BRILHO – Energy Africa Mozambique

Dear Readers,

Responding to ALER’s kind invitation I am pleased to introduce DFID’s new off-grid energy programme in Mozambique called BRILHO – Energy Africa Mozambique. We are now starting the process to procure a team to implement this 5-year programme and I invite you to contribute to its success.

The BRILHO programme aims to improve access to energy for rural households and businesses. It will encourage private sector innovation and investment, resulting in growth in the market for: improved cookstoves (also in urban and peri-urban areas); solar household systems; and larger systems (covering the spectrum up to and including mini-grids) able to support productive energy use.

The four components of BRILHO are:

Market Development Fund (MDF) and Technical Assistance (TA): Via an open competition, start-up grants will be available to new businesses, seeding innovation and supporting early stage market work. Working capital loans will help established and emerging firms to access the capital they need to grow to attract commercial debt. Financial support will be accompanied by TA for: legal and technical advice; collecting market information; matchmaking with local supply chain partners; and helping to refine technology and business models that meet Mozambique’s needs.
Demand Activation: Engagement with rural consumers will educate them on the benefits of modern energy solutions, as well as mobile money and the pay as you go (PAYG) payment mechanisms. At the same time, private sector suppliers will be assisted in making their products available to ensure customer engagement can result in the purchase of improved energy systems.
Research and Dissemination: Research will fill gaps in the evidence base, particularly regarding adaptation of successful and emerging East African business models and experience appropriate to the Mozambican context.
Policy Reform and Institutional Strengthening: BRILHO will support the policy reform process through the development of the Energy Africa Compact. It will also strengthen the capacity of all stakeholders, especially by providing technical assistance (TA) to the Mozambican government’s energy institutions. The Energy Fund (FUNAE), responsible for rural energy, will receive most support given plans to handover residual BRILHO activities to FUNAE in 2022.

The contract for the implementing team of this programme is anticipated to start around March 2017 and span a period of 5 years.

Indicative results that are expected through BRILHO are:

1 million people benefitting from improved cook stoves (ICS).
1 million people benefitting from solar home systems (SHS) or mini-grids for domestic use.
20,000 additional businesses supplied with off-grid renewable productive energy.
£30m of additional private funding mobilised for BRILHO interventions.

I would like to invite you to an Early Market Engagement Event that will take place on the 6th October 2016 from 13:30 to 15:30 Mozambique time / 12:30 to 14:30 UK time.

The intention of the Early Market Engagement event is to allow DFID to give the market a fuller understanding of the upcoming programme. We encourage suppliers attending to give their thoughts on the programme and if through their experience, they can add anything to the Terms of Reference, we will gratefully consider suggestions. There will also be opportunity for suppliers to ask questions based on the information we will provide on the day.

For those interested in attending the event (either in person at the DFID office in Maputo or via conference call) please confirm with Alistair Stevenson of DFID’s procurement department: Alistair-Stevenson@dfid.gsx.gov.uk

I hope we can count on your attendance and support!

Phil Outram

Infrastructure Adviser at DFID