Nordic Business Breakfast
10 th December 2014
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
1 com energia construimos futuro

Table of Content
1. Macro economic indicators
2. Electricity Sector Industry
3. Present and future challenges
4. Natural Energy Resources
5. Generation Expansion Plan
6. Conclusion
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
2 com energia construimos futuro

o Population: 23.760 mil o GDP (Nominal): USD
15.355 billion o Per capita: USD 630 o GDP Growth Rate : 7.5%
(2013) o Exchange Rate USD/MT:
30.50
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
com energia construimos futuro
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INTERNATIONAL CONTEXT
World Economy GDP growth Rate (%)
• Euro Zone
• Asia (China e Índia)
• Sub-Saharan Africa
• Mozambique
World Inflation Rate (%)
• Euro Zone
• Sub-Saharan Africa
• Mozambique
2010
5.3
1.9
9.5
5.7
7.1
3.7
1.6
7.5
12.7
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
4
2011
3.8
2.0
7.8
5.2
7.3
4.8
2.7
9.3
10.4
2012
3.3
-0.7
6.7
4.5
7.3
4.0
2.5
9.0
2.1
com energia construimos futuro
2013
3.0
-0.4
6.5
5.1
7.5
3.8
1.5
6.9
4.2

ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Table of Content
1. Macro economic indicators
2. Electricity Sector Industry
3. Present and future challenges
4. Natural Energy Resources
5. Generation Expansion Plan
6. Conclusion
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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ELECTRICIDADE DE MOÇAMBIQUE, E.P.
 Electricidade de Moçambique (EDM): The national power utility wholly owned by the state responsible for the generation, transmission, distribution and
commercialization of electricity throughout the country.
 Hidroeléctrica de Cahora Bassa (HCB): Owned by
Moçambique Government (92,5%) and REN /
Portugal (7,5%) is the Independent Power Producer
(IPP) responsible for the generation of electricity in
Cahora Bassa (2075 MW)
 Mozambique Transmission Company (MOTRACO):
Independent Transmission Company (ITC) , Owned
33.3% by EDM, 33.3% ESKOM and 33.3% SEB with the responsibility to supply electricity to MOZAL and wheel power to EDM and SEB of Swaziland
7 com energia construimos futuro

1977
2004 2006 2007
15 Districts
Electrified
15 Districts
Electrified
2008 2009 2010
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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2014
121 Districts
Electrified com energia construimos futuro

Outlook Of Mozambique Power Sector
–
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Outlook Of Mozambique Power Sector
Customer base and new connection
Moçambique is after South Africa the highest new connection rate per Year in SADC with an average of 140 000 new connection in the last 3 years
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Outlook Of Mozambique Power Sector
Transmission National Grid Expansion
Past Present Future
2020
All capital provinces connected to the national
Grid
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
Novas centrais e linhas de transporte para responder a demanda
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Outlook Of Mozambique Power Sector
Historic power balance
Cahora Bassa contributes with 94% of the power balance
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Outlook Of Mozambique Power Sector
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Outlook Of Mozambique Power Sector
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
2013 2014 2015 2016 2017 2018
Peak Demand Capacity Planned
Planned Capacity will exceed peak demand by 2016.
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Table of Content
1. Macro economic indicators
2. Electricity Sector Industry
3. Present and future challenges
4. Natural Energy Resources
5. Generation Expansion Plan
6. Conclusion
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Outlook Of Mozambique Power Sector
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Government and Regulator
Donnors and
Financiers
The new paradigms….
Before
• Extend the access to electricity to the population
• Promote “cheap energy” for economic development
• Institutional development and
regulation of the electricty sector
• Finance de development of the electricity system in the Country
• Funding predominant under
Concessional Scheme
• Regulated tariff system
Present & Future
• Ensure medium and long term energy needs and access to natural resources
• Competitiveness of the energy sector in the
Country
• Promote private initiative
• Operational management efficiency
• Economic and Financial viability on the investment (PPP)
• Cost reflective Tariff and or Cost recovery mechanism
• Governance, transparency,
Clients / market
• Access to basic energy services and low tariffs
• Surplus capacity of infrastructure in transmission
• Excess of energia
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
‹#›
• Availability / Service / Quality of Supply /
Industrialization
• Transmission Capacity on the Limit / constrains
• Déficit of power and new generation plants com energia construimos futuro

