FUNAE- Investment in Renewable Energy for economic and social development in rural Mozambique

Rural Economic and Social Development is promoted by increased sustainable access to energy. This program will, in line with a RERD (Renewable Energy for Rural Development) programme already implemented by the Belgian Technical Cooperation and funded by both Belgium and the Netherlands, focus on provision of energy services from renewable sources (mainly hydro and solar) in rural areas. In addition to investing in new generating capacity and connections, particular attention will be given to operation and maintenance of the installations and to the financial sustainability of existing and new systems. For this, appropriate payment mechanisms for energy consumed will be introduced. The Government of Mozambique, in its strategic plan, put emphasis on the role of the private sector in the realization of universal access to sustainable energy. Therefore, this project seeks also to invest in appropriate measures to ensure a more conducive environment for private sector operators to play their part in the provision of electricity through renewable sources.

Access to energy in rural areas is increased by investments in renewable energy systems and support to mechanisms ensuring sustainability (such as payment for energy services and systematic maintenance).