Mozambique hosts one of Africa’s largest hydro plants and some of the world’s biggest gas discoveries, yet a large share of its population lacks electricity. The gap between resource wealth and domestic access is the defining feature of its infrastructure story.
| National utility / operator | EDM; HCB operates Cahora Bassa |
| Regulator | ARENE |
| Market structure | State utility plus the giant HCB hydro exporter |
| What to watch in 2026 | Temane gas, Mphanda Nkuwa hydro, north-south transmission backbone |
On this page: Who runs Mozambique’s power system? · What is being built? · Why does exporting power matter? · What are the constraints? · What should suppliers know? · Key facts at a glance
Who runs Mozambique’s power system?
Electricidade de Moçambique (EDM) is the state utility for transmission, distribution and much generation; Hidroeléctrica de Cahora Bassa operates the giant Zambezi hydro plant, exporting most of its output to South Africa under long-standing arrangements. The energy regulator ARENE oversees the sector, and the Ministry of Mineral Resources and Energy sets policy.
What is being built?
A north–south transmission backbone to link the hydro and gas resources of the north and centre with demand in the south and with the Southern African Power Pool; further hydro on the Zambezi; gas-fired plants using domestic and offshore gas; and utility-scale solar and storage. Rural electrification programmes aim to lift access rapidly. See our grid section and power generation coverage.
Why does exporting power matter?
Export revenue from hydro underpins the sector’s finances and Mozambique’s regional role; new transmission would allow more of that power to serve domestic industry and to be traded within the power pool. Interconnection projects with South Africa, Zambia, Malawi and Zimbabwe are at various stages.
What are the constraints?
Financing and security in the north, utility finances, and the sheer distances involved in extending a grid across a large, thinly populated country. Development lenders including the World Bank and the African Development Bank are central to the pipeline.
What should suppliers know?
Expect lender-financed formal procurement through EDM and project companies, international EPC-led delivery, and demand for transmission equipment, substations, hydro and gas turbines, solar and distribution kit. Regional service partners and hard-currency payment structures matter.
Key projects and programmes to watch
- Mphanda Nkuwa hydro and the Cahora Bassa–Maputo transmission backbone, which would transform Mozambique’s ability to serve southern demand and export, see cross-border transmission financing.
- Temane gas-to-power and associated transmission, adding firm capacity from domestic gas, see gas peakers get a second look.
- Solar auctions under the PROLER programme and private solar and storage projects.
- Interconnectors to Malawi, Zambia and Zimbabwe within the Southern African Power Pool, see interconnector projects accelerate.
- Electrification and distribution expansion under EDM programmes financed by development partners, see loss-reduction programmes.
- LNG-related industrial demand in the north, which will require dedicated generation and grid.
How procurement, standards and financing work
EDM is the state utility procuring under Mozambican procurement law, with the World Bank, African Development Bank, EU, Norway and others financing most projects; Hidroeléctrica de Cahora Bassa is a separate state-controlled generator. The energy regulator ARENE licenses and sets tariffs. IPPs operate under PPAs and choose suppliers commercially. Standards follow IEC and regional SAPP practice.
Risks and constraints
Public-debt constraints, security challenges in the north and EDM’s finances slow large projects, and grid coverage remains limited outside the main corridors. Nevertheless, Mozambique’s hydro and gas resources, its central position in southern African trade and its electrification agenda make it a substantial long-term market for transmission and generation equipment. Read alongside our Africa energy infrastructure overview and guides to South Africa and Zambia.
Key facts at a glance
- Utility: EDM; Cahora Bassa hydro exports to South Africa; regulator ARENE
- Pipeline: north–south transmission backbone, hydro, gas-to-power, solar and storage
- Access: large unconnected population; rural electrification programmes
- Finance: development lenders central
Sources and further reading
- Electricidade de Moçambique, national utility
- ARENE, energy regulator
- World Bank, Mozambique, projects and analysis
- Southern African Power Pool, regional trade
- African Development Bank, Mozambique, energy lending
This article was researched and written by the EnergiTech Media editorial team and last reviewed in August 2026. We update country and sector guides as tenders, plans and regulations change. Spotted something out of date? Email support@energitechmedia.com.
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