Mozambique 275kV Substation Project - Cables and Conductors Supply

Project Information:

Project Name: Mozambique Ndzimbene 275kV Substation Project

Owner: Electricidade de Moçambique(EDM)

Awarded Date: 2023.01

What We Supplied:

33kV Power Cable 3x240mm2

33kV Power Cable Outdoor Termination

33kV Power Cable Cold Shrinkable Termination

AAAC Conductor 710mm2

AAAC Conductor 800, 921mm2

AAAC Conductor 400mm2

ACSR 160mm2

400V Power Cable 3x185+95mm2

400V Power Cable 5x10mm2

400V Power Cable 4mm2

Grounding Copper Strand 50mm2

Insulated Copper Strand 95mm2

Grounding Copper Strand 150mm2

Control Cable 12x2.5mm2

Project News:

Mozambique has the largest power generation potential of all Southern African countries. Power Africa estimates that it could generate 187 gigawatts of power from coal, hydro, gas, and wind. Most of the power currently generated is from hydroelectric projects, however, natural gas, and renewable energy sources will have a significant impact in the future, with natural gas expected to provide 44% of total energy generation in the next decade.

Despite Mozambique’s huge potential for generation capacity, only 34% of the population has access to electricity. This is due to an underdeveloped transmission and distribution network, lack of financing and the bureaucracy involved in developing new power projects. Near future energy demand will be driven by industry and business, as most of the population cannot afford current tariffs despite the fact, they are highly subsidized. To mitigate the cost of expanding the grid to rural areas, the Government of Mozambique has made rural electrification development a priority led by the Mozambique Energy Fund Institute (FUNAE), which focuses on smaller off-grid projects of less than 10MW.

Electricidade de Moçambique (EDM) is the sole electrical utility in the country. EDM sells power at a loss and had hoped to have a cost reflective tariff by the end of 2019. However, COVID-19 forced EDM to instead reduce its tariffs to sustain industry and business activities. EDM is also forced to subsidize tariffs to disadvantaged residential consumers, a strategy deemed unsustainable. According to national statistics a third of EDM’s customers, who are concentrated in Maputo and the surrounding province, generate 65% of EDM’s national revenue. Mozambique is a net exporter of energy to countries in the Southern African Power Pool (SAPP) - South Africa being the largest importer. EDM is making considerable structural and operational changes to finance its own generation projects especially in loss reductions. This transformation could bring major opportunities for U.S. companies that provide automation technologies and other ICT solutions.

The first Independent Power Projects (IPPs) in Mozambique came online in 2015. These projects have paved the way for future IPP negotiations and, more recently, the standardization of tendering documents. Given EDM’s weak financial capabilities, future IPPs will likely rely on development banks for financing. EDM and Mozambique support the development of renewable energy projects, having launched public tenders for solar and wind projects, the country is also exploring battery storage solutions.

The largest power generation plant in the country is the Cahora Bassa hydro dam, operated by the government-owned Hidroeléctrica de Cahora Bassa (HCB). HCB sells 65% of its existing generation to South Africa, and the remaining 35% is sold to the northern regions of Mozambique and to Zimbabwe. HCB’s operations are located on the Zambezi River in Tete Province.

Mozambique recently commissioned several gas thermal plants, the latest of which is in the capital commissioned in 2018 under a Power Purchase Agreement (PPA) with EDM. The Government also signed a PPA for a 420MW Combined Cycle Generation plant in 2021. According to BMI Research, gas-based generation is expected to increase by 18.1% annually through 2025. Mozambique’s first utility-scale solar power plant, a photovoltaic plant with a capacity of 40MW, was commissioned in Zambezia Province in 2019. There are numerous other renewable energy projects in development also expected to have significant growth over the next decade.

Mozambique has frequent power shortages mainly due to extreme weather events, forcing EDM to resort to expensive emergency power solutions. This creates another opportunity for U.S. companies providing emergency and backup generation solutions.