Emmett Costel, Secretary General, Mozambican Renewable Energy Association (AMER)

• Interview

What is the role of AMER in the energy sector?

The proposal to establish a Mozambican association of private-sector players in the renewable energy space, initiated in 2017, was solidified in early 2020, having gathered the necessary financing for its operations. With over 200 registered companies and professionals and a growing base of paying members, we are working on cultivating a critical mass of members and supporting collaborators. AMER is currently building a network of partnerships with internationally recognized business networks and associations, including the Lusophone Renewable Energy Association (ALER), the Global Off-Grid Lighting Association (GOGLA), the Alliance for Rural Electrification (ARE), SolarPower Europe, and others to enhance AMER’s service delivery for member companies and bring international best-practice to its members. The exchange and collaboration with international business associations has been facilitated by GET.invest, a program to mobilize renewable energy investments, supported by the EU. AMER is working on a number of initiatives engaging the government and advancing the interests of the renewable energy sector. The key priorities of our 2020 agenda is the parliamentary approval of the proposal for the revision of the 1997 electricity law and sector specific fiscal incentives. To achieve these objectives, AMER is developing a renewable energy program strategy targeting both government and private-sector stakeholders. We have adjusted this program to meet the challenges presented by the COVID-19 partial lockdown in Mozambique. In this context, we have an engagement strategy to promote discussion on these initiatives with the government directly and through webinars in a discussion on the involvement of the energy sector in the crisis, since electricity supply is considered an essential service and is thus exempt from lockdown measures.

What are the priorities from a regulatory perspective?

2020 is an exciting year for regulation in the green economy. We are discussing core legislative issues revolving around the definition of different subsectors under the electricity law. The priority for us is the simplification of and having a clear process for the licensing regime for power generation systems under 4MW and the liberalization of the market for increased private-sector participation for both onand off-grid investments. After this, there is a great deal of work to do in terms of developing the regulatory framework for incubating private-sector investment in the sector. On the legislative side, the next two to three years will be great for the off-grid space. The issue of tariffs, specifically cost recovery-based tariffs, will be key to the private sector’s entry into electricity supply. This is a key conversation to be led by the evolving role of the Energy Regulatory Authority (ARENE).

How would you rate private involvement in the renewable energy sector in Mozambique?

Thanks to the increased attention from donors, we are seeing significant movement and support in the renewable space. Donor-led program initiatives have fostered new opportunities for private-sector engagement. This represents an unprecedented opportunity for Mozambique to develop its energy sector in a sustainable way and to meet the SDG7 goal of universal access for the some 90% of rural households who currently lack access. The PAYGO space has rapidly become an extremely diverse and growing sector with various actors in it. On the on-grid space, there are a few projects already ongoing which have been developed in direct participation with the public utility, Electricity of Mozambique (EDM). The future of the renewable energy on-grid sector looks exciting though. Finally, while the mini-grid off-grid space is in a nascent state, there are some interesting initiatives also funded by the World Bank and donor community which are being implemented in direct partnership with the Mozambican National Energy Fund (FUNAE). Overall, we are seeing decisive progress in opening the space to the involvement of the private sector. The establishment of ARENE with responsibility for both the tender process and tariff setting is part of this transition, and concrete steps are being made in the right direction. ✖