Maputo: Mozambique is currently facing a pivotal decision regarding its energy future. On its northern coast, substantial offshore gas projects hold the promise of significant revenue. Simultaneously, Mozambique possesses vast untapped potential for hydroelectric, solar, and wind energy.
According to Deutsche Welle, the dilemma in Mozambique highlights a broader debate: should developing countries follow the fossil fuel-driven growth model, or can they bypass it and transition directly to clean energy? Historical data shows industrialized nations amassed wealth through coal, oil, and gas, contributing significantly to global emissions. Major polluters like the United States, the European Union, and China have set a precedent that some leaders in Africa and Asia feel is unfair to deny developing economies.
Philipp Trotter, a professor in sustainability management, emphasizes that while it may seem fair for poorer countries to utilize fossil fuels, the economic implications are complex. The competitiveness of Mozambique's gas in the future global market remains uncertain as major economies aim to reduce emissions by 2050, potentially leading to decreased demand for fossil fuels.
In contrast, Kenya has emerged as a renewable energy leader, generating nearly 90% of its electricity from geothermal, hydro, and wind power. The Kenyan government invested heavily in geothermal energy in the 1990s and early 2000s, using public funds and development-bank loans to establish a foundation before attracting private investment.
However, replicating Kenya's model in countries like Mozambique or Senegal may prove challenging due to financial constraints and lower credit scores. Each country's energy transition pathway depends on factors like domestic versus export use of fossil fuels and economic diversification.
India's experience further illustrates the complexity of energy transitions. Despite significant investments in renewable energy, coal still dominates its power generation, driven by rising energy demand and economic considerations.
To aid developing nations in transitioning to renewables, wealthier countries could play a crucial role in addressing the steep upfront costs. At the UN climate talks in 2024, a new climate finance goal of at least $300 billion per year by 2035 was set, though many developing nations argue this is insufficient.
For Mozambique, the choice between gas and renewables may ultimately hinge on the willingness of wealthy nations to invest in a sustainable energy future.