of bio digestion technology in Mozambique

QW3: Solar lighting

Residential lighting is inadequate in the majority of African population. Networks such as Lighting

Africa (http://www.lightingafrica.org/), an initiative of the IFC and the World Bank, exist to mobilize

“the private sector to build sustainable markets to provide safe, affordable, and modern off-grid

lighting to 2.5 million people in Africa (…)“, using to solar lanterns (PV technology). Solar lanterns

have shown their technological and price-wise adequacy as lighting solutions for the poor - Lighting

Africa has already served almost 1 million in Africa, between 2007 and 2011. SNV can make a

valuable contribution, by bringing to Mozambique experiences, from East Africa and other parts of

the developing world, on the wide provision of solar lanterns for the poor. The discussion should

focus on sharing knowledge about the technologies, on issues of sustainability, associated with the

availability of spare parts, and on the best organization retail market fully run by the private sector.

QW4: RE applications in agriculture

Renewable Energy sources can have varied applications in agriculture and agro industries. In

Mozambique, applications such as water mills for grain, wind pumps for irrigation, solar for crop

drying and other agro technologies, can support local economic development of rural communities.

SNV should organize knowledge sharing and the discussion about the role that RE can have in

economic and social development, focusing on agricultural practices and the potential for the

adoption of RETs in agro industrial Mozambique.

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QW5: RE applications in tourism

Renewable Energy sources can have varied applications in tourism, and this is a growing economic

sector in Mozambique. The RE applications can contribute to a greener (tourism) sector, with the

potential for energy savings and access to green funds. Furthermore, tourism enterprises can be

micro poles of development in remote areas, and as such facilitate the adoption of RE solutions in

neighbouring communities and even the creation of new jobs (for example, in the retail of pico PV

systems and accessories). SNV should organize knowledge sharing and the discussion about the role

that RE can have in economic and social development, focusing on the energy needs of tourism

enterprises and the potential for the adoption of RETs in Mozambique.

QW6 to 9 entail Value Chain Analysis (VCA) for four RE sources: charcoal, brickets, solar PV and

jatropha. The intention of undertaking these VCA is to better understand the sector and these

particular resources, while collaborating with some specific partners who are interested in the

results (such as the DNER with Jatropha). Results of VCA will feed the strategic actions and

partnership interventions proposed below in this document. It is important to clarify that in the

QW8, when it is stated solar PV / entrepreneurship it means that it is not recommended to analyze

and draw the entire Value Chain (VC) of solar (from conception and building of infrastructure, to

final disposal of the equipment) but to analyze the sector and see the potential for entrepreneurship

and private sector to do their own business. Similar to what SNV is doing in the water program,

there are some business opportunities which are currently unexploited in the PV sector. It is

recommended to base the VC on those.

QW6: Value Chain Analysis of Charcoal and Improved Cookstoves and kilns (ICS)

Analyse the value chain of charcoal production, distribution and use, and identify where value can

be added or links strengthen towards a more sustainable use of the wood resource for domestic and

institutional cooking. This study will provide insights into current practices of forestry management

and their value in the chain, which can be of great use for the management of the forestry resource

in Mozambique. Aspects of efficiency and the manufacture of cookstoves and kilns must also be

prominent in the study, because charcoal is mostly used for cooking, residencies and institutional,

and in small food industries. SNV’s experience with VCA and with programs on ICS can be very

valuable for the on-going FUNAE/WB program on ICS in Mozambique.

QW7: Value Chain Analysis of Brickets as a cooking locally-produced source

Analyse the value chain of bricket production from charcoal and other organic residues, as an

alternative solution for cooking energy and differentiating brickets based on the type and sources of

residues. The study should also analyse opportunities and barriers for the commercial (private sector

based) production of brickets and for the manufacture of bricket presses, in Mozambique. SNV’s

experience with VCA and with market-based programs can be very valuable to the DNER’s pilot

project on establishing bricket production in Mozambique.

QW8: Value Chain Analysis of Solar PV technology and entrepreneurship

It will be a while before Mozambique is manufacturing solar PV technology from scratch, if ever.

Nevertheless, the many projects, on-going and planned, based on solar PV, from installations for

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electricity generation (in mini grid or standalone) to pico PV systems, will result in an ever wider use

of PV technology, which will require services of maintenance and the supply of spare parts for the PV

panels and accessories. These installations and devices will only be operational and durable, i.e. will

only effective solutions for electricity access, if sustainable market-based enterprises are established

and attractive for private sector participation. SNV can study the VC of solar PV, focusing on aspects

of sustainability, and as such contribute to the effectiveness of solar PV access programs in

Mozambique.

