Source Energia: 10 Years Building Mozambique’s Clean Energy Future
After a decade of operating in Mozambique, Source Energia reflects on its journey and the impact it has been making on the country’s energy sector. From implementing decentralised solar solutions to developing a pipeline of over 800 MW in solar, wind and storage projects, the company has played an active role in transforming the national energy landscape.
In this interview, Pedro Coutinho, CEO of Source Energia, shares the company’s vision and explains how its work has helped to accelerate the energy transition in Mozambique, whilst promoting local development.
Source Energia has been active in Mozambique for a decade. How did you start and what has been your journey?
We entered Mozambique in 2015, when national electrification was still below 40% and the power sector faced structural constraints – limited generation capacity, high system losses, and heavy reliance on hydropower.
From the outset, we aligned with the Government’s long-term vision for the sector. Our focus was on delivering practical, high-impact solutions: starting with solar home systems for underserved communities and C&I projects for industry, before scaling into utility-scale generation.
This progression reflects both market evolution and our own learning curve. Today, our portfolio includes structural partnerships with Globeleq and operational assets such as Cuamba Solar, plus an advanced pipeline of over 800 MW across solar, wind, and battery storage.
None of this would have been possible without operating in a supportive environment, where our partnerships with the Ministry of Energy (MIREME), Electricidade de Moçambique (EDM), the regulator Autoridade Reguladora de Energia (ARENE), and the investment promotion agency Agência para a Promoção de Investimento e Exportações (APIEX) have consistently been constructive and collaborative.
What guides your strategy today?
Our strategy is anchored in Mozambique’s core energy priorities: security of supply, energy transition, regional supply, management of the energy mix, cost competitiveness, and universal access by 2030.
Hydropower still represents the majority of Mozambique installed capacity, which creates exposure to hydrological variability. Our focus is therefore on complementary solutions – solar, wind, and storage – that improve system reliability and reduce overall system costs.
We prioritise understand the real challenges of EDM and select projects that:
- Strengthen grid resilience and reduce technical losses
- Enable competitive tariffs under least-cost planning principles
- Support Mozambique’s position as a regional energy exporter within the Southern African Power Pool
The objective is to deliver projects that are not only bankable, but system-relevant—creating value both nationally and regionally.
What’s next for Source Energia?
After 10 years of disciplined growth, we are finalising a major capital raise to support the next phase of development.
This includes a commitment of over US$50 million to be deployed at Source Energia platform level, to fund our equity share in the ongoing development and construction of a pipeline of over US$800 million of solar, wind and battery projects in Mozambique. The goal is to bring a portfolio of bankable assets to financial close over the coming 6-8 years.
Mozambique is increasingly positioned as a key player in Southern Africa’s energy transition, and we intend to build a position as a market player in that process.
With new investors on board, what are your regional ambitions?
Our new investors bring a strong Lusophone focus, which aligns well with our experience and operating model. We see clear opportunities to expand across SAPP markets, particularly in markets with similar characteristics: hydro dependence, growing demand, and evolving regulatory frameworks.
Financing in these markets is notoriously challenging. How do you make it work?
Financing remains one of the main bottlenecks, particularly in frontier markets. Our advantage lies in bridging two worlds: development finance institutions and local utilities.
We structure projects using blended finance – combining concessional capital, grants, and commercial funding – to achieve bankability while maintaining affordability.
A key part of this is aligning with the needs of Electricidade de Moçambique (EDM). We focus on solutions that improve their financial position, including:
- Cost-optimised tariffs
- Firming capacity to stabilise supply
- Loss reduction
- Export revenues through regional trade
This alignment is critical to unlocking sustainable investment.
You’ve partnered with strong international players. Can you highlight key relationships?
Partnerships have been central to our growth.
We work closely with Globeleq, where we hold minority positions across multiple projects spanning wind, solar, and battery storage – including the Namaacha project, which is expected to be Mozambique’s first wind farm.
We have also partnered with JCM Power and Axian Group, each bringing complementary expertise and capital to accelerate project delivery.
Recently we announced the new collaboration with Electrifi that will bring the first step of Source Energia’s fund raising.
Do you have ambitions to take the lead on project development?
Yes. Taking a leading role in project development is a core part of our strategy.
We are already acting as a primary developer in several projects, working directly with off-takers – including EDM – and structuring projects end-to-end, from origination to financial close.
Increasing our ownership and control allows us to better manage risk, optimise project design, and capture more value.
What’s the outlook for Source Energia?
The outlook is strong. We combine a proven track record, a resilient operating model, and new financial backing.
Mozambique’s power demand is growing rapidly, electrification targets remain ambitious, and regional power trade is expanding. These dynamics create a clear opportunity for well-structured, bankable projects.
Our focus is to continue delivering solutions that are commercially viable, system-relevant, and scalable – positioning Source Energia as a long-term partner in Mozambique’s energy transition and a credible regional platform.
How do you see the role of events like RENMOZ in Europe in advancing Mozambique’s energy transition and dialogue with investors?
RENMOZ in Europe was a fantastic platform for the Mozambican Government to present its strategic vision in a very clear and structured way, and I want to congratulate all the institutions involved for that. It was also extremely well organised by ALER and AMER, so congratulations to them on a very successful edition. For us at Source Energia, it is a great example of what works: it brings investors and Mozambican sector players into the same room, creates real dialogue, and strongly supports our efforts to build partnerships and move projects forward. I trust the RENMOZ in Maputo 9-12 June will be a great event to bring the investors to see Maputo.
What would you say has made the biggest difference in delivering results across your portfolio?
Ultimately, it comes down to people. None of this would be possible without the strength and commitment of the team. Their dedication has been exceptional, and it’s clear that nothing gets done without the right individuals in place. What truly differentiates the team is their practical expertise in delivering projects in the local context – not just in theory, but through hands-on experience navigating real constraints and executing on the ground. Beyond delivering results, the team is actively transferring knowledge and mentoring others, ensuring that local talent grows alongside the projects. We are fortunate to have a team that consistently turns plans into results while building capability for the future.
Thank you team Source Energia.