The initiative GET FiT Minigrids for Africa of the Federal Ministry for Economic Cooperation and Development (BMZ) was launched to facilitate, expand and secure the supply of sustainable energy in rural Africa. GET FiT Minigrids aims to improve the conditions for decentralised energy supply in rural areas in selected African countries, involving both citizens and companies. To this end, GPE is working in nine countries across sub-Saharan Africa, including Mozambique.


GET FiT Minigrids for Africa: Mozambique promotes the role of the private sector in the construction and operation of mini-grids based on renewable energy (RE) sources. The planned objective is to develop 3 MW of installed capacity in the form of mini-grids with each mini-grid or packages of mini-grids having a capacity range of around 200-500 kW. This first round will result in 10 to 16 projects, selected in close cooperation with the Fundo Nacional de Energia (FUNAE), the Mozambican public institution that is responsible for off-grid sector development and the Autoridade Reguladora de Energia (ARENE), the energy sector regulatory agency.

Impact

  • Provide power to up to 7,000 Mozambican households.
  • Reduce at least 3,700 tonnes of CO2 emissions per year
  • Leveraging over EUR 25 Million in private sector funding..

Implementation Strategy

The Programme design will be closely aligned to the GET FiT Mozambique on-grid program and its subsequent toolbox and implementation structure. It shall be supported by the same Implementation Consultant to leverage synergies and guarantee an efficient use of means. The intended scope of work will be very similar to GET FiT on-grid due to the close alignment of the two components and the use of the same implementation structure. Accordingly, the Implementation Consultant shall adapt or elaborate the necessary standard procedures and documents (esp. a concession agreement), secure the land rights for the program sites and shall design and implement the tender processes for the Viability Gap Fundig Mechanism for the off-grid component. Furthermore, the Implementation Consultant shall be responsible for environmental and social risk management, technical and legal issues and shall elaborate or adapt all necessary additional or subsequent studies and management plans including detailed site-specific E&S and target group analyses.

Projects will be selected through a two-stage reverse public auction process. In stage one, applicants will be required to demonstrate a series of pre-qualification criteria such as proven track record of developing and completing RE projects. In the second stage, IPPs will submit business plans and a financial offer. These will be reviewed for viability as well as for meeting World Bank’s International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability. The evaluation and selection criteria for the second phase consist of, firstly, a viable business plan with the respect to the provision of energy services, and secondly, the tariff structure presented. The candidate with the lowest tariff will win the competition


GET FiT Minigrids toolbox

The programme aims to increase the electrification rate in rural areas in Mozambique using solar PV mini-grids with storage mini-grids developed by IPPs. The IPPs will ensure the financing, operation and maintenance of the power generation facilities, as well as the sale of electricity directly to the end-consumer. The intervention design will be closely aligned to the GET FiT Mozambique on-grid Programme. The pillars of the off-grid component shall consist of:

A tariff top-up will fill the gap between the national off-grid tariff and the cost-reflective tariff agreed upon in the Power Purchase Agreement (PPA)

Support MIREME in the management of the Programme, namely in the preparation of selection rounds and procurement, legal issues, and management of environmental and social risks.

Promoting productive use to support income generation in rural areas and favourable demand patterns. Existing or newly established companies and companies in the process of formation can receive technical and financial support to ensure sufficient energy demand.


Stakeholders

Programme Executing Agency (PEA)Ministério dos Recursos Minerais e Energia (MIREME)
Programme Implementing Unit (PIU)Direcção Nacional de Energia (DNT)
Funding EntityKfW Development Bank
Implementation ConsultantMulticonsult Norge AS (contract to be concluded in 2023)
SecretariatJointly with GET FiT Mozambique
Ministry of Energy logo KFW logo German Cooperation logo European Union logo