QW9: Value Chain Analysis of Jatropha production

Although Jatropha will be used for the production of bio-diesel for the transportation sector, i.e. its

energy component is well out the SNV’s scope of domestic and productive use of energy, the

Government of Mozambique has established as a priority the development of Jatropha (agricultural)

production and industrial processing; to this program, the DNER is called to participate. SNV has

experience with organizing farming communities to supply a single off-taker (the Emerging Farmers

project in Mozambique, the bio-oil project in Peru) and can support the RE sector through an all-

encompassing study on the Value Chain of Jatropha. SNV’s experience can help the RE sector in

Mozambique and at the same time establish, with a strategic partner such as DNER, a good working

relationship.

Strategic actions (ST)

The recommended strategic actions will be generally of medium term to implement, but constitute

important contributions to the development of the RE sector, in full alignment with the RE strategy

(EDENR). The first two interventions have strong components of knowledge brokering and

networking, and will make use of the results of the recommended quick-win interventions. SNV’s

skills on strengthening and developing market structures and local enterprises will be particularly

useful in the proposed ST3 (production of brickets) and ST4 (resource mapping).

ST1: Cooking Solutions for Mozambique

In the course of this study, at least four sources/ technologies for cooking were identified, namely

charcoal, brickets, biogas and ethanol. Funding agencies, such as the World Bank and GIZ for

charcoal based, and Clean Star and Danida for ethanol based, are involved in providing more

efficient cooking solutions for the Mozambican families. Often development projects focus only on

one or other technology, or on specific market developments, or on regulation and policy, but do

not integrate jointly into one program through which resources can be optimized. It is

recommended that SNV, because of its vast experience in ICS, bio digestion and solar technologies,

and with its focus on poverty alleviation and local development, establishes and develops a program

on Cooking Solutions for the Mozambican families. This program would integrate on-going efforts on

ICS and, based on the results of the VCA made for charcoal (QW6, see above), would determine and

help planning for geographically differentiated cooking solutions, detailed for efficiency and

technologies, safety and user acceptability, prices and markets, levels of complementarity and

substitutability with existing energy solutions, and finally, an evaluation of each cooking solution

regarding aspects of climate change and adaptation. This program would contain elements of study

and planning, of coordination between funding and implementation agencies, and of course, of

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structuring marketing and facilitation mechanisms to support a diverse offer of cooking solution

from emerging private sector / entrepreneurs to the Mozambican public. Through this program, a

portfolio of technologies could be made available and the Mozambican public would be able to

choose optimally depending on its specific socio-economic conditions and location. Through this

program, funding mechanisms could be structured to support entrepreneurship and the access to

clean cooking solutions, and to promote the participation of the private sector in a sustainable,

multiple, cooking resources and technology market in Mozambique.

ST2: The Mozambican Renewable Energy Network (MREN)

SNV should push for the establishment of a Renewable Energy Network in Mozambique (MREN), as

a platform of actors participating in the sector with the aim to exchange information and interact for

a better sector development, connecting different actors which either have renewable energy as a

business opportunity or can make extensive use of it to improve their development or productive

activities.

Two clear dimensions should make up this platform. The first would be composed of renewable

energy companies, organized into a Mozambican Association of Renewable Energy Companies

(MAREC), possibly as a chamber of existing CTA. The second would include non-governmental

organizations (NGOs) - the Mozambican Network of NGO’s for Renewable Energy. Additional

members can be donors and the government. The main aim of these initiatives would be to promote

the use of RE to spur the sustainable development besides providing the Mozambican market with

information which would help the development of RE sector, through sector policies and expansion

of activities of private sector, entrepreneurs, users and potential users of RE technologies.

Other objectives would be:

a) To promote, support and encourage the production of knowledge and the development of practical actions that would favour the use of renewable energy, contributing to sustainable energy development by strengthening socio-economic communities and the basic needs of the population, simultaneously with the preservation of the environment;

b) To encourage public policies that favour the use of renewable energy in MZ;

• Promote access to information and technical assistance in the area of renewable energy, by communities and organizations aimed at promoting the development of the poor population;

• Identify lines of national and international funding and support fundraising for projects;

• Promote, support and encourage research, innovation and experimentation in the area of renewable energy;

• Promote and encourage the exchange between individuals and institutions, public or private, at home and abroad;

• Encourage the coordination of various institutions working in the field of renewable energy in the country;

• Share knowledge, experiences and results with the use of renewable energy;

• Promote capacity building and training;

• Foster the expansion of entrepreneurship in the RE sector and consequent expansion of the market and competitiveness aiming more cost-effective prices and better quality;

• Promote the certification of equipment and products available in national market;

• Promote the design and implementation of economic incentives (e.g. tax exemptions, subsidies, and import promotion schemes) favoring investments in the sector.

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This intervention would be an application of the Multi Stakeholder Sector Development Approach to

Renewable Energy Industry, and can be guided by SNV’s experience in establishing The Maputo

Tourism Observatory.

