HCB evaluates new energy sources

Cahora Bassa Hydroelectric (HCB) is developing a study to identify investment opportunities in the generation, transport and commercialization of clean energy, Moisés Machava, the company’s executive director, revealed during the Energy and Industry Summit held in Maputo last week (22-23 June). According to Machava, the aim is to assess the possibility of installing photovoltaic plants at various points in the Cabora Bassa reservoir, where their efficiency can be increased by cooling provided by the dam water.

The same study examines the possibility of building wind power plants, mini- and medium-sized hydro pumping plants and other technically and economically viable opportunities are being considered, he said. In his explanation, Moisés Machava emphasised that HCB would only proceed with investments if and when it was sure that they were “clean energy projects that are technically and economically viable”.

“We will try to look at the demands, potentialities, existing infrastructures – as in which possibilities we have for developing or updating the existing ones, always bearing in mind the need for them to be viable”.

HCB is being assisted in carrying out the study by a consultancy specialising in the field, whose name was not revealed to ‘Domingo’. The results of the study will be made known during this year as progress is made. Machava said that Cahora Bassa was committed to maintaining its current power generation system and keeping all the components associated with the generation and transport of energy robust, but, at the same time, “we think that in the future, in a short, medium and long term perspective, we must participate in the development of new clean energy sources”.

He added that the possibility of investing in alternative power sources would complement other efforts to be made for the development of the Mphanda Nkuwa dam project, in which, together with Electricidade de Moçambique (EDM), HCB has a mandate issued by the government.

In another development, Machava said that HCB continued to be an extremely important player in the energy sector in the country, and would maintain its collaboration in the elaboration and discussion of instruments that are being prepared under the coordination of the Energy Regulatory Authority (ARENE). He underlined that this strategic company [HCB] would continue to play a role in the production, transport and sale of electricity from the Cahora Bassa Dam, within the scope of the attributions assigned to it by the concession contract, strategic orientation and its statutes.

“We supply energy to the country through EDM, both for firm energy, which corresponds to the average energy that can be produced in a critical period with the worst scarcity conditions, and for non-firm energy, as we do for South Africa. and Zimbabwe through contracts,” he said.

He said that this was how HCB contributed to the national industry through the supply of reliability, quality electrical energy, “always looking for the company to be healthy, sustainable and compliant with all its tax obligations, paying taxes, concession fees and dividends to shareholders”.

Regarding the distribution of dividends, Machava stressed that, with the Mozambican state its main shareholder, with an 85% share, the company would continue to distribute dividends with an increasing rather than decreasing frequency.

“The company must continue to operate in a way that protects its strength and sustainability so that it continues to comply with all its obligations to shareholders, suppliers, tax authorities and social responsibility [beneficiaries],” he concluded.