Wiktor Wise
Mozambique has been supplying South Africa with electricity for almost half a century. However, in February 2024, Mozambique announced plans to end its hydroelectric power supply to South Africa, which could have significant implications for South Africa's economy and energy security. Mozambique's decision to repatriate the electricity currently exported to South Africa highlights the complexities of energy dependence and the challenges faced by both countries in ensuring stable and sustainable power supplies.
| Characteristics | Values |
|---|---|
| Mozambique's plan to end hydropower supply to South Africa | Mozambique plans to end its half-century-old hydropower supply to South Africa, which could negatively impact South Africa's economy and Africa's second-largest aluminium smelter, Mozal. |
| Current supply arrangement | Mozambique's Cahora Bassa plant, Africa's third-largest hydropower producer, currently supplies 1,150 megawatts of electricity to South Africa. |
| Supply issues | Mozambique's electricity supply is unstable, with frequent power cuts affecting small businesses and locals. |
| Impact on South Africa | South Africa is facing power cuts that are hindering economic growth, and the end of the hydropower supply from Mozambique will further exacerbate this issue. |
| Alternatives for South Africa | South Africa is exploring ring-fencing power from its sole nuclear plant for the Hillside aluminium smelter. |
| Mozambique's rationale | Mozambique seeks to secure the electricity generated by the Cahora Bassa plant for its own use and improve its economic development. |
| Future prospects | Mozambique is working on several energy production projects, such as the Temane thermal power station and the Mpanda Nkuwa hydroelectric project, to boost its electricity supply. |
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What You'll Learn
Mozambique plans to end its 50-year hydropower supply to South Africa
Mozambique has recently announced its plans to end its 50-year hydropower supply to South Africa, a deal that has been in place since 1979. The country intends to secure the 1,150 megawatts of power it currently sells to South Africa from its Cahora Bassa plant for its own use. This decision is detailed in Mozambique's yet-to-be-published energy transition strategy and is set to impact South Africa's economy and the viability of Africa's second-biggest aluminium smelter, Mozal.
Mozambique's Cahora Bassa plant is Africa's third-biggest hydropower plant, generating 2,075 megawatts of electricity. Despite this significant generation, only 34%-44% of Mozambique's population has access to electricity, with frequent power cuts disrupting businesses and daily life. The country exports 90% of its electricity, leaving small businesses facing power outages and higher expenses.
South Africa, on the other hand, is facing its own power crisis, with state electricity utility Eskom implementing rolling blackouts, leaving households without power for up to 10 hours daily. To mitigate this, South Africa turned to Mozambique for additional power supply in 2023, agreeing to a short-term deal for 100 megawatts of electricity, with a further 600 megawatts to follow within six months.
Mozambique's decision to end its hydropower supply to South Africa is driven by its priority to repatriate electricity for domestic use. However, it presents a challenge for South Africa, which relies on this power source. Eskom has formed a working group with HCB and the Mozambican government to explore extending the contract, acknowledging the lack of viable alternative suppliers of renewable energy at a comparable scale.
The impact of this decision extends beyond energy security, threatening the operations of Africa's second-biggest aluminium smelter, Mozal. While Mozal purchases power from Eskom, which primarily produces electricity from coal, there is no guarantee that it is the same electricity originating from Cahora Bassa. The smelter, majority-owned by South32, requires about 900 megawatts of electricity for its aluminium output, marketed as being produced with clean energy.
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Mozambique's Cahora Bassa plant supplies 1.15GW of power to South Africa
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 impact South Africa's economy and Africa's second-biggest aluminium smelter, Mozal.
Mozambique's Cahora Bassa plant currently provides 1,150 megawatts (1.15GW) of power to South Africa. Cahora Bassa is the country's largest power generation plant and Africa's third-biggest hydropower plant, with a capacity of 2,075 megawatts. The plant sends electricity along 1,400 kilometres of transmission lines to Eskom in South Africa, which then sells power to Mozal.
Mozambique's decision to end the power supply to South Africa is part of its energy transition strategy. The country aims to secure the power currently sold to South Africa for its own use, improving its electricity supply. Mozambique exports 90% of its electricity, leaving many locals and small businesses without access to power or facing frequent power cuts.
The end of the power supply agreement between Mozambique and South Africa is planned for 31 December 2030, when the current contract ends. However, this decision creates challenges for South Africa, which is already facing power cuts that impact its economic growth.
To mitigate the impact of losing the power supply from Mozambique, South Africa is exploring alternative energy sources. South32, the majority owner of Mozal, has proposed ring-fencing power from South Africa's nuclear plant for its Hillside aluminium smelter. Additionally, South Africa has sought short-term power supply agreements with Mozambique to address its ongoing power crisis, with the neighbouring country agreeing to supply an additional 700 megawatts of electricity.
