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Maputo, Mozambique – The U.S. Trade and Development Agency expanded its support for Mozambique's energy sector by funding two projects that will help deliver electricity to thousands of households through wind power and energy storage technology. The projects are among Mozambique's first utility-s
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Maputo, Mozambique – The U.S. Trade and Development Agency expanded its support for Mozambique''s energy sector by funding two projects that will help deliver electricity to thousands of households through wind power and energy storage technology. The projects are among Mozambique''s first utility-scale wind power plants – a large step in expanding the country''s electrification.

"USTDA''s assistance will support Mozambique''s efforts to tap into its abundant renewable energy resources. These projects are prime examples of how USTDA uses innovative technology to promote access to electricity and economic growth in its partner countries," said Todd Abrajano, USTDA''s Chief Operating Officer and Head of Agency. "Mozambique''s energy expansion will also create opportunities for American companies to supply quality infrastructure solutions that are built to last."

USTDA awarded a grant for a feasibility study to help Ventos de Inhambane, S.A. develop a wind power plant with energy storage near Praia da Rocha. U.S. firm Delphos International, Ltd. will undertake the study.

“The valuable support USTDA is providing will enable the advancement of the Inhambane Wind Farm. USTDA is helping Mozambique expand its renewable energy sector, while providing much needed clean power and sustainable investment for the growth of the region,” said Bernardo T. Fernandes, Managing Partner of Enventure Partners, LLC, the majority shareholder of Ventos de Inhambane, S.A.

USTDA also committed funding for a feasibility study to support Globeleq Calanga Wind, S.A., a subsidiary company of Globeleq, in the development of a two-phase wind power project with energy storage in the Manhiça district. The study will be performed by U.S. firm DNV GL Energy USA, Inc.

“We would like to thank USTDA for filling an early stage funding gap. The crucial role they are playing in the Manhiça wind project helps us accelerate renewable energy choices for the country," said Jonathan Hoffman, Chief Development Officer of Globeleq.

These projects support the Electrify Africa Act as well as the Prosper Africa, Power Africa, and Doing Business in Africa programs.

The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project preparation and partnership building activities that develop sustainable infrastructure and foster economic growth in partner countries.

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The new funding round supports productive-use-of-energy (PUE) providers across a range of fields, including agriculture, for example water pumping and irrigation, food processing and distribution, fishing and e-mobility. PUE solutions linked to mini-grids are also eligible.

Interested private sector companies with experience of scaling PUE solutions in Mozambique or elsewhere in Sub-Saharan Africa are invited to apply for funding under this new Call for Proposals (BGFA6). The main goal of the funding round is to enable local energy service providers to accelerate their business growth in Mozambique and to encourage international energy service providers to utilise the expertise and capacities of local market actors.

“We are very pleased to open our second funding round in Mozambique to support the scale-up of productive-use-of-energy solutions and cooperate with AMER to promote the call to local businesses. PUE solutions can provide broad socio-economic benefits for the population of Mozambique, including economic growth, income generation, job creation and often reduced workloads, allowing people time to undertake additional productive activities,” commentsTina Möller, Programme Managerat Nefco.

The total funding available is EUR 3.4 million and the indicative individual contract size per energy service provider is expected to be between EUR 1.0 and EUR 2.0 million. The new funding round is aimed at boosting energy access in rural and peri-urban areas, and as a result the municipality of Maputo and the municipality of Matola are excluded from BGFA6 financing.

“AMER is honoured to partner with BGFA to launch its new call in Mozambique. This collaboration aims to strengthen the ecosystem of productive use of energy solutions in our country, promoting sustainable development and generate lasting benefits for local businesses and communities. Our cooperation with BGFA builds on the success of our previous partnership with Nefco under the Modern Cooking Facility for Africa, which yielded positive results both in terms of information reach and applications to the call. We believe that this continued collaboration between BGFA and AMER is a true testament of AMER’s role in promoting the development of the renewable energy market and projects in Mozambique,” commentsRicardo Costa Pereira, President of AMER.

The new funding round is administered via a simplified, single-stage application process. The energy service providers that sign contracts will have access to limited, targeted technical assistance, as needed. Through the established Off-Grid Taskforce in Mozambique, involving both public and private stakeholders, the BGFA programme supports the development of local business environments that are conducive to the sale of off-grid energy services and that can provide sustainable development.

The funding round is open for applicants through an online application system. The application form will be available through the system latest at 15:00 Helsinki time (EEST) on10 July 2024. The application system will close for submissions of applications on13 September 2024 at 14:00(EEST).

Applicants are requested to send any questions regarding the call and application process through the online application system by 2 August 2024 at the latest. Answers will be published in a generic form and made available to all registered applicants in the application system on 9 August 2024. Please only post questions related to the BGFA6 funding round via the online application system’s support section, as specified in the Application Guidelines.

The evaluation of the received applications is expected to take place in September to October 2024 and invitations to the highest scoring applicants to proceed will be sent in November 2024.

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Sweden has diplomatic relations with almost all States in the world. It has embassies and consulates in around half of these. Sweden''s foreign representation consists of approximately 100 missions abroad and 350 honorary consulates.

REACT SSA (Renewable Energy and Adaption to Climate Change Technologies in Sub-Saharan Africa) is a Sida and AECF (Africa Enterprise Challenge Fund) funded programme with the aim to catalyze the access to low cost, high quality energy in poor households especially in rural areas in 9 Sub – Saharan countries. The agreement between Sida and AECF is expected to reach people outside of the grid through new business models to increase people''s living standards in Burkina Faso, Ethiopia, Kenya, Liberia, Mali, Mozambique, Sudan, Somalia and Zimbabwe.

In his launching speech of REACT SSA Mozambique, Mr Elofsson, Head of Cooperation at the Swedish Embassy, pointed out that 20 million people in Mozambique still lives without electricity, relying on energy sources such as kerosene and batteries that are harmful for both the environment and people''s lives. Mr Elofsson highlights the importance of electrification especially in poor rural areas, and that REACT SSA will help to improve the living standard for people in these areas, particularly women.

"As most of you know, Sweden is a long standing and strategic partner to Mozambique. In the energy sector, Sweden has for 40 years provided support with the aim to reach greater access to energy and contribute to the improvement of living conditions for poor people" – Mikael Elofsson

The five-year agreement between Sweden and AECF to fund REACT SSA was signed in November 2017 in Nairobi, Kenya. The programme is now officially launched in Mozambique and the competition is open for applications.

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Empirical evidence has been provided—in the context of "Boa_Ma_Nhã, Maputo!" project—thanks to the discussion with local farmers and researchers, as well as direct observation of farming activities in Boane and Namaacha. Interviews included members of the 25 de Septembro cooperative in Boane and colleagues from the Sabie Agricultural Research Centre, Department of Agronomy and Forestry Engineering of the Mondlane University.

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