About GET FiT
The GET FiT acronym stands for Global Energy Transfer Feed-in Tariff. The overall objective of the GET FiT Programme is to assist African nations in pursuing a climate resilient low-carbon development path resulting in growth, poverty reduction and climate change mitigation. Implementation of GET FiT in Mozambique will solidify GET FiT as one of Africa’s most successful and reputable renewable energy Independent Power Producers (IPP) initiatives.
GET FiT Mozambique aims to diversify Mozambique’s power mix; strengthen the power market alongside Mozambican stakeholders to boost institutional capacity and enable favorable policy, legal and regulatory frameworks for IPPs in renewable energy and battery energy storage services (BESS) in Mozambique.
Through implementation of GET FiT, the key aspects of mobilization of investment, lasting reform, improved transparency and predictability, standardization, technical assistance, professional procurement and cost sharing shall be emphasized in order to ensure true domestic ownership of GET FiT Mozambique.
GET FiT Mozambique is implemented by Ministerio dos Recursos Minerais e Energia (MIREME) as the Project Executing Agency and financed by the German Financial Cooperation through KfW Development Bank. The programme supports the Government of Mozambique in improving framework conditions for private investments in renewable energy.
GET FiT Mozambique foresees several tender rounds targeting different renewable energy technologies. In the first round, approximately 25-30 MW Solar PV capacity plus BESS shall be procured through an international competitive tender on an IPP basis, under the aegis of Autoridade Reguladora de Energia (ARENE) and with Electricidade de Moçambique (EDM) being the off-taker. Total capacity procured will depend on the price outcomes of the competitive procurement process. The introduction of BESS as part of the tender is a new innovation for the GET FiT Programme, and the hybrid-model presents a novelty in procurement programmes in Africa.
GET FiT Mozambique Goal Statement
GET FiT Mozambique aims to improve conditions for private investments in renewable energy in order to contribute to a climate friendly development path in Mozambique and to reduce CO2 emissions and poverty.
Specifically the Programme shall contribute to:
- Efficient and secure power supply
- Job creation
- CO2 emission reduction
- New renewable power generation capacity
- Timely implementation of IPP projects
- Leverage private capital
- Increase utilization of renewable energy resources
- Standardized legal and commercial documents and procedures
- Financial and commercial risk mitigation for IPPs
- Timely connection of new capacity to the national grid
Additionally, the Programme aims to:
- Contribute to improved power supply quality.
- Ensure that projects are implemented and operated in a environmentally and socially sustainable manner
GET FiT Toolbox
GET FiT Mozambique avails a set of tools designed to help create an attractive environment for private investors and systematically support both the Mozambican government and the utility, Electricidade de Moçambique, to meet these objectives. These programme components are described below.
Mitigating political & commercial risks, e.g. off-taker risk
Top-up for cost-reflective tariffs to make IPP projects with new renewable energy technologies viable
Grid Studies and Technical Assistance to ensure effective and timely connection of new IPPs to the grid
Support and capacity building for planning and implementation of competitive procurement for renewable energy
Risk Mitigation Facility
The Risk Mitigation Facility will be developed in close collaboration with providers of financial risk mitigation instruments, such as African Trade Insurance (ATI), as optional for developers and financiers. ATI combines the existing Termination Guarantee insurance with a short-term liquidity product (the Regional Liquidity Support Facility) which was jointly developed by ATI and KfW.
Viability Gap Facility
GET FiT will offer performance-based tariff support for a portfolio of qualifying projects. In effect, viability gap funding facilitates the entry of early movers from the private sector into new renewable energy technologies in Mozambique.
The Grid Integration Component of the GET FiT Program consists of two different elements. GET FiT is providing advisory support to EDM regarding grid integration of hybrid solar systems into Mozambique’s national grid. GET FiT can also provide limited financial support for grid integration for solar PV and battery energy storage services.
Technical Assistance Facility
The Technical Assistance facility is focused on planning and implementation of competitive procurement of renewable energy to enable an efficient and transparent investment framework as well as grid integration of renewable energy into the Mozambican grid. This includes elaboration of bankable, standardized transaction documents for small scale-RE IPP Projects (e.g. Power Purchase Agreements (“PPA”), concession and license contracts/Implementation agreements, grid connection agreements), and dealing with legal issues related to IPP development. A heavy focus is on management of environmental and social risks, with attention given to ensure compliance with the Environmental and Social Framework for GET FiT Mozambique and safeguarding of international performance standards. Read more about how GET FiT Mozambique works to ensure environmental and social sustainability throughout the implementation of the programme and sub-projects construction and operations here (page under development).
GET FiT Mozambique is implemented by Ministerio dos Recursos Minerais e Energia (MIREME) as the Project Executing Agency, and financed by the German Financial Cooperation and the European Union through KfW Development Bank.
GET FiT Secretariat and Programme Implementation Consultant
The GET FiT Programme has established a Secretariat, a key entity in the implementation of the Programme, serving as the main point of contact for all stakeholders of the Programme. Overall, the Secretariat provides comprehensive commercial, technical and administrative support in the effort to realize the renewable projects. Among others, it is responsible for the implementation of the Technical Assistance Facility.
The GET FiT Secretariat is located in Maputo and is managed by the Programme Implementation Consultant Multiconsult. One full-time representative are running the day-to-day management of the Secretariat.