Mozambique developing coal power plants despite erratic funding

 Mozambique developing coal power plants despite erratic funding

Mozambique developing coal power plants despite erratic funding.

Spread the love

Mozambique has been mentioned in a new report among 8 out of 18 High Impact Countries (HICs) with   new coal-fired power plants that are under active development in 2021 notwithstanding that sources of finance for new plants is tightening as  more countries announce their exits from coal.

Other countries with new coal fired power plants mentioned  in  a report titled Coal Power Finance In High Impact Countries produced by Sustainable Energy for All  and Climate Policy Initiative     include   Bangladesh, India, Pakistan, Madagascar, Malawi, Niger and Tanzania.

“Coal finance is concentrated in a small group of countries. Global demand for new coal-fired power plants is becoming increasingly concentrated as sources of finance for new plants tightens and more countries announce their respective exits from coal. However as of 2021 new coal-fired power plants are under active development in eight of the 18 HICs assessed in this analysis. These are Bangladesh, India, Pakistan, Madagascar, Malawi, Mozambique, Niger and Tanzania,” said the report.

Of these eight HICs, India is expanding new coal-fired power generation capacity at by far the greatest scale and is home to 87 % of the total coal generation pipeline currently under active development in HICs.

According to research financiers are now preferring to fund   renewable energy, the fastest-growing energy source globally than fossil energy. Renewables made up 26.2 % of global electricity generation in 2018 and is expected to rise to 45 % by 2040.

Mozambique was also mentioned as one of the 18 HICs which   has received the majority of finance commitments to new coal plants since 2013.

 “This knowledge brief highlights the political and economic dynamics underpinning recent investments in coal-fired power in 18 (HICs), defined as the countries with the highest absolute gaps in access to electricity. South Asian HICs Bangladesh, India and Pakistan have received the majority of finance commitments to new coal plants since 2013, and African HICs Madagascar,  Mozambique, Malawi, Niger and Tanzania all host active coal plant development,” the report noted.

Mozambique has a 800MW under development Power System Master Plan for the development of coal and natural gas for future growth of industrial field.

The report noted that with large and growing populations still without access to electricity, African HICs will largely determine the extent to which coal continues to proliferate into new corners of the globe.

“To date, 91 %of all planned coal-fired power plants in African HICs tracked by Global Energy Monitor have either been shelved or cancelled, leaving 1.9 GW of capacity under development across Madagascar, Mozambique, Malawi, Niger, and Tanzania,” said the report.

According to the report unlike Bangladesh and Pakistan, these five African HICs are not experiencing issues with overcapacity, as total electricity access rates range from only 11 % of the population in Malawi to 38 % in Tanzania.

“Nevertheless, investments in large-scale, centralized power generation in Africa risks underutilization similar to that seen in South Asia,” the report said.

Fidelity Hamilton Mhlanga

Fidelity Hamilton Mhlanga has been writing finance and business news over the past 5 years. He earned a BSC in Media and Society Studies and Masters of Development Studies from Midlands State University, in Zimbabwe. He follows mining, insurance, banking and energy stories. He is passionate about development and growth.

Related post