Background
Although grid electricity tariffs in Mozambique are currently set by the Ministry of Finance there is no regulation on tariff-setting for off-grid electricity generated from renewable energy sources. For the success of FUNAE (the Portuguese acronym for Mozambique National Fund for Rural Electrification) it is critical to have a tariff setting tool based on a detailed and accurate analysis of all the financial economic social and environmental aspects that directly influence the cost of providing electricity generated from renewable energy sources in off grid locations. Currently such a tool does not exist which compromises the capacity of FUNAE to charge adequately for its power generation projects.
Purpose
To develop an off-grid RE tariff-setting tool for FUNAE that is suited to small-hydro solar wind and biomass (the most appropriate RE technologies for Mozambique) which is based on a detailed and accurate analysis of all the financial economic social and environmental aspects.
Implementor
FUNAE - Fundo de Energia