Beatrice Lang
Mozambique has been supplying South Africa with electricity for almost half a century. However, Mozambique plans to end this supply, which could have a detrimental impact on South Africa's economy and one of Africa's largest aluminium smelters. This decision has been made despite the fact that Mozambique exports 90% of its electricity, while many locals have no access to electricity.
| Characteristics | Values |
|---|---|
| Mozambique's plan to end hydropower supply to South Africa | Mozambique plans to end its 50-year supply of hydropower to South Africa, which could negatively impact South Africa's economy and Africa's second-largest aluminium smelter, Mozal. |
| Date of ending the contract | The contract is set to end on 31 December 2030. |
| Amount of electricity supplied | Mozambique supplies 1,150 megawatts of electricity to South Africa from its Cahora Bassa plant. |
| Mozambique's electricity access | Only 34% of Mozambique's population has access to electricity, with rural areas having particularly low access at 6%. |
| Mozambique's electricity grid | Mozambique's electricity grid is not linked nationally, which has caused challenges in supplying power directly to certain areas. |
| Mozambique's electricity exports | Mozambique exports 90% of its electricity to neighbouring countries. |
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What You'll Learn
- Mozambique's Cahora Bassa plant supplies South Africa with 1,150 megawatts of power
- Mozambique's grid isn't linked nationally, so South Africa buys power from Eskom
- Mozambique's electricity is cheap and clean, generated by hydropower
- Mozambique's unreliable electricity supply is too expensive for its impoverished households
- Mozambique's power supply to South Africa has been disrupted by violent storms
Mozambique's Cahora Bassa plant supplies South Africa with 1,150 megawatts of power
Mozambique has been supplying South Africa with electricity for almost half a century. However, in February 2024, Mozambique announced plans to end this supply, which will likely affect South Africa's economy and one of Africa's largest aluminium smelters, Mozal.
Mozambique's grid is not linked nationally, so Mozal, which is 63.7% owned by South32, cannot get a direct power supply from Cahora Bassa. Instead, 1,400 kilometres (870 miles) of transmission lines deliver power to Eskom in South Africa, which then sells power to Mozal. This sales arrangement has been in place since 1979.
Mozambique's decision to cut power supply to South Africa is part of its plan to secure the 1,150 megawatts of power from Cahora Bassa for its own use. The country aims to improve its electricity supply and boost industrialization. However, the decision presents a challenge for South Africa, which is already facing power cuts that hinder economic growth.
To address the power supply challenges, South Africa has sought alternative sources of electricity. In 2023, the country agreed to import 100 megawatts of electricity from Mozambique on a short-term basis, with an additional 600 megawatts to be supplied within six months. The initial 100 megawatts will come from the Nacala floating power plant, while the remaining 600 megawatts will be sourced from a floating power station in Maputo and a thermal power station in Ressano Garcia.
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Mozambique's grid isn't linked nationally, so South Africa buys power from Eskom
Mozambique has been supplying South Africa with electricity for almost half a century. However, Mozambique's grid isn't linked nationally, so South Africa does not buy power directly from Mozambique's Cahora Bassa plant, but from Eskom, a South African state-owned electricity utility.
The Cahora Bassa plant is Africa's third-biggest hydropower plant, producing 2.1GW of electricity. Since Mozambique's grid isn't unified, the electricity produced at Cahora Bassa is transmitted to Eskom via 1,400km of transmission lines. Eskom then sells the power to Mozal, South Africa's largest aluminium smelter, which is located near the capital, Maputo. This sales arrangement has been in place since 1979, when the Cahora Bassa plant's last turbine was completed.
Mozambique's electricity supply to South Africa has been unstable, with violent storms causing transmission lines to fall and worsening power cuts in South Africa. Despite this, the arrangement has been beneficial for both countries. Mozambique earns revenue from exporting its electricity, while South Africa secures its supply.
However, Mozambique plans to end its hydropower supply to Eskom by 2030, when its contract ends. This decision will impact South Africa's economy and the viability of the Mozal aluminium smelter, which requires about 900MW of electricity for its output. Mozambique aims to secure the 1.15GW of power from Cahora Bassa for its own use, as only 34%-to44% of its population has access to electricity.
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Mozambique's electricity is cheap and clean, generated by hydropower
Mozambique has been supplying electricity to South Africa for almost half a century. However, Mozambique plans to end this supply, posing challenges for South Africa's economy and energy supply. Mozambique's electricity is described as "cheap and clean", generated by hydropower.
