LUSA 07/11/2025

Lusa - Business News - Mozambique: South Africa's Eskom bought 66% of Cahora Bassa electricity in 2024

Maputo, July 10, 2025 (Lusa) - South African company Eskom purchased 66% of all electricity generated in 2024 by Mozambican company Hidroelétrica de Cahora Bassa (HCB), despite a second consecutive year of decline, when the Mozambican government expects to reverse that supply contract.

According to HCB's report and accounts, consulted on Thursday by Lusa, of the total 12,351 gigawatt hours (GWh) of energy delivered by the Mozambican state-owned company in 2024, the South African energy company received 8,319 GWh and Eletricidade de Moçambique (EDM) 3,451 GWh, equivalent to about 30% of the total, and Zimbabwe's ZESA 499 GWh (4%).

In addition, HCB recorded transmission losses of 6.76% of total production, compared to 7.60% in 2023.

Mozambican President Daniel Chapo confirmed on 23 June that he will move forward with the energy reversal process in 2030, ending the contract for the supply of electricity produced in Mozambique to Eskom, in force since 1979.

The position was taken by the head of state during the ceremony marking the 50th anniversary of HCB in the province of Tete, central Mozambique, one of the largest electricity producers in Africa.

"In 2025, in addition to implementing rehabilitation projects, HCB, looking ahead to the energy reversal planned for 2030 - Mozambique will take control of its energy generation with the end of the contract with Eskom - HCB must consolidate its role in Mozambique's energy development," said the head of state in his speech, confirming the intention already signalled by the previous government.

Lusa reported in February 2024 that the Mozambican government - then led by President Filipe Nyusi - intended to ‘repatriate’ from 2030, for domestic use, the electricity it has been exporting from HCB to South Africa since 1979.

This position is set out in the Energy Transition Strategy for Mozambique until 2050, approved by the previous government, which sets this objective for 2030: "The main short-term priority is the repatriation of electricity from HCB, currently exported to South Africa (8-10 TWh) [TeraWatt-hour], as well as the addition of 2 GW [GigaWatt] of new national hydroelectric capacity by 2031".

The document also recalls that the Cahora Bassa hydroelectric power plant is the "most important in Mozambique", with a total installed capacity of 2,075 MW (Megawatt), and is majority-owned by the Mozambican State.

"Since the start of operations in 1979, HCB has exported most of its electricity production to the South African state-owned company Eskom, with a smaller portion supplied to Eletricidade de Moçambique. HCB's electricity is cheap and clean," the document reads.

Of the total production, only 300 MW of ‘firm energy’ and 380 MW of ‘variable energy’ are supplied by HCB to the Mozambican state-owned electricity company.

"In 2030, the Power Purchase Agreement between HCB and Eskom will come to an end and important decisions will have to be made regarding the commercialisation and final destination of HCB's clean energy," it adds.

On the outskirts of Maputo, in the south of the country, the South African-owned Mozal aluminium plant, which is one of the largest consumers of electricity in the country, with a requirement of 900 MW, powered by electricity supplied by Eskom - a supply contract that also expires in 2026 - due to the difficulties of the Mozambican electricity grid, .

According to the document, the increase in hydroelectric production capacity will be guaranteed by the new Mphanda Nkuwa hydroelectric plant and the construction of the northern station of the HCB.

"Mozambique's unique hydroelectric resources will form the strategic backbone for low-carbon energy production and the country's green industrialisation ambitions, which is a national priority," the government stated in the same document.

 

 

 

 

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