Mozambique launched its Renewable Energy Auction Programme (PROLER) in 2020 to lead Mozambique’s Renewable Energy growth through transparent and competitive auctions. Financed by the European Union and implemented under the auspices of the Mozambican Energy Regulatory Authority (ARENE), PROLER will create utility-scale solar and wind farms and introduce best practices in energy storage for grid stabilization and lead remote electrification initiatives.
Understanding PROLER and Its Initial Tenders
The PROLER Framework
- Launch & Objectives
- Launched in Oct 2020 with the goal to diversify Mozambique’s power mix and lower tariffs.
- Envisaged as competitive auctions for the award of concessions to independent power producers (IPPs).
- Stakeholder Roles
- ARENE is accountable for bidding terms, technical evaluation, and award of contracts.
- Electricidade de Moçambique (EDM) purchases generated power under long-term power-purchase agreements.
Major Projects Awarded
- Dondo Solar Power Station
- 40 MWp Beira solar power plant, tendered to TotalEnergies subsidiary Total Eren at $52.45/MWh.
- French Development Agency (AFD) and EU grant funding.
- Cuamba Off-Grid Hybrid Plant
- Solar and battery storage plant for rural electrification, with Energy Storage System Best Practices in stand-alone grids.
Integrating Energy Storage for Grid Resilience
Why Storage Matters
- Load Balancing & Peak Shaving
- Batteries store surplus midday sun power and feed it in during peak demand periods, reducing peak stress on the system and minimizing Mozambique’s Renewable Energy Integration challenges.
- Ancillary Services
- Frequency response and voltage regulation services improve industrial and urban customer power quality.
Best Practices for Energy Storage Deployment
- System Sizing & Modularity
- Size battery to local load profile; modular systems enable staged development.
- Standards & Interoperability
- Enhance vendor-to-vendor compatibility through the application of international standards (IEEE 1547, IEC 62619).
- Remote Monitoring & Maintenance
- IoT-based Energy Storage Monitoring Systems for predictive maintenance and performance optimization.
Mozambique Energy Market Players and Investment Trends
IPP Participation
- International players such as TotalEnergies, Enel Green Power, and Scatec Solar were winners from auctions, demonstrating high investor confidence.
- Local developers are motivated with capacity-building grants and also co-financing facilities.
Policy & Finance Enablers
- Tariff Guarantees make IPP projects bankable.
- Blended Finance from multilateral sources (World Bank, AFD) de-risks up-front investment, crowding in private sector flows.
Scaling Up Renewable Integration Nationwide
Technical Strategies
- Hybrid Plants of solar, wind, and storage hybrids solve resource intermittence.
- Microgrid Applicationsbring electrification to off-grid villages, complementing rural electrification plans.
Regulatory Roadmap
- Successive amendments to Mozambique’s Electricity Law will propel Mozambique Renewable Energy Integrationthrough simplified permitting and the enabling of wheeling transactions between producers and consumers.
Spinning Lessons for the Future
- Early success of PROLER highlights the importance of Energy Storage Best Practiceand competitive procurement in cost-competitive renewables delivery.
- With subsequent auctions, installation of large energy storage pieces will play a critical role in achieving 2030 universal access targets and long-term decarbonization targets.