Mozambique's Cahora Bassa plant currently provides 1,150 megawatts of power to South Africa. The plant is Africa's third-biggest for hydropower, with a capacity of about 2,185 megawatts. However, the bulk of the electricity produced in Mozambique is exported to neighbouring countries, while many locals have no access to electricity. Only 34% of the country's 32.8 million people have electricity.
Hydropower is the backbone of Africa's electricity supply, providing 40% of power in the Sub-Saharan region. Mozambique's hydropower potential is technically feasible, with an estimated capacity of 6,600 megawatts. The country has plans to build more than 3,400 megawatts of new hydropower facilities, most of them in the Zambezi River valley. The Mphanda Nkuwa hydropower project, valued at US$5 billion, aims to harness the Zambezi River's energy, generating 1,500 megawatts of power.
Mozambique's decision to repatriate the electricity generated by the Cahora Bassa plant for domestic use is part of its energy transition strategy. The country aims to improve its electricity supply and boost industrialization. However, this decision creates challenges for South Africa, which is already facing power cuts and economic growth concerns.
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Mozambique's unreliable electricity supply is too expensive for its impoverished households
Mozambique has been supplying South Africa with electricity for half a century. However, it plans to end this supply by 2030, as per its yet-to-be-published energy transition strategy. Mozambique intends to secure the 1.15GW of power it currently sells to South Africa from its Cahora Bassa plant for its own use.
Despite having the 14th-largest natural gas reserves in the world and a big hydropower-generating dam, Mozambique's electricity supply network is unreliable, with frequent power outages, brownouts, and load shedding. This is due to inadequate infrastructure, poor maintenance of power plants and transmission lines, and limited fuel supplies for backup power sources. The electricity supply is particularly unreliable in rural areas, where only 6% of the population has access to electricity.
The unstable and expensive power supply in Mozambique is also devastating small businesses. Since 95% of small businesses in the country rely on electricity, mostly from the national grid, to produce the goods they sell, an unreliable supply threatens business owners' ability to earn a living and creates jobs. Frequent power cuts also damage equipment and cause enterprises such as bakeries, poultry farms, and cement block factories to lose raw materials.
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Mozambique's power supply to South Africa has been disrupted by violent storms
Mozambique has long supplied South Africa with electricity, but this supply has been disrupted by violent storms in the past. In 2023, Mozambique agreed to supply South Africa with 100MW of electricity, followed by an additional 600MW within six months, to help the country tackle its power crisis. The bulk of electricity produced in Mozambique is exported to neighbouring countries, but many locals have no access to electricity. Only 34% of the country's 32.8 million people have access to electricity, and the supply is often unreliable and expensive.
Mozambique's largest power generation plant is the Hidroeléctrica de Cahora Bassa (HCB), which provides 60% of its power to South Africa's Eskom and 35% to the Zimbabwe Electricity Supply Authority (ZESA). Mozambique consumes the remaining 5%. HCB is Africa's third-biggest hydropower plant, and the electricity it produces is cheap and clean. However, Mozambique plans to end its hydropower supply to South Africa by 2030, securing the 1.15GW of power from the Cahora Bassa plant for its own use.
Mozambique's decision to end its hydropower supply to South Africa is expected to have significant implications for South Africa's economy and the viability of Africa's second-biggest aluminium smelter, Mozal. South32, which owns 63.7% of Mozal, requires about 900MW of electricity for its aluminium output, which it markets as being produced with clean energy. Due to Mozambique's lack of a unified electricity grid, Mozal cannot obtain direct power from Cahora Bassa and instead receives it via 1,400km of transmission lines from Eskom.
The impact of violent storms on Mozambique's power supply to South Africa highlights the challenges faced by the country in meeting its energy export commitments. Mozambique's energy infrastructure is vulnerable to disruptions caused by storms, and it remains to be seen how they will navigate these challenges in the future.
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Frequently asked questions
Yes, Mozambique supplies electricity to South Africa. In fact, in 2023, Mozambique agreed to supply 100MW of electricity to South Africa on a short-term deal to help the country tackle its power crisis.
Mozambique's largest power generation plant is the Hidro-eléctrica de Cahora Bassa (HCB), which provides 60% of its power to South Africa's Eskom. This amounts to 1,150 megawatts of power.
No, Mozambique plans to end its half-century-long supply of hydropower to South Africa. The contract is set to end on 31 December 2030.
