A trusted advocate for renewables in Mozambique

September 9, 2024

Ricardo Costa Pereira, founder and president of the Mozambican Renewable Energy Association (AMER), talks to The Energy Year about rallying support and resources for renewables initiatives in Mozambique and exciting prospects for domestic biomass generation and carbon trading. AMER is a non-profit association that aims to promote renewable energies in Mozambique.

What is AMER’s role in shaping Mozambique’s renewable energy landscape?
AMER emerged in 2017 to satisfy the need for a central platform for sharing information in the renewable energy sector. The sector was vastly different back then, and AMER envisioned a collaborative environment where companies could channel their concerns to the government through a unified platform. This helped streamline communication and fostered clarity among stakeholders, avoiding duplication of work already carried out by international donors.
We also set out to rigorously collect and analyse data to produce reliable information. This led to the creation of one of the most comprehensive reports on the sector, which helped establish consensus around key metrics such as electrification rates and the share of renewables in the energy mix. We’ve continued to produce an annual summary report, effectively pulling information out of silos and into the public domain.
AMER’s core mission from the outset has been to democratise access to information, ensuring transparency and alignment within the sector. We’ve evolved to become a key partner for the government, representing the voices of over 100 member companies in the renewable energy space. We’re proud to have earned recognition for our contributions.
AMER played a crucial role in providing input from the private sector during recent revisions of the electricity law and off-grid regulations. We serve as a bridge between the private sector and the government, ensuring private-sector concerns are heard during policy and strategy planning stages. In turn, the private sector views AMER as a trusted advocate for their interests.
We enjoy a direct line of communication with the UIPCE [Integrated Unit for Planning and Coordination of Electrification] at the Ministry of Mineral Resources and Energy, which solidifies AMER’s position as the official voice for the renewable energy sector.

How will the government’s USD 80-billion energy transition plan impact AMER’s operations?
AMER is cautiously optimistic about Mozambique’s ambitious goal of achieving universal energy access by 2030. The recently released national energy transition strategy outlines a bold vision, but how plans translate into action remains to be seen. Financial resources for renewables projects have grown steadily, with nearly USD 230 million available in 2023. However, the estimated required amount is much larger.
The focus for AMER is ensuring electricity reaches all Mozambicans. While the pipeline of on-grid solar, wind and battery projects is promising, the true challenge lies in deploying and maintaining infrastructure across Mozambique’s vast territory. Decentralised renewable generation is essential for remote areas where grid extensions are impractical.
AMER recognises the importance of adapting. Addressing climate change will be crucial for Mozambique’s resilience, and renewable energy will play a key role in this equation. AMER is evolving its focus to encompass not only technology but also climate considerations to ensure a sustainable future for Mozambique.

 

What are some of the private sector’s key concerns regarding energy supply in Mozambique?
AMER’s membership has grown significantly over the past few years, and the increase reflects the private sector’s growing optimism about Mozambique’s renewable energy potential. Unlike other markets in sub-Saharan Africa, Mozambique offers untapped resources with clear regulations and a growing demand for clean energy.
Mozambique’s renewable energy sector is young and we prioritise initiatives that build capabilities. The association has established a talent platform that connects skilled university graduates with job opportunities in the renewables sector, helping to cultivate a workforce that is equipped to lead the development and implementation of renewable energy projects across Mozambique.
AMER adjusts its membership fees and benefits to companies of all sizes, and one of the key advantages to joining is access to AMER Connect, a networking platform that facilitates dialogue among local and international companies. AMER also provides valuable information to its members, keeping them abreast of industry developments and opportunities. A recent example is a grant programme for improved cooking solutions, where AMER’s outreach significantly increased participation.

How does AMER decide its involvement in national projects?
The role of AMER is to advocate for renewables in the current and future energy project pipeline. To do so, we deploy various engagement strategies, such as RenMoz, the largest renewable energy conference in the country, in partnership with the Government of Mozambique to create platforms for dialogue platform.
AMER assists companies, particularly international players, by connecting them with relevant tenders and qualified local partners and our close collaboration with both EDM, the national utility company and FUNAE, Mozambique’s energy fund, allows AMER to serve as a bridge and leverage private-sector expertise for project implementation, allowing the government to focus on its broader strategy.
AMER also co-organises the biannual Off-Grid Energy Forum with the Ministry of Mineral Resources and Energy. This forum brings together stakeholders to discuss strategies, identify priority areas and address topics in off-grid sectors, such as solar home systems, improved cooking solutions and mini-grids.
Our goal is that stakeholders are aligned in achieving Mozambique’s renewable energy goals, and some of our members are already driving large-scale renewable energy projects in the country. However, the association is also aware of the need for transformation within the sector.
Companies such as TotalEnergies are transitioning to embrace renewable energy alongside traditional oil and gas operations. AMER believes they have valuable expertise to contribute and we extend them our invitation for membership, as we do to other international companies such as Eni and ExxonMobil who are also expanding their portfolios into alternative energy sources.
By welcoming these industry giants, AMER aims to further strengthen collaboration and accelerate progress towards Mozambique’s renewable energy goals.

What future projects are in sight for AMER?
While Mozambique has a long history of utilising biomass, current practices are often unsustainable. AMER acknowledges the challenge of overcoming cultural preferences but sees immense potential in transitioning to a more sustainable biomass model. Companies employing biomass as fuel are exploring alternative uses for biofuels, with growing interest from entities such as Puma Energy and others in the aviation industry.
A key advantage of sustainable biomass is the creation of carbon pools. These pools can generate income for stakeholders while ensuring environmental responsibility. This aligns with the growing interest in carbon markets worldwide, and AMER is collaborating with the Ministry of Economy and Finance to conduct private-sector consultation for on-grid and off-grid regulations for carbon trading in Mozambique.
AMER views the intersection of sustainable biomass practices and carbon markets as a highly exciting area for growth within Mozambique’s renewable energy sector.

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