Rural Electrification Club 7th annual meeting Miguel Diogo Mombassa, 23th to 26th March of 2010

ABOUT FUNAE FUNAE – Fundo de Energia is a public institution created by the Decree 24/97, of 22nd of July, and it is subordinated to the Ministry of Energy. FUNAE is managed by a Board of Directors that integrated members of Ministry of Finance, Ministry of Agriculture, Ministry of Industry and Commerce and Ministry of Energy. FUNAE is responsible for off-grid Rural Electrification in Mozambique. The grid extension is the role of the National utility (EDM).

ABOUT FUNAE FUNAE acts as: 1.Financial Agency 2.Implementing agency in the off-grid rural electrification areas (defined as areas where the grid is not planned for at least 5 years)

FUNAE – Financial Agency FUNAE as a lending institution that lends money for energy (not only electricity) projects, mainly in rural areas. FUNAEs participation is up to 80% of total cost of the project Terms: participation is up to 80% of the project cost and the impact is important factor in the financial analysis of the project. maximum duration is 10 years, interest between 11 and 16%, collateral of 100% of the loan value is needed Projects financed: Fuel stations Pumping systems for agricultural purposes Electric systems for touristic infrastructures

FUNAE – Implementing Agency FUNAE is responsable for the implementation of projects for off-grid electrification in rural areas by the use of diferent sources of energy, where the main sources are renewable energies. FUNAE has implemented electrification projects by: 1.Diesel Gensets 1.Photovoltaic sytemas 2.Microhydro systems (up to 10 MW) – two projects of 80 kW and 120kW)

PROJECT PLANNING FUNAE and EDM (Electricidade de Mocambique) are public organizations under the same umbrella: Ministry of Energy. FUNAE and EDM work closely in the preparation of their electrification plans to avoid overlapping of efforts. This cooperation results in the common understanding that to increase the access to electricity in rural areas, grid extension has to be complemented with decentralized options.

The main electrification projects implemented by FUNAE use solar generation, and it results in: 1.Electrification of public Facilities (schools & health centres) 2.Electrification of households and small shops 3.Instalation of Public Ligthing 4.Solar photovoltaic pumping systems for community use ELECTRIFICATION BY PHOTOVOLTAIC SYSTEMS

CHALENGES IN ELECTRIFICATION BY PHOTOVOLTAIC SYSTEMS 1.Improve the training of local technicians and beneficiaries 2.Make available spare parts in the project areas 3.Improve the mechanisms to avoid stealing and vandalism of the systems 4.Creation of standards for solar equipment to facilitate the monitoring process by FUNAE and work of the suppliers and supervisors.

Thank you for your kind attention Muito Obrigado