ST3: The commercial production of Brickets

Experiences in other countries indicate that the production of brickets from residues of charcoal and

other organic material is commercially viable and an opportunity for small and medium enterprises

to develop. Brickets is also an alternative (cleaner) cooking source. The DNER started a pilot project

on brickets production and indicated their interest in this technology for Mozambique. SNV should,

based on results from the VCA on brickets (QW7) design a program that organizes a sustainable

residue collection from multiple sources, facilitates the establishment of small to medium

enterprises for bricket production, and of course, provides technical assistance to the

commercialization of brickets alongside with markets of cooking charcoal.

ST4: Mapping of renewable energy resources

The mapping of hydro and wind resources is made with data collected in reading stations, installed

in remote areas and operated by local residents duly trained and paid for (where remote sensing

and recording is not available). The readings must be regular and precise, and are collected into a

central database, managed by a governmental institution such as DNA (hydrology) and INAM

(rainfall, evaporation, wind resources). Solar radiation is usually mapped with accuracy from

satellite.

Members of the communities or local enterprises, hereby referred to as Community Mapping

Stations, can be formed to run professionally these reading stations, in a model similar to the

Inclusive Business, with the national meteorological institute operating as the “sole off taker” of the

product – in this case, data. These local enterprises (community-entrepreneur) will look at the

renewable resource (water, wind, solar) as an opportunity for income (job creation) and may,

consequently, have a sense of ownership (community-owner) and an interest in its preservation

(community-auditor).

SNV should develop with INAM a program of implementation of these Community Mapping Stations

thus contributing to the important strategic urgent activity of mapping the RE resources in

Mozambique, and at the same time using its experience to mount a sustainable scheme for data

collection, which is also an opportunity for new jobs in remote areas.

Partnerships (PT)

These interventions will make SNV partner of on-going or planned projects, identified in Appendix 4

and selected for their compliance with the criteria defined by SNV in their ToR (Appendix 8).

PT1: Logbooks and sustainability of solar water pumps

This intervention is shaped as the previously described opportunity for Capacity Building and

Institutional Development CB&ID3, in that it recommends that SNV develops the original logbooks

for its application in installations of solar PV water pumping, to be used in installations of FUNAE and

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other solar pumps. Furthermore, and based on the VCA for solar PV (QW8), SNV can provide training

and technical assistance to local entrepreneurs, for the provision of services of maintenance and the

supply of spare parts for the PV pumps and accessories, so that the continued operationality of the

solar pumps is ensured.

PT2: Pico PV and solar lanterns dissemination program

The project E3 will install a factory in Maputo and will require a nationwide network for the

commercialization of pico PV devices, and for maintenance services (including the supply of spare

parts and accessories). SNV can nurture these networks and make sure they are sustainable and

properly supported with technical assistance and facilities for credit. SNV can also support initiatives

marketing the pico PV devices, so their use is better understood by the target (the poor)

populations.

Of the various devices, solar lanterns have the higher impact on improving peoples’ lives; thus SNV

should focus its interventions in ensuring the wide dissemination of solar lanterns of competitive

prices and sustainable operation. In this way, its goal of contributing for better domestic lighting for

the poor can be realised.

PT3: Soltrain - expansion of the SWH in Mozambique

SNV can support the Soltrain project by offering support and technical assistance to potential

entrepreneurs established for the manufacture of Solar Water Heaters (SWH), using local

manufacturing resources and processes. Furthermore, SNV can also assist the development of this

technology in Mozambique through the marketing of SWH for urban and peri-urban hot water users,

residential, commercial and institutional (schools, hospitals, etc.).

PT4: Clean Star (CSMCB) ethanol program

Clean Star project has elements of the Emerging Farmers model (in the organization of farmers to

produce agricultural feeds for the ethanol production), and of Local Economic Development (in the

establishment of retail markets for ethanol and ethanol stoves, whose agents are themselves of the

poor extract of the population). Depending on negotiations with Clean Star Mozambique, SNV may

have in this project an opportunity to support the organization of the retail market of ethanol.

Final considerations

SNV has a great opportunity to contribute to the RE sector and impact in poverty alleviation and the

pro-poor development policies. The 17 actions here recommended, 9 quick wins, 4 strategic and 4

partnerships, will require commitment, funding and focus on their execution during the period 2011-

2015. They are a range of options that the consultants wanted to put to the service of SNV, who in

turn should make strategic decisions based on their available Human, Financial Resources and their

Strategy. Once this choice is made, SNV must yet develop a strategic plan for the sector, and later a

Planning, Monitoring and Evaluation Plan (PMO) for it, with its detailed intervention plans, with

costing and scheduling properly coordinated with the DNER, FUNAE and partners for the sector.

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It is recommended that SNV take the occasion of presenting and discussing this report to also

share its expertise on areas such as Improved Cookstoves (ICS), biodigesters and solar technologies,

with respondents, donors, government, academy, NGO’s and the public in general. For this purpose,

SNV should organize a presentation of its experiences with RE in other countries, bringing to Maputo

its specialists in these fields, followed then by the presentation of this report and a declaration of its

intention of contributing to the development of the RE sector.

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