Mozambique Power Report Q2 2016
BMI View: Mozambican power generation growth is forecast to be subdued throughout our forecast periodas delays to power plants are occurring across the board. Further gas exploration still provides ampleopportunities for increase in gas-fired generation and German investment into power infrastructure willprovide the opportunity for an increase in electrification and quality of electricity supply.
Latest Updates And Structural Trends
British and Chinese companies, Ncondezi Energy and Shanghai Electric Power (SEP), have enteredinto a joint development agreement (JDA) for the development of the Ncondezi coal mine and powerplant in the Tete province. Due to a change in generation technology, the companies will reportedly haveto reapply for environmental approval for the planned 300MW coal-fired plant.
We have cut our thermal generation forecasts down from almost 7TWh to an of 1.92TWh for our forecastperiod, due to currently predicted delays for coal-fired generation coming online, slower development ofgas-fired plants as well as more moderate growth expectations in thermal generation for commissionedpower plants.
The Cahora Bassa hydropower dam has recorded its highest level of output yet, generating up to16.9TWh in 2015.
All of Mozambique's hydropower projects are reportedly delayed, with the expectation from theMozambique being that further investment into thermal power will provide a renewed boost tohydropower projects as well. We therefore do not currently forecast any new hydropower capacitycoming online within our forecast period.
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