Mozambique is a country with vast hydropower resources. The technical potential is estimated to be 12 500‑14 000 MW (Ministry of Mineral Resources and Energy) of which some 20% is currently exploited. 86% of the electricity in the country is produced from hydropower. Mozambique exports 90% of the produced electricity but at the same time the majority of the population depend on wood or charcoal to meet their energy needs. The electricity from the main grid is available for less than 10% of the Mozambican population. Considerable natural gas resources are also exploited for local electricity production
In addition to hydropower, solar and wind energy as well as biofuels have potential for increased exploitation. Some studies and pilots have already been carried out but the renewable energy resources are not yet exploited at a larger scale. Several pilot projects are ongoing, such as jatropha plantations for biofuels. The national biofuels policy (until 2015) and strategy has been adopted in 2009.
The Norwegian Government has supported Mozambique in the elaboration and implementation of a strategy plan for rural electrification and an energy master plan. It has also supported the establishment of the necessary institutional framework.