The development of a long-term financing plan of an Emergency Energy Module in Quirimize, Mozambique

Sammanfattning: Lack of capital is one of the most common barriers for rural electrification in Mozambique. High upfront costs combined with high risks constitute some of the largest obstacles for the development of electricity access. Situated in the northern province of Cabo Delgado in Mozambique is the fisherman’s village Quirimize. The main source of income in the village is fishing. The fishermen currently sell their fish at low prices to traders that transport it to sell at larger markets to a higher price. The fishermen in the village have expressed a demand for access to ice, as this would shorten the value chain and allow the fishermen to sell directly to the larger markets. This would lead to an increase in income for the fishermen. Access to ice could be made possible by installing an energy system providing electricity for ice production. This report is an evaluation of suitable financing for the implementation of an Emergency Energy Module (EEM), a hybrid energy system that generates electricity from a combination of renewable energy techniques. The EEM has been developed by the research umbrella organization EXPLORE Polygeneration. The evaluation has been conducted through field studies in Quirimize, as well as interviews with relevant actors working with rural development within the energy sector. The fishermen’s solvency for ice is estimated, as well as the ice demand. Two system configurations are proposed as alternatives for implementation. Based on the cash flow analysis conducted in this report, the implementation of an EEM would gain steady revenues from ice sales, making it possible to finance the system by a loan. Investigations showed that for a successful implementation of a rural energy project, there is not only a need for technical knowledge and financing, but also knowledge about the local area and its inhabitants. This can be provided by an actor that has carried out similar projects in the area. For the project evaluated in this report, examples of such actors are the National Institute for the Development of Small-Scale Fisheries (IDPPE), the Sanitation Group of Bilibiza (GSB), and the Development Aid from People to People (ADPP).