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  The Mozambican off-grid energy market gave a sign of great dynamism and growth potential reflected in the investment portfolio of the BRILHO program
29 of January 2021
The Mozambican off-grid energy market gave a sign of great dynamism and growth potential reflected in the investment portfolio of the BRILHO program
Javier Ayala

With the objective of boosting the off-grid market in Mozambique, promoting and supporting business initiatives that provide clean and accessible energy solutions to the population and companies, the BRILHO program launched, on February 12, 2020, its first call for proposals for business initiatives in Solar Home Systems, Green Mini-Grids and Improved Cooking Solutions.

BRILHO offers selected companies a unique mix of structured non-reimbursable funding (Catalytic Grants and Results Base Financing), up to £ 1.5 million (~ 2MUSD), specialised support, to de-risk business initiatives that aim to achieve competitive commercial returns and provide off-grid energy solutions.

Although the first call coincided with the beginning of the pandemic in Mozambique, the results achieved were highly positive, even exceeding expectations. This was also possible thanks to the various platforms that gave wide and continuous visibility to the call, highlighting in particular the support provided by ALER.

In a period of about 3 months, 64 business initiatives were submitted with the following technological division; 19% focused on green mini-grids, 38% on Solar Home Systems, 19% in Improved Cooking Solutions and 24% that propose a combination of these technologies. As a result of the first evaluation process, 29 initiatives were invited to develop and submit a proposal including a complete business plan. The investment approval process is carried out by an independent panel that has confirmed, so far, the selection of 15 business initiatives for contract signing. Currently, 10 companies have already signed a contract and started implementing it, and for the rest the process will be completed shortly. Mini-grid applications, taking into account regulatory requirements, will be completed and selected in the coming months.

BRILHO's current portfolio consists of a variety of initiatives profiled as follows:

  • Technology:
    • 60% SHS
    • 30% ICS
    • 10% SHS+ICS

  • Type of business initiatives:
    • 50% Existentes
    • 50% Novas

  • Geographical distribution:
    • Cabo Delgado – 2
    • Gaza – 4
    • Inhambane – 5
    • Manica – 5
    • Maputo – 4
    • Cidade de Maputo –4
    • Nampula – 5
    • Niassa – 3
    • Sofala – 5
    • Tete – 6
    • Zambézia – 4

 

The initiatives will be implemented over an average period of 2.5 years, with the potential to benefit thousands of Mozambican families and activate, through various small businesses, the local economy and industry. By the end of 2024, business initiatives, supported by the BRILHO program, are expected to provide 1.5 million Mozambicans and 15,000 local businesses with access to off-grid clean energy solutions.

The program will launch a new call for proposals in the second half of this year. Stay tuned!


BRILHO “We boost companies, we light lives!


Javier Ayala

BRILHO – Team Leader

SNV Country Sector Leader Energy



About BRILHO

BRILHO is a five-year program (2019-2024), funded by the British Government's Foreign, Commonwealth and Development Office (FCDO), as a contribution by the British people for Mozambique to achieve Sustainable Development Goal 7 (SDG7). BRILHO is implemented by SNV - Netherlands Development Organization.

The objective of the program is to encourage the private sector to focus its efforts, resources and innovative capacity to develop and invest in quality and accessible off-grid energy products, systems and services, in order to improve the lives of low-income people in Mozambique.

In order to achieve its goals in a sustainable and holistic way BRILHO commits its efforts through different components:

  1.  Market Development Fund: Invest in projects of companies operating in the off-grid energy subsector, through a combination of financing mechanisms;
  2.  Demand Activation: Create awareness among Mozambicans outside the grid about the options and benefits of available renewable energy solutions;
  3.  Research and Dissemination: Generate strategic information for decision makers in the public and private sectors;
  4.  Political Reform and Institutional Strengthening: Support the reform of the energy policy of the off-grid energy sub-sector and the establishment of an enabling environment for the growth of sub-sector operators.


For more information visit:

www.BrilhoMoz.com

www.gov.uk/government/organisations/foreign-commonwealth-development-office

www.snv.org