Energy Law at Mozambique
Mozambique's energy legal framework is designed to promote sustainable development, attract investment, and ensure equitable access to energy resources. Here's an overview of the key laws and regulations shaping the energy sector in Mozambique:
⚡ Electricity Sector
Law No. 12/2022 (New Electricity Law)
Enacted on July 11, 2022, this law replaces the previous Law No. 21/97 and aims to modernize the electricity sector by:
Prioritizing renewable energy sources to align with sustainable development goals.
Establishing the Energy Regulatory Authority (ARENE) to oversee the sector.
Creating the National Electricity System Manager to ensure efficient operation and expansion of the national grid.
Regulating the assignment and termination of electricity concessions.
Exempting private projects for individual consumption from concession requirements.
Facilitating the development of hybrid electricity generation systems. (insights.afriwise.com, digital-client-solutions.hoganlovells.com, 360 Mozambique)
Regulations and Licensing
Complementing the New Electricity Law, several regulations govern the electricity sector:
Decree No. 60/2021 (Licensing Regulation): Outlines procedures for granting licenses for electricity facilities, including generation, transmission, and distribution.
Concession Awarding Regulation: Defines the legal framework for granting, controlling, and terminating electricity concessions.
Regulation on Tariff Regime for Renewable Energy: Establishes tariffs for renewable energy projects to encourage investment.
Renewable Energy Policy: Guides the development of new and renewable energy sources in Mozambique. (360 Mozambique, LOA Advogados Associados)
🔋 Renewable Energy
Mozambique's energy policy emphasizes the development of renewable energy to enhance energy access and sustainability:
Renewable Energy Policy: Encourages the use of renewable energy sources, especially in underdeveloped and remote areas.
Incentives for Renewable Energy Projects: Provides facilities and incentives, such as capital subsidies and simplified licensing procedures, to promote renewable energy initiatives. (Asia Pacific Energy Policy)
🛢️ Oil & Gas Sector
Hydrocarbon Law
Mozambique's Hydrocarbon Law regulates the exploration, development, and production of oil and gas resources:
Concessions and Contracts: Governs the granting of exploration and production rights through concessions and contracts.
Revenue Sharing: Establishes mechanisms for sharing revenues from hydrocarbon activities between the state and investors.
Environmental Protection: Imposes obligations on operators to mitigate environmental impacts.(LOA Advogados Associados)
Natural Gas Projects
Mozambique is home to significant natural gas reserves, particularly in the Rovuma Basin:
Area 1: Operated by TotalEnergies, Mitsui, and Empresa Nacional de Hidrocarbonetos (ENH).
Area 4: Developed by ExxonMobil, ENI, and CNPC.
Challenges: Projects have faced setbacks due to security concerns in the Cabo Delgado province, impacting the timeline for gas production. (mdradvogados.com, Financial Times)
🌍 Energy Access and Off-Grid Solutions
To address energy access challenges, particularly in rural areas:
Regulation for Energy Access in Off-Grid Areas (2021): Provides a framework for implementing off-grid electrification projects, aiming to attract private investment and achieve electrification goals by 2030.
ARENE's Role: Oversees and coordinates processes related to off-grid energy projects, ensuring alignment with national objectives. (Energypedia)
🏛️ Institutional Framework
Energy Regulatory Authority (ARENE): Regulates and supervises the energy sector, ensuring compliance with laws and promoting fair competition.
National Electricity System Manager: Responsible for the operation and expansion of the national electricity grid, including planning and market operations.
Ministry of Mineral Resources and Energy: Oversees the formulation and implementation of energy policies and strategies.
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