Econonomics of Energy and Environmental Policy

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The Roles of Government and the Public Utility in Achieving Universal Access to Electricity

Abstract:
Although Mozambique is blessed with abundant fossil fuel and renewable energy resources, achieving the national goal of universal access to electricity by 2030 is a formidable task. This paper describes the current energy sector landscape in the developing nation of Mozambique and provides an on-the-ground account of the conceptual framework guiding the public utility in working towards the universal access goal. In particular, we describe the trade-offs faced by the public utility, Electricidade de Mozambique (EDM), as it attempts to operate as a viable efficient business (the commercial mandate) and achieve universal access (the social mandate), by 2030. The paper is organized into four sections, starting with a historical background, moving into a description of the access challenges from the utility's perspective, then performing a comparison between the proposed utility reform path and the standard model of power system reform, and ending with a discussion of the risks and opportunities.
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JEL Codes:O13: Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products, O31: Innovation and Invention: Processes and Incentives, Q41: Energy: Demand and Supply; Prices


Keywords: universal access, electricity, Mozambique, reforms, policy

DOI: 10.5547/2160-5890.8.1.mart


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Published in Volume 8, Number 1 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.


 

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