Mozambican Energy Industry: EDM in seek of US$1 billion to renew power grid

Mozambican state-owned electricity company Electricidade de Moçambique (EdM) needs US$1 billion to improve the quality of the power it provides, said the company’s chairman explaining that the grid was in disrepair and unable to meet demand as quoted by national press.

“The grid is severely deteriorated and is over 40 years old in the south of the country and over 50 years old in the central region and so we have to spend money on a new one,” said Augusto Fernando, who noted work would begin soon in the south, with an estimated cost of US$250 million.

Fernando said there were also development projects for the central and northern regions, and the network of the latter region is considered critical as it is running at full capacity.

“In terms of figures I would say the city of Maputo alone needs US$500 million and a similar amount for the rest of the country, so that the situation can be brought up to a minimum standard,” he said.

Despite the difficulties, Fernando gave assurances that by the middle of next year, in northern Mozambique the situation will be resolved whilst the southern region will need to wait at least two more years.

Constant power cuts and surges of the electric current have resulted in numerous complaints, and in February, for example, the cities of Beira and Chimoio were without electricity supply for 10 days.