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Mozambique's unreliable electricity supply
Mozambique has an unreliable electricity supply within its own country, despite being a resource-rich energy hub. Only 44% of the population has access to electricity, with 62% of people living in rural areas where only 6% have access to electricity. The country exports 90% of its electricity, leaving small businesses facing frequent power cuts and disrupting their work.
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 and 35% to the Zimbabwe Electricity Supply Authority (ZESA). Mozambique consumes the remaining 5%. The HCB plant is responsible for most of the hydroelectric generation, with a capacity of 2,075 MW. In 2014, it supplied up to 88% of the power consumed in Mozambique.
Mozambique's unstable electricity supply is also costly, with impoverished households paying a significant proportion of their income for basic electricity needs. Enterprises such as bakeries, poultry farms, and cement block factories suffer losses during power outages, and the frequent power cuts also damage equipment.
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South Africa's power crisis
South Africa has been experiencing a power crisis, also known as "load shedding", since 2007. The country has been facing widespread national power outages, with households experiencing up to 10 hours of daily blackouts. This has had a significant impact on South Africa's economy, with power cuts holding back economic growth and crippling economic activity.
The primary cause of the power crisis in South Africa is attributed to insufficient generation capacity. The state-owned power utility, Eskom, has frequently been unable to generate enough power to meet the country's demand. This is due to a range of factors, including poor maintenance, neglect, and a lack of investment in power infrastructure. Additionally, corruption and mismanagement within Eskom, particularly during the Jacob Zuma administration, have exacerbated the crisis. There have also been multiple acts of sabotage, with power supply pylons being collapsed and cables intentionally cut.
In an effort to address the power shortage, South Africa has turned to its neighbouring country, Mozambique, for support. Mozambique is a significant supplier of hydropower to South Africa, with the Hidroeléctrica de Cahora Bassa (HCB) plant providing 60% of its power to Eskom. However, Mozambique has recently announced plans to end this supply by 2030, intending to secure the power for its own use. This has raised concerns for South Africa's economy, as well as the viability of the country's second-biggest aluminium smelter.
To mitigate the impact of the power crisis, South Africa has implemented rolling blackouts, managing the distribution of power to avoid a total collapse of the electricity grid. Additionally, the government has formed partnerships with businesses to address the issue, with interventions in areas such as transport infrastructure and electricity supply. Despite some improvements, the crisis is ongoing, and South Africa continues to face the challenge of providing stable and reliable power to its citizens and industries.
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Mozambique's energy exports to neighbouring countries
Mozambique has been supplying electricity to South Africa for almost half a century. However, in February 2024, Mozambique announced plans to end this supply, which comes from its Cahora Bassa plant. The decision is expected to impact South Africa's economy and the viability of Africa's second-largest aluminium smelter, Mozal.
Mozambique's Cahora Bassa plant is Africa's third-biggest hydropower plant, generating 2,075 megawatts of electricity. This power has been transmitted to South Africa's Eskom via 1,400 kilometres of transmission lines. Eskom then sells the power to Mozal, which requires about 900 megawatts of electricity for its aluminium output. This sales arrangement has been in place since 1979.
Mozambique's decision to end the power supply to South Africa is part of its energy transition strategy. The country aims to secure the 1,150 megawatts of power from Cahora Bassa for its own use. Mozambique's energy ministry has not provided any comments on the decision.
In addition to South Africa, Mozambique also supplies electricity to Zimbabwe. The Cahora Bassa plant provides 35% of its power to the Zimbabwe Electricity Supply Authority (ZESA). However, despite being a significant energy exporter, Mozambique faces challenges in providing access to electricity for its own population. Only about 34% to 44% of Mozambique's population has access to electricity, with rural areas particularly lacking access.
Mozambique's plans to end the power supply to South Africa have raised concerns about the impact on South Africa's economy and power supply. South Africa has been experiencing power cuts and rolling blackouts, and the loss of electricity from Mozambique will further strain its power utility, Eskom. However, an economist at Saint Thomas University in Maputo, Elcidio Bachita, has described the agreement between South Africa and Mozambique as a "win-win situation". He believes that Mozambique can benefit economically from exporting electricity, while also improving its own electricity supply.
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Frequently asked questions
Yes, Mozambique is currently supplying South Africa with electricity.
Mozambique's Hidroeléctrica de Cahora Bassa (HCB) plant currently provides 60% of its power, or 1,150 megawatts, to South Africa’s Eskom.
HCB sends electricity along 1,400km of transmission lines to Eskom in South Africa.
Mozambique's supply of cheap and clean electricity has been beneficial for South Africa's economy and industrial development. However, past disruptions due to storms have worsened power cuts in South Africa.
Mozambique plans to end its hydropower supply to South Africa when the contract ends in December 2030. This decision raises concerns for South Africa's economy and energy security.
