Challenges Faced by Mozambique Electricity Supply Company
Mozambique's Electricidade de Moçambique (EDM) is dealing with challenges in providing affordable and reliable electricity services to residential customers. Issues include reliability, affordability, and sustainability concerns due to various factors such as infrastructure limitations and power outages.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Are Assessing Mozambique Electricity Supply Company (Electricidade de Mo ambique EDM) challenges to provide affordable and reliable services to residential customers cost-reflective tariffs the solution? Daniela Salite (Presenter) Joshua Kirshner Matthew Cotton 05 February 2020
Introduction Electricity is considered one of the top priorities for both social and economic development in Mozambique; Mozambique has made significant strides in expanding electricity access from 6% in 2006 to 32% in 2019; Mozambique is planning to achieve 50% access to electricity in 2023 and universal access by 2030;
Introduction (Cont.) EDM has been registering an average annual increase in power consumption of 6 to 8 %; Electricity reliability, affordability, and sustainability remain a challenge.
Electricity reliability Mozambique has oscillations and load issues: - Old and overloaded infrastructures; - Electricity supply shortages; - Lack of or insufficient technical staff/financial health; - Erratic weather events; - Clandestine power connections; - Vandalism; 2015: over 1700 power outages in Maputo city, with an average transmission interruption of 1 hour; frequent power outages,
Electricity reliability (cont.) Fig 1:Load index of critical transformers (left) and distribution lines (right) in Maputo and Matola cities (source: EDM) 133 132 140 140 126 122 122 116 122 122 121 110 117 120 102 101 120 98 98 Load Index (%) 90 89 100 95 100 80 Load Index (%) 60 80 40 60 20 40 0 20 0 DL1 DL2 DL3 DL4 DL7 DL10 DL14 Substation Grid element
Electricity reliability (Cont.) I have a three-phase connection but I never have the recommended voltage (220kV). Because of that, I always have to keep a rag on the floor of my kitchen to soak the water from the fridge since it is always defrosting. This all happens because the expansion of electricity was not accompanied by improvement in quality (interview EDM staff, december 2019).
Electricity affordability EDM has a growing debt (upwards of US$1 billion) with suppliers: - Selling power at a loss; - Buying 30% of its total energy needs with the IPPs at 3 to 4 times higher than with HCB; - Debts of electricity bills by governmental institutions of around 280 million meticais (US$4.8 million).
Electricity affordability/ Sustainability (Cont.) Table 1: Electricity tariffs applied by energy suppliers in Mozambique (source: Nhamire and Mosca, 2015) Energy Supplier Applied Tariff (USc/kwh) HCB 3.6 Central Termica de Ressano Garcia 8.5 (CTRG) Gigawatts 9.47 Aggreko 12.2 14.8 ESKOM 30
Electricity affordability/ Sustainability (Cont.) EDM proposed solution: Cost-reflective tariffs to ensure their financial balance to invest in maintenance, operation and quality services; Since 2015, tariffs increased on average of 118.6%, but still not cost reflective yet; Consumers are struggling to afford the high tariffs.
Electricity affordability/ Sustainability (Cont.) Fig 1:Tariff increase from 2013 2019 by level of consumption (left) and tariff increase scenario 2018 2027 (right) (source: EDM) 12 9.85 9.39 10 Applied tariffs (Mts/kWh) 8.44 8 6.63 6 4.38 4.17 3.75 3.71 3.53 4 3.27 3.18 3.11 2.98 2.95 2.5 2.34 2 1.07 1.07 1.07 1.07 0 0 125 0 300 301 - 500 More than 500 Pre-paid Level of consumption (kWh) 2013 2014 2015 2019
Electricity affordability/ Sustainability (Cont.) The public integrity centre (CIP) recommends: The removal of some of the costs that are part of the electricity price structure that should not be charged to consumers; The state to pay EDM its debts in electricity bills to prevent the debts from being indirectly transferred to the citizen; EDM to renegotiate contracts with the IPPs;
Electricity affordability/ Sustainability (Cont.) Look for alternative sources of electricity generation to provide cheaper energy. The energy regulatory authority to start exercising its powers and responsibilities; Consumers proposed solutions: - Change of electricity meters; - Market liberalization; - Existence of an operational Energy Regulatory Authority;
WHAT ARE THE SOLUTIONS FOR THE PROVISION OF RELIABLE AND AFFORDABLE ELECTRICITY SERVICE?
References Arthur, F.; Cockerill, A. (2019). "The roles of government and the public utility in achieving universal access to electricity." Economics of energy & environmental policy 8 (1); EDM (2013). Relatorio anual de estatisticas de 2013. EDM (2014). Relatorio anual de estatisticas de 2014. EDM (2015). Relatorio anual de estatisticas de 2015. EDM (2018a). EDM strategy 2018 2028. EDM (2018b). Integrated master plan Mozambique power system development: final report. EDM (2018c). Electricity tariffs. Nhamire, B.; Mapisse, I.; Fael, B. (2019). Corrup o e m s pr ticas nos sectores dos combust veis e de energia el ctrica - seus efeitos para o or amento das fam lias mo ambicanas.
Thank You OBRIGADO
