Solar Energy for Industrial Efficiency – Pre-Feasibility Assessment for JFS RESET
- Fundação RESET
- Nov 5, 2020
- 2 min read
The GET.invest pre-feasibility assessment for Grupo JFS – Sociedade Algodoeira do Niassa JFS, SA explores the viability of implementing a solar photovoltaic (PV) system to reduce energy costs, enhance sustainability, and improve operational efficiency. Conducted with support from the European Union and Germany, the study focuses on replacing grid electricity and minimizing reliance on diesel generators through a 707 kWp grid-tied solar PV system. This initiative aligns with Mozambique’s broader strategy to expand access to clean and affordable energy in industrial and rural settings.
Key Findings
The assessment analyzed JFS San’s energy consumption profile, revealing a high and stable electricity demand of 925,200 kWh annually, primarily supplied by the grid. The factory operates 24 hours per day, six days a week, with seasonal variations in demand from August to December. Electricity costs in Mozambique are subject to annual tariff increases (4.65%) and inflation adjustments (2.51%), making energy expenses a major operational burden. The report highlights that integrating a solar PV system could reduce electricity dependence from the grid by 44%, significantly cutting long-term energy costs.
Three financial models were assessed for implementing the solar PV system: self-investment (EPC model), 5-year leasing, and 10-year leasing. The self-investment model requires an initial CAPEX of $700,000 USD but offers the highest net savings of $1.18 million USD (pre-tax) over the system’s lifetime. The 5-year leasing model emerged as the best investment option, providing a higher Net Present Value (NPV) of $175,000 USD, compared to the EPC and 10-year lease alternatives. The solar PV system is projected to generate 1,102,987 kWh per year, leading to 403,205 TCO2 in annual carbon savings.
The study recommends proceeding with the 5-year lease model, as it minimizes investment risk for Grupo JFS while ensuring consistent electricity cost savings. Next steps involve inviting solar PV providers, conducting a final technical review, and securing financing for implementation. The system will operate in parallel with the national grid, without battery storage, ensuring economic feasibility while reducing the company’s carbon footprint.
The pre-feasibility study confirms that investing in solar energy at Grupo JFS can significantly reduce electricity costs, improve energy independence, and support sustainability goals. The proposed 707 kWp solar PV system would lower operational expenses, provide long-term financial benefits, and contribute to environmental conservation by reducing carbon emissions. Adopting the 5-year leasing model is the most viable approach, balancing cost-effectiveness and investment security. Successful implementation will set a precedent for industrial solar adoption in Mozambique, supporting broader renewable energy transition efforts.
The Bibliography source:
RESET Foundation is committed with the The Sustainable Development Goals (SDGs). By integrating solar power, JFS RESET will not only achieve long-term energy cost savings but also enhance its role in Mozambique’s transition toward sustainable industrial practices. The GET INVEST project 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.