Table of Content
1. Macro economic indicators
2. Electricity Sector Industry
3. Present and future challenges
4. Natural Energy Resources
5. Generation Expansion Plan
6. Conclusion
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Mozambique Natural Resources: Hydro
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Outlook Of Mozambique Power Sector
• Mozambique is the second country in
Southern Africa with the biggest hydro potential
• The potential in Zambezi river is beyond 8 000 MW and only 2075 MW is in operation at Cahora Bassa South
Bank
• The total unexplored hydro potential in Mozambique is close to 12 000
MW out of which in Tete province
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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 Mozambique Coal reserves are believed to be amongst the world’s largest , and a strong investment currently being made in the sector, particular in the Tete Province
 Moatize Coal basin poised to become the
World’s newest major export coal basin
 2 large scale projects already in mining activity (20 to 50 Mtpa)
 Additional large scale coal projects in exploration (Ncondezi, Jindal, Rio Tinto,
Zambeze, Revuboe, etc..)
 Potential + 50 Mtpa of export coal by 2025
The coal proven reserves can produce more than 8 000 MW, base load power for 30 years
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Outlook Of Mozambique Power Sector gás
 The only gas fields currently in production in the country are located in Temane, in
Inhambane province
 The gas is exported and transported by pipeline to South Africa by SASOL, a South
Africa Company
 27 MGJ are allocated for power generation
 > 100 MGJ is for export to South Africa
 Currently, EDM, SASOL, Investec, Aggreko,
Gigawatt and MGC are developing generation power projects
 Around 350 MW will be Installed until 2016 in Ressano Garcia (Border with South
Africa)
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Outlook Of Mozambique Power Sector
Gás
 2011 and the first months of 2012 saw the announcement of successive large finds of natural gas in Mozambique offshore.
 Such potential of natural gas identified is corresponding to 150 to 200 trillion cubit feet.
 The size of the natural gas finds in the
Rovuma basin could turn Mozambique into Africa’s second large exporter of natural gas in 2019/20
 Medium and large scale power generation plant could be installed in the north of
Mozambique (> 2000 MW)
 Possibility of large scale development of a liquefied natural gas (LNG) project
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
com energia construimos futuro
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Table of Content
1. Macro economic indicators
2. Electricity Sector Industry
3. Present and future challenges
4. Natural Energy Resources
5. Generation Expansion Plan
6. Conclusion
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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 EDM created in 1977 with monopoly for GX, TX & DX (except for HCB)
 Law for Public Enterprise approved in 1991 (Lei Nº. 17/91)
 EDM transformed into a Public Enterprise in 1995
 Electricity Act approved in 1997 (Lei Nº. 21/97)
 Electricity Regulation Decree approved in 2000 (Decreto 08/2000)
 Tariff System Decree 29/2003
 EDM designated Manager of the National Transmission Grid and System
Operator in 2005 (43/2005)
 Private Partnership
Law for Infrastructure (Decree nº 15/2011)
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Outlook Of Mozambique Power Sector
 Natural Resources
 Proven Gas reserves
 Proven Coal Reserves
 Proven firm Hydro Renewable
Reserves
 Financing
 Corporate balance
 Possible to refinance after COD
 Hydro Base
 No FSA
 Long Term PPA
 Thermo Base (Coal)
 Coal as a waste product from mining
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Ncondezi
(300 MW)
Cahora Bassa
Norte (1245MW)
Benga
(300 MW)
Palma (ENI)
(75 MW)
Lúrio
(120 MW)
Alto-Malema
(60 MW)
Mphanda
Nkuwa
(1500 MW)
Moatize
(300 MW)
Mavuzi 2 & 3
(60 MW)
Massingir
(25 MW)
Kuvaninga
(40 MW)
CTRG
(175 MW)
ELECTROTEC
(30 MW) CTM
(100 MW)
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Boroma
(200 MW)
Lupata
(600 MW)
Temane
(400 MW)
Gigawatt
(100 MW)
2012 - 2014
2015 - 2017
2018 - 2020
> 2020
Aggreko
(222 MW) com energia construimos futuro

ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
(Short and Medium term)
Carvão [MW]
Gas [MW]
Hidrica [MW]
2015 2016 2017 2018 2019 2020
Hidrica [MW]
Gas [MW]
Carvão [MW]
2015
78%
22%
0%
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
2016
73%
27%
0%
2017
62%
38%
0%
29
2018
55%
38%
7%
2019
37%
44%
19%
2020
37%
44%
19% com energia construimos futuro

(Medium and long term)
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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(Medium and long term)
Until 2020 Gás will contribute with 42% of energy
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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Road map of EDM equity financial participation
Corporate loan facilities secured on cashflows from realisation of cluster investments
Future corporate loans
Potential concessionary finance
EDM Investments
(EDMI)
Future project rights and opportunities
Future generation investment opportunities
Future transmission investment opportunities
Power trading
Concessionary finance secured on basis that EDMI becomes a core business and vehicle for future economic and social development
Cluster dividends, project refinancing cashflows, selldown of stakes
Hydro cluster
Transmission cluster
Large scale thermal cluster
Small scale generation cluster
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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PROJECTS
Development / Regulatory ESIA
MoU JDA FWA SHA CA EPDA ESIA
Feasibility Studies
Aprovação ambiental
GEOTÉCNI
CO
ENGENHARI
A BASICA
ENGENHARI
A
DETALHADA
EPC
VIABILIDA
DE
ECONÓMIC
MODELAGE
M
FINANCEIRA
Legal and Financial Structuring
FSA ToS PPA
PACOT
E
FISCAL
ACORDO DE
FINANCIAMEN
TO
FECHO
FINANCEIR
O
Start
Construction
Ano
MOZAMBIQUE
TRANSMISSION BACKBONE
[STE] x x x
MPHANDA NKUWA [HMNK -
1500 MW]
CAHORA BASSA NORTH [CBN
- 1245 MW) x x x x x x x x x x x x x x x
NA x x x x x x x x x
NA NA NA
NA STE
NA NA x x
2017
2017
2016
MASSINGIR [27 MW] x x x x x NA NA 2015
NA NA 2016 ALTO MALEMA [60 MW] x x x x
BENGA [450 MW]
MOATIZE [ 300 MW]
NCONDEZI [300 MW] x x x x x x x x x x x x x x x x x x
CENTRAL TÉRMICA MAPUTO
(CTM - 100 MW)
NA NA NA NA NA NA NA
RESSANO GARCIA [CTRG - 175
MW] x x x x x x x x x x x x
NA x x x x x x x x x x x x x x x x x x x x x x x x x x
NA x NA x x
NA
CSY x x NA x x x x x
2016
2014
2016
2015
X
MGTP (Temane - 400 MW) x x x x 2016
BOROMA [200 MW] x x x x x x x x x
Palma [ENI - 75 MW ]
GIGAWATT [109 MW]
ELECTROTEC [ 80 MW]
AGGREKO [222 MW] x x x x x x x x x x x x x x x x x x x
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
KUVANINGA [40 MW] x x x x x x x x x x x x x
X x x x x x x x
33 x x x x x x x x x x x x x NA NA
NA x x x NA x x x STE x NA x x x x x x x
2016
2015
2015
2015
X
2014
COD
Ano
2020
2021
2021
2018
2020
2019
2018
2019
2018
October
2018
2021
2017
2016
2017
Operação
2016

Table of Content
1. Macro economic indicators
2. Electricity Sector Industry
3. Present and future challenges
4. Natural Energy Resources
5. Generation Expansion Plan
6. Conclusion
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
34 com energia construimos futuro

Outlook Of Mozambique Power Sector
1.
The Electricity Sector will required more than 3 bUSD in the next 5 years to sustain energy demands
2.
Concessional, Commercial and Private equity funding will be required
3.
GoM will play a determinant role to Develop the ESI, including but not limited to project promotion
4.
There is in place adequate regulatory framework and conducive for Independent
Power Producers of electricity (IPPs)
5.
Gás will be a Game changer on ESI and determinant for Gás to Power initiatives
6.
EDM is going to a process of complex initiatives that needs special kills, competence and good Governance
7.
Cost reflective tariffs will be fundamental to sustain the Investment required
ELECTRICIDADE DE MOÇAMBIQUE, E.P.
com energia construimos futuro
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ELECTRICIDADE DE MOÇAMBIQUE, E.P.
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