The main electricity authority is Electricidade de Mozambique (EDM), established by the state in 1977, two years after independence. EDM is responsible for generation, transmission and distribution, but there are other companies that produce and distribute electricity. The main one is Hidroelectrica de Cahora Bassa, a company jointly owned by Portugal (82%) and Mozambique (18%) and the biggest hydroelectric scheme in Southern Africa.
Operations at Cahora Bassa, on the south side of the Zambezi River, are operating at higher capacities following restoration of the DC transmission line from Cahora Bassa to South Africa by EDM and Eskom, the South African power utility. Other large hydro power plants in Mozambique have continued to operate at less than full capacity, including Mavuzi (44.5 MW effective capacity out of 52 MW nominal capacity); Chicamba (34 MW of 38.4 MW); and Corumana (14 of 16.6 MW).
Mozambique is seeking to boost power output as demand grows in South Africa. The country also needs to meet a national growing demand from a planned titanium plant and a possible future expansion to an aluminium plant.
Mozambique is one of the largest power producers in the SADC region. It is also a member of the Southern African Power Pool (SAPP).
EDM is facing power demand growth at a rate around 8% per year, owing to the accelerated economic growth rate of the country. A national effort has been made to expand and intensify new household connections, thus some power projects have been initiated.
Even though it is widely believed that generating capacity is under utilised, power output has been set to increase with further generating plants due to begin operations in 2006. These include the Moatize thermal power station (1000 MW) and the Cahora Bassa northern expansion (550 MW). Mozambique is seeking investors to embark on the construction of a 1 400 megawatt hydropower plant on the country's Zambezi River. The planned plant at Mphanda Nkuwa on the Zambezi would add to the Cahora Bassa station, which lies upstream of the new site.
The Niassa province is in the process of receiving electrical power, most of the electrification for the province is already completed. All infrastructures in Lichinga, the province’s capital city, have been prepared for connection with the national grid. The connection is yet to be completed.
A loan of US$ 14 million has been secured from the African Development Fund (ADF) to finance Electricity III, Mozambique's rural electrification project. The project aims to enable rural communities to increase their economic activity and improve their standard of living through the provision of electrical power. 19 towns have been identified to benefit from the project in Gaza, Inhambane, Tete and Nampula provinces. The bulk of the money for the project will be spent on the construction of 895.5 km of 33 kV overhead line, 72 km of 0.4/0.22 kV overhead lines and the erection of 76 of 33/0.4 kV pole mounted transformer stations. The total project cost of US$ 24.33 million has also been funded by the OPEC Fund and EDM.
A new transmission line is also undergoing a process of construction between Mozambique and Zimbabwe.
