Mini-Grid Hydropower for Rural Electrification in Mozambique - Integrating Water, Energy, and Food production

Mozambique has abundant hydropower resources but faces severe energy access challenges, particularly in rural areas where only 27% of the population has access to electricity. The country relies heavily on large-scale hydropower exports, leaving rural communities underserved. This study explores mini-grid hydropower solutions as a cost-effective approach to decentralized rural electrification, addressing energy security, economic development, and environmental sustainability. The report advocates for a nexus approach, integrating water, energy, and food production to maximize local benefits.

Key Findings

The study highlights the potential of small-scale hydropower in Mozambique, particularly in regions like Manica Province, where numerous rivers provide ideal conditions for mini-grid development. Hydropower remains the second-largest energy source (13%) after biomass (78%), but rural access remains limited due to inadequate infrastructure and high grid extension costs. The Chua Village case study demonstrates the feasibility of run-of-river hydropower systems, which could power 80-200 households per plant while supporting small-scale industry, such as grain milling and irrigation. The study finds that willingness to pay for electricity among rural households is between 8-19 USD per MWh, indicating economic viability for localized power generation.

Mozambique’s current energy export model leaves rural areas underserved, despite an annual hydropower generation of 17,000 GWh. More than 70% of this energy is exported, while rural communities continue to rely on biomass and kerosene, leading to deforestation and health risks. Expanding mini-grid hydropower could reduce reliance on fossil fuels, improve household well-being, and support productive activities. However, institutional barriers, lack of private investment incentives, and financing gaps hinder small-scale hydropower development. The report emphasizes the need for government support, streamlined regulations, and financial mechanisms to attract private-sector investment.

Adopting a water-energy-food nexus approach enhances the socioeconomic impact of rural electrification. Small hydropower plants can provide electricity for essential services, such as health clinics, schools, and water pumping for agriculture. The integration of energy with small industries (e.g., food processing and irrigation) improves economic returns, making projects financially sustainable. The study also warns of environmental risks, particularly sedimentation from upstream deforestation and artisanal mining, stressing the need for sustainable land-use planning alongside electrification efforts.

Mini-grid hydropower offers a viable and sustainable solution for expanding rural electrification in Mozambique, with strong potential to enhance economic opportunities and improve livelihoods. However, policy reforms, investment incentives, and integrated development strategies are necessary to scale up these solutions effectively. Community engagement and capacity building will be essential in ensuring long-term sustainability and local ownership of mini-grid projects.

The Bibliography sources:

RESET Foundation is committed with the The Sustainable Development Goals (SDGs). By integrating renewable energy solutions with local economic development, Mozambique can bridge the rural-urban energy divide while enhancing sustainability and resilience. The Mini-grid hydropower is linked to several SDGs:

The SDG'sG's, also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.