Energy transitions and low carbon development in Mozambique

Energy transitions and low carbon development in Mozambique

Energy transitions and low carbon development in Mozambique Marcus Power (Durham University) Maputo, March 19th 2015 About the project The Rising Powers, Clean Development and Low Carbon Transitions in Southern Africa: a 30 month project ending May 31st 2015, funded by the UKs Economic & Social Research Council (ESRC) how, why & to what extent China, India & Brazil are enabling the transition to low carbon energy systems in Southern Africa (case

studies of Mozambique & RSA)? assessing the consequent implications for the affordability, accessibility & sustainability of energy services in the region focus on three key processes: (1) investment (2) innovation (3) infrastructure development Project partners http://www.dogweb.dur.ac.uk/the-rising-powers/ Project methodology creation of a database of 150 low carbon

energy projects in Mozambique/South Africa 200 interviews undertaken in Mozambique, South Africa, China, India & Brazil (2012-14) Community-based participatory research in Maputo, Manica & Zambzia provinces how energy services & technologies are used/organised at the local level, how these technologies are affecting energy access, affordability & sustainability

The rising powers & South-South co-operation (Re)emergence of BRICs as shapers of international development The rise of the South, the growing significance of south-south development co-operation Plunder & Grabs: Primarily seen in terms of exploitative acquisition of natural resources (coal, oil & gas) This story overlooks simultaneous & growing involvement in clean energy technologies & in reconfiguring energy systems across Africa

The rising powers & energy transitions Brazil: global leader in the biofuels industry China: large hydro projects; worlds largest producer of wind turbines, PV, solar water heaters & small hydro, CCS technologies India: wind & solar South Africa: powerful investor within the Southern African region

The Rising Powers & clean energy China, India & Brazil increasingly including renewable energy projects as part of their aid, loan & investment portfolios in Africa The lure of government subsidies & feed-in tariffs in Africa, the domestic imperative to go out in search of foreign markets, renewable energy capacity in return for access to oil, coal, gas etc. Steady increase in 3 specific capacities: o as exporters of renewable energy equipment (e.g. wind turbines, solar panels, biofuels production technologies) o as investors in local equipment manufacturing (e.g. ethanol or solar water heater manufacturing plants)

o as financiers & builders of renewable energy generation (e.g. wind farms, HEP plants) Enabling low carbon development Low carbon development is a model of development that is based on climate-friendly low carbon energy and that follows principles of sustainable development, makes a contribution to avoiding dangerous climate change and adopts patterns of low carbon consumption and production (Urban and Nordensvrd, 2013: 5).

encompasses a complexity of stakeholders from the public, private, national/international & political & economic spheres Sustaining a high carbon regime in Mozambique? Mozambique as the worlds hottest new hydrocarbons frontier, as one of Africas leading emerging markets Mozambique courted by a range of international partners in recent years Declining dependence on foreign aid (57% in 2009 to 33.5% in 2014) The wealth generated by the extractives

boom as a unique opportunity for addressing sustainable energy access? Sustaining a high carbon regime in Mozambique? Availability of coal resources in Tete attracting mining companies: Vale (Brazil); Tata Steel; Jindal Steel & Power (JSPL); Coal India Ltd Indian firms (ONGC Videsh) & Chinese firms (China National Petroleum Corporation) have bought stakes in offshore gas Vale (Brazil) and Jindal (India) have invested in 300MW coal-fired power plants in Tete province

State Grid Corporation of China involved in the construction of new transmission facilities (CESUL), share in Cahora Bassa (through REN) Sustaining a high carbon regime in Mozambique? The Estratgia Nacional de Desenvolvimento (ENDE) sees the resource boom as a starting point from which to effect a shift in emphasis from poverty reduction to industrialisation The plan sees a number of transformative industries, including mining, the extractive industries & power generation in the vanguard of Mozambican modernization How equitable and sustainable will this development be? How

closely oriented toward the needs of Mozambicans? The extractivist mindset (Klein, 2014) of treating land & people as resources to deplete and exploit, the enclavic nature of extractive industries Investments in mining: leaving no one behind We have to be smarter [and] more targeted than we have been before. We are the owners of these [natural] resourcesWe must know how the mining industry is part of the package that will

improve the lives of millions of our peopleOtherwise we get left with big holes and no skills and no value chains (Graa Machel, speech to Alternative Mining Indaba, February 11th 2015) Whose energy needs? It is not a question of whether Mozambique has the capacity to produce energy, because we produce so much that it is likely that we can be nationally self-sufficient if we use all the

coal and hydro power domestically. It is a question of the fundamental orientation in generating power: to generate profit for transnational companies or to generate fuel for the Mozambican peoples needs? Diamantino Nhampossa, Unio Nacional de Camponeses (UNAC) (cited in Borras et al (2011) Sustaining a high carbon regime in Mozambique? Mozambiques energy sector secured 45.6% of all investments approved by the CPI in 2014, attracting over US$3.238

billion for just five projects including: Lupata & Boroma HEP in Tete, (Mauritius); ACWA Power Moatize thermoelectric plant in Tete (UAE), Buzi Thermal Power Plant in Sofala (Portugal) Civil society concerns about the socioecological implications of energy-related mega-projects (e.g. Mphanda-Nkuwa) A post-colonial amnesia (Isaacman, 2013)? Mozambiques energy system limited grid infrastructure focused on urban spaces &

oriented toward export to regional markets rapidly growing domestic demand for energy steady expansion of energy grid, but mainly to district centres & major towns limited infrastructure for distributing power centralized approach to electricity supply low (but rising) levels of access to electricity around 75% of population is off-grid approx. 80% of population using biomass dependence on large-scale hydro-power, only a few small & micro-hydro projects have been completed in recent years

Initial enthusiasm about biofuels but many projects have stalled Key database findings 92% of RE projects in Mozambique are rural in nature, variety of technologies used but solar PV is dominant (39%), most are off-grid (47%), almost half are projects are 1MW in scale amongst the rising powers India leads as project developer with 15% of projects, solar PV manufacturing plant in Beluluane Brazil with 3%, no formal presence as yet for China in clean energy sector (beyond import of Chinese solar systems & components) Other emerging economies (e.g. South Korea)

European donors remain significant actors in funding local/small-scale renewables (scope for trilateral co-operation?) Conclusions Increased RP interest in investing in renewable technologies & infrastructures Rising Powers actors are not the determining or dominant actor in any low carbon development sector investments are not explicitly driven by state-led South-South cooperation agendas or bilateral cooperation, variety of state/non-state & quasistate actors involved

Rising Powers pursuing a myriad of different energy developments, multi-national resource conglomerates playing a key role in coal & gas extraction, embedding high carbon pathways? Conclusions Embryonic attempts in Mozambique to diversify the energy mix, multiple & overlapping energy pathways unfolding Institutional strengthening & capacity development of the main public sector institutions (e.g. MoE, EdM, FUNAE) in order to improve their respective performance, governance & effectiveness Developing the capacity of the private sector (e.g. local enterprises and

NGOs working with renewable energy technologies), promoting market development Improving maintenance of RE technologies, the challenge of monitoring RE projects after implementation Focusing on facilitating & developing community-driven partnerships (rather than attracting foreign investors) Conclusions Renewable energy progress has been inconsistent and socially & spatially variable The limits to grid extension (a technical but also a highly political process), reducing losses/outages & improving energy efficiency

the need for small-scale, democratic & community-managed renewable energy systems the complex politics of ownership & community control over RE projects, the need for communities to have energy sovereignty Energy for whom and for what?

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