Under Construction

NEWS

Mozambique’s Power Export Earnings Drop 34% YoY in Q1 on Water Shortage

Hydropower Plant

Mozambique’s electricity export revenue fell by 34 per cent through March, to US$104.3 million, due to a lack of water in the Zambezi basin, according to official data.

According to information from the central bank, which includes statistical data on Mozambican exports in the first quarter, this figure compares with US$158.6 million recorded during the same period in 2024.

“The drop in revenue from this product was due to the interruption in energy supply, caused by water restrictions in the Zambezi River, as well as maintenance work carried out at one of the main suppliers,” states a Bank of Mozambique document, referring to the Cahora Bassa Hydroelectric Plant — one of the largest dams in Africa, which accounts for nearly 80 per cent of Mozambique’s electricity production.

Lusa reported in May that electricity production in Mozambique is expected to fall by 1.3 per cent in 2025 due to ongoing maintenance work at HCB.

According to official government estimates for 2025, “a decrease in electricity production of approximately 1.3 per cent is expected, influenced by the need for generator maintenance and the reduction in the hydrological cycle” at HCB, which “represents approximately 78.7 per cent of the production and export structure.”

Mozambique is expected to produce 19,197.8 gigawatt-hours (GWh) of electricity this year, with 15,504.4 GWh provided by HCB in Tete province, in the centre of the country. This represents a 4.1 per cent decrease compared to 2024 and marks the lowest annual production in four years.

On a broader scale, electricity production from hydroelectric sources in Mozambique — including Cahora Bassa — is projected to decline by 4.1 per cent in 2025. In contrast, electricity generated by thermal power plants is expected to increase by 17.6 per cent, with nearly half of that output coming from the natural gas-fired Central Térmica de Ressano Garcia (CTRG), which is forecast to produce 1,196.3 GWh in 2025 — a 7.4 per cent increase over 2024.

Production from solar farms in Mozambique is expected to fall by 5.8 per cent, to 95.5 GWh in 2025, according to the same report.