Making the most of Mozambique’s energy transition

September 1, 2024

Mark Marucchi, general manager of Schneider Electric Mozambique, talks to The Energy Year about why the company opened a branch in Mozambique and the distribution equipment the country will need for the energy transition. Schneider Electric is a global provider of energy management and automation solutions.

Why did Schneider Electric decide to open a new branch in Mozambique?
Mozambique represents an exciting new chapter, but also a familiar one. We’ve served the Mozambican economy for some time, but from a distance – through our Portuguese facilities or via South Africa.
Now we’re establishing a local presence. This reflects our belief in Mozambique’s immense potential. The recent surge in investment across various sectors, not just oil and gas, is truly inspiring. Just last year, when arriving in Catembe, I was struck by the skyline. I saw towering cranes building high-rises, which is a clear sign of development booming beyond resource extraction.
This vibrant energy across cities mirrors the nation’s overall growth. We at Schneider Electric are thrilled to be a part of it. We’re investing to set up a local entity and contribute our expertise in all sectors where power plays a role. We’re here to partner with Mozambique in building a brighter, more sustainable future.

What are the company’s operations in the country?
Schneider Electric is engaged in Mozambique’s dynamic energy sector, collaborating with key players such as TotalEnergies, EDF and EDM, the national electric utility. We are particularly involved in the gas sector, knowing the significant role it will play in the country’s transition towards a more diversified energy mix.
This transition presents both challenges and opportunities. Large-scale projects associated with the shift will require substantial power, and Schneider Electric is well-positioned to support this growing demand. Our long-standing presence in Mozambique is a key advantage.
Much of EDM’s existing network utilises Schneider Electric equipment, making us the ideal partner for network expansion. Our deep understanding of the local environment and existing infrastructure allows for the seamless integration of new solutions.
Schneider Electric’s commitment extends beyond simply supplying equipment. We are a trusted partner, collaborating closely with various stakeholders to ensure a smooth and successful energy transformation in Mozambique.

How important is the EcoStruxure Platform for clients in Mozambique?
Many existing businesses in Mozambique lack a comprehensive energy management system. Schneider Electric’s EcoStruxure solution addresses this gap, offering a powerful suite of tools. EcoStruxure provides businesses with unparalleled control across many aspects of their business including energy usage. It’s more than just efficiency – it empowers intelligent decision-making with real-time data allowing minute-by-minute adjustments, optimising energy consumption and reducing costs.
In today’s data-driven world, Schneider Electric understands the challenge of transforming vast amounts of information into actionable insights. EcoStruxure assists in data analyses translating into significant cost savings and a more sustainable future.
EcoStruxure also optimises the integration of solar, wind and existing hydro systems, ensuring smooth operation and a stable grid, EcoStruxure goes beyond managing inputs; it also optimises energy distribution, allowing for efficient and reliable power delivery throughout the entire network.
Our first deployment in the country is already operational in the gas sector, demonstrating our commitment to empowering businesses with intelligent solutions.

 

What opportunities do you see within the energy sector in the country?
We are excited about the changes unfolding in Mozambique’s energy sector. The traditional model dominated by state-owned power plants is giving way to a more distributed approach, opening the door for diverse energy sources, such as solar and wind, contributing to a nationwide network of distributed generation.

How can Schneider Electric leverage its international expertise in hydropower to support initiatives such as the Mphanda Nkuwa Hydropower Project?
The additional capacity from this new mega-project is a critical step towards a thriving economy with reliable and accessible power. Modern sectors such as banking and mobile communications rely heavily on data centres, which are inherently power-hungry.
This increased capacity from the new plant fuels economic growth by ensuring businesses have the power they need to operate and thrive. Furthermore, it provides a crucial confidence boost for investors, assuring them of a stable power supply for their ventures.
Besides supporting existing businesses, the new power plant paves the way for electrification across Mozambique. Areas currently lacking access to electricity will benefit from an expanding distribution network.

What are the main challenges in achieving Mozambique’s 2030 electrification goal, and how can Schneider Electric contribute to this ambition?
Schneider Electric recognises the critical challenge of distributing power effectively across such a large country as Mozambique. While increased generation capacity is vital, ensuring efficient delivery to all areas remains a significant hurdle.
Many regions lack access to electricity entirely, highlighting the need for infrastructure development while existing grids grapple with inefficiencies due to their age and require upgrades.
The current efforts to expand the distribution network are commendable and staying on this aspect is crucial to ensure that the power generated reaches the remote areas that don’t have access to energy today. Schneider Electric is the ideal partner for companies working to address these challenges, as our expertise in grid modernisation and distribution solutions can play a vital role in making electricity a reality for all citizens.

What’s your vision for the energy sector and Schneider Electric’s role in it in the years to come?
We share the excitement surrounding Mozambique’s energy sector in 2024. This year presents a pivotal opportunity for massive change and laying the groundwork for sustained growth with a focus on foundational areas, such as grid upgrades, which will lead to a more robust and efficient energy infrastructure.
While current challenges are temporarily slowing down some projects, the overall outlook remains positive and the progress made on existing projects so far is indicative of the defining years ahead for Mozambique’s energy sector.
Beyond the energy sector, Schneider Electric is impressed by the general sentiment of growth and anticipation across the entire country. Mozambique appears ready to embrace a period of significant economic expansion, with development evident in various sectors. This collective energy positions the nation for a positive and prosperous future in the coming years.

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