Mozambique has vast renewable energy (RE) resources that can play an important role in the process of development of the country. Mozambique is well endowed with resources, but lacks national skills, financing and incentives, as well as diversified suppliers for rapid internal development of this potential. The role of external funding and technical assistance will thus remain important for many years to come for the successful development and modernization of the energy sector.
Just as with the other Southern African Development Community (SADC) countries, Mozambique faces severe and interrelated problems of energy and environment linked with the massive consumption of fuel wood biomass The conventional power grid provides less than 10% of the energy needs for the country’s 22 million inhabitants . The electrification rate is estimated at 20% of urban areas and 1-2% of rural areas. About 85% of the energy consumed in the country comes from biomass.