MOTRACO : Powering Progress Through Energy Partnerships

As a pioneering force in Mozambique’s energy landscape, MOTRACO exemplifies how to harness the nation’s substantial power generation capabilities, positioning it as a leader in electricity transmission and promoting regional integration. General Manager, Adérito Sousa, highlights the organisation’s journey and collaborative efforts.

POWERING PROGRESS THROUGH ENERGY PARTNERSHIPS

Mozambique has significant power generation potential with a diverse range of sources at its disposal, including hydroelectricity, natural gas, solar, and wind.

This repertoire elevates the country to a significant and influential role in Southern Africa’s energy sector, highlighting its strategic importance and capacity to shape the region’s energy supply.

Mozambique ranks first in the Southern African Power Pool (SAPP), boasting an estimated capacity of approximately 20,000 megawatts. The government, meanwhile, has a plan to achieve universal electrification by 2030.

Notably, MOTRACO stands out in this sector. Established in 1998, the organisation operates as a joint venture (JV), equally owned by Electricidade de Moçambique (EDM), Eskom Holdings SOC Ltd (Eskom) from South Africa, and Eswatini Electricity Company (EEC).

The JV was motivated by the need to improve the region’s electricity transmission infrastructure and strengthen energy integration amongst the countries involved.

Remarkably, the first of its kind in Southern Africa, MOTRACO is also a public-private partnership (PPP) that brings together government and private-sector resources to drive regional development.

“Over the past 25 years, we have been recognised as a success story in the energy sector,” proudly introduces Adérito Sousa, General Manager.

MOTRACO has managed to supply large quantities of electricity from Eskom to the Mozal aluminium smelter in Maputo continuously for 25 years, whilst also transporting it to EDM and EEC.

Furthermore, the organisation is tasked with managing and ensuring the ongoing operation of high-speed digital telecommunications (telecoms) infrastructure across borders.

“Since operations began, we have achieved our objectives – providing high-quality power and playing a strategic role in the region’s electricity transmission,” he continues.

EMPOWERING CONNECTIONS

Beyond its primary role of transporting and supplying electricity, MOTRACO has installed fibre-optic substation infrastructure alongside its power lines to bolster its activity.

The two strategically located substations, each operating at 400 kilovolts (kV), are connected by a network of 132 kV and 400 kV transmission lines, ensuring efficient energy transfer across the region.

The operation and maintenance of this network is overseen by MOTRACO, therefore guaranteeing dependable performance.

“With reliability at the forefront, our role is essentially to ensuring our three customers receive the highest quality service from us and our lines are always available, well-maintained, and fully functional.

“This integration allows us to serve some telecoms customers, thus extending our business scope beyond electricity supply,” Sousa emphasises.

Moreover, MOTRACO recently reached a significant milestone last year – its 25th anniversary.

“Continuous operation and success over the years stand as testament to the vision that originally brought the organisation to life, involving collaboration between countries, governments, and national utilities,” he prides.

Despite doubts about their capability to collaborate, each party ultimately succeeded in achieving their goals.

“The support from international banks and financiers has been instrumental, as evidenced by the reliability of key clients like Mozal, EDM, and EEC, who have honoured their commitments to us.”

This mutual trust has allowed MOTRACO to fulfil its obligations to its own financiers and investors, demonstrating that the initial vision and objectives have been successfully met.

“Each of our three partners holds an equal share, which ensures a good balance of power and consensus,” Sousa explains.

“Despite being neighbours from different countries, facing different challenges with varying levels of development – like South Africa’s Eskom and the smaller utilities of EDM and EEC – the companies manage to collaborate effectively.”

NAVIGATING COMPLEXITIES

Currently, MOTRACO faces various operational challenges in the Southern African energy and utility sector, both specific to its regional scope and more general.

The organisation operates in three countries, requiring it to navigate three distinct legal systems and jurisdictions, which adds complexity to the technical management and maintenance of its infrastructure.

“Although there are some similarities between the nations, the regional nature of the company means that any technical issues need a coordinated approach. This ensures that the entire system functions smoothly as a single entity, rather than operating on a country-by-country basis,” Sousa details.

Furthermore, MOTRACO faces added operational challenges due to varying levels of technical capability across the network, which can hinder its ability to respond effectively to major issues.

“We must create tailored systems and strategies to address resource disparities,” he urges.

In addition to these specific operational hurdles, MOTRACO faces broader challenges common across Southern Africa, most notably, vandalism.

“Situations arise where infrastructure, such as tower structures, is vandalised or stolen, compromising system performance. To combat this, we collaborate with local authorities and engage communities living near its infrastructure,” Sousa tells us.

“By establishing corporate social responsibility (CSR) programmes to uplift local economic conditions, we seek to foster better relationships and mitigate perceptions of threat.”

This approach underscores the importance of community involvement in protecting infrastructure.

ACCESS FOR ALL

There is significant room for improvement in Southern Africa’s access to electricity, particularly in Mozambique.

Currently, approximately 65 percent of the population has access to electricity, which is primarily concentrated to urban areas, whilst power supply in the country’s rural communities remains disproportionately low.

“The Government of Mozambique has prioritised electrification as a key objective, aiming to enhance access for its citizens. To achieve this, it has been actively encouraging both public and private investors to undertake projects within the electricity sector. A variety of incentives are in place to attract such investments.

“As part of this ecosystem, there is great potential for further opportunities and the need for companies to adapt their operations and strategies to align with market demands and circumstances. Our focus remains on identifying and capitalising on these opportunities for growth and development in the energy sector,” Sousa concludes optimistically.

In the context of a rapidly evolving energy landscape, characterised by fluctuations in demand, regulatory changes, and the need for sustainable practices, Sousa acknowledges that whilst challenges persist, MOTRACO remains committed to innovation and adaptability.

Through strategic initiatives and collaboration, the organisation aims to not only assist the national utilities of Mozambique and Eswatini to meet their growing electrification needs but also lead the way towards a more integrated energy future in the region.

With a strong foundation built over 25 years, MOTRACO will continue to serve its clients with the same high-quality that has defined the organisation since its inception, powering progress and fostering development for decades to come.

MOTRACO PARTNER