Consulting firm Deloitte predicts that Mozambique will become a crucial energy hub for southern Africa, driven by its vast gas reserves. According to the report “Africa Energy Outlook 2024, Mozambique Special Report”, the country has the potential to become one of the world’s top ten energy producers, accounting for 20% of the continent’s production by 2040.
The Mozambican energy sector is expanding, covering a wide range of renewable energies, such as biomass, hydro, solar and wind. Deloitte has analyzed the sector in depth, identifying trends that will shape the country’s energy mix over the next decade and recommending measures to strengthen its position as a regional energy hub.
In terms of fossil fuels, Mozambique has large reserves of gas and coal. Although it does not produce oil, it is a producer of condensed gas for export and is developing liquefied gas projects that will help reduce dependence on oil imports. The government is also promoting the production and use of biofuels, as well as the increasing use of gas-powered vehicles.
As far as coal is concerned, Mozambique has one of the largest reserves in the world, with the Moatize mine having proven reserves of 1.9 billion tons. The government plans to increase the installed capacity to 1.7 GW by 2042, guaranteeing an annual electricity production of 2 TWH. Despite the global trend towards abandoning coal, it can still play a crucial role in exports and in supplying domestic industries such as iron and steel.
In the natural gas sector, Mozambique has the largest reserves in sub-Saharan Africa, estimated at 180 trillion cubic feet. With projects such as PSA, Coral South and North (FLNG) and Mozambique LNG, production could double by 2030, making the country the third largest regional producer. In addition, natural gas emits 50% less carbon than oil and coal, making it increasingly sought after on the global market. Deloitte estimates that gas could generate 100 billion in revenue for the country.
In terms of renewable energy, Mozambique has one of the largest hydroelectric potentials in Africa, estimated at 12,500 MW. With major investments underway in Tete province, such as the Mphanda Nkuwa project and Cahora Bassa Norte, it is expected that installed capacity could reach 4539 MW by 2030, playing a central role in supplying electricity to neighboring countries.
Solar and wind power are expected to account for 20% of the country’s energy mix by 2040, with installed capacities of 266 MW and 40 MW by 2030, respectively. In solar energy, new plants are to be built in Mocuba and Meteoro, as well as Cuamba II in Niassa. In wind energy, new projects in Inhambane and Namaacha could generate an additional capacity of 170 MW.
As for biomass and other sources, Mozambique has great potential for biomass production, estimated at 2 GW. In addition, forestry waste can generate 750 GWh of energy. However, 95% of the Mozambican population still uses biomass, wood and coal as their main source of energy for domestic consumption.
Despite its vast energy resources, Mozambique faces significant challenges, such as poverty and a lack of access to energy. However, the country is well positioned to become a regional energy hub, provided it implements appropriate measures to harness its potential.
This news highlights the importance of the energy sector for Mozambique’s future and the need for investment and effective policies to ensure sustainable and inclusive development in the country.
