- Mozambique has the potential to transform its abundant energy resources into a driver of economic growth and improved living standards, according to the International Energy Agency’s (IEA) first-ever Energy Policy Review of Mozambique, released this week.
The report calls on the government to strengthen planning, coordination, and data systems while accelerating efforts to provide universal access to electricity and clean cooking solutions. These steps, the IEA says, will be essential to meeting the needs of Mozambique’s rapidly growing population and achieving its long-term development goals.
Currently, most of Mozambique’s electricity is generated from hydropower, while other renewable resources such as solar, wind, and biomass remain largely untapped. The IEA notes that expanding the use of these resources could drive industrialisation and clean energy exports, positioning Mozambique as a key player in global energy transitions.
The Energy Policy Review was launched in Maputo during the 5th Energy Seminar of the Community of Portuguese Language Countries (CPLP), held as part of CPLP Energy and Climate Week. The event also saw the release of the IEA’s National Climate Resilience Assessment for Mozambique, produced in collaboration with the Ministry of Mineral Resources and Energy.
IEA Deputy Executive Director Mary Burce Warlick, speaking via video message, highlighted Mozambique’s vast potential: “From natural gas reserves to hydropower, solar, and wind, the foundations are in place to build a modern, inclusive, and sustainable energy system. With the right partnerships, planning, and investment, Mozambique can turn its energy potential into lasting development gains.”
The report acknowledges Mozambique’s significant progress over the past decade, with the national electrification rate nearly doubling through grid expansion and off-grid solutions. However, it notes that more than half of the population still lacked access to electricity in 2022, and only 7% used modern cooking technologies.
To bridge these gaps, the IEA recommends scaling up mini-grids and standalone solar systems, especially in rural areas where they represent the most cost-effective access solutions. It also urges the government to strengthen the market environment for private investment, which remains heavily dependent on public funding.
Mozambique’s Energy Transition Strategy (ETE), approved in 2023, sets a vision to achieve universal, affordable, and reliable energy access by 2030. The strategy aims to harness the country’s diverse energy resources — including hydropower, solar, wind, biomass, and natural gas — to promote industrialisation and develop value chains for critical minerals.
However, the IEA cautions that the implementation of the ETE faces challenges, including high capital costs, limited financing, and infrastructure constraints. Although Mozambique has begun exporting liquefied natural gas (LNG), major projects have faced delays, and the expected economic benefits have yet to fully materialise. The creation of a new Sovereign Wealth Fund is expected to help manage future revenues from gas operations.
In addition, Mozambique has made notable progress in climate policy through initiatives such as the National Climate Change Adaptation and Mitigation Strategy (NCCAMS) and the National Adaptation Plan (NAP). The IEA’s National Climate Resilience Assessment recommends that Mozambique develop a detailed adaptation plan for the energy sector, assess climate risks to hydropower, and strengthen coordination through capacity-building and collaborative frameworks.
According to the IEA, with improved governance, targeted investment, and stronger institutional capacity, Mozambique can leverage its rich energy endowment to deliver inclusive growth and resilience in the face of climate change.
Link to the report HERE
Author: Bryan Groenendaal
