- Mozambique’s EDM Achieves 30 per cent Electricity Export Rate in 2022.
- EDM’s Annual Report Reveals Challenges Including Unbilled Electricity, Debt Collection Issues, and Limited Access to Cahora Bassa Hydroelectric Plant’s Capacity.
In 2022, approximately 30 per cent of the electricity produced by Mozambique’s state-owned electricity company, EDM, was exported to neighbouring countries. This aligned with the government’s goal to establish Mozambique as a regional energy hub. According to EDM’s annual report, the total electricity generated in 2022 reached 8,146 gigawatt-hours (GWh), a 6 per cent increase from the previous year. Out of this total, 1,730 GWh were exported to neighbouring nations, representing a 5 per cent increase from the previous year.
Most of EDM’s electricity exports go to other companies or consumers within the Southern African Development Community (SADC) region. These exports are covered by market agreements, constituting 27 per cent of the total electricity generated in 2022. EDM also attributes the export increase to the optimal utilisation of an additional 150 non-firm megawatts (MW) from the Cahora Bassa Hydroelectric Plant. This plant, located in the central province of Tete, optimizes power during periods of low national demand.
Regarding domestic demand, the total electricity bill in 2022 increased by 7 per cent compared to the previous year, reaching 6,350 GWh. However, this means that EDM did not bill for more than 20 per cent of the electricity it generated in 2022. The report states challenges impacting EDM’s operations, including significant debts owed by state institutions, difficulties in debt collection from the Ministry of Defence, and a lack of funds for maintenance equipment and meters. The company also faces issues with the poor recovery of retroactive energy debt, leading to a growing debt burden.
EDM notes that of the 2,075 MW of installed capacity at the Cahora Bassa Hydroelectric Plant, only 650 MW are available for the national market. This has necessitated the purchase of expensive power from Independent Energy Producers to meet the growing demand, which is expected to reach approximately 1,044 MW in 2022. It’s worth noting that EDM does not own Cahora Bassa but is a separate public company, with most of its generated power sold to South Africa.