Mauritius - EnergyMauritius - Energy

This is a best prospect industry sector for this country.

Overview
The government’s energy policy encourages the use of renewable and clean energy to reduce the country’s dependence on fossil fuels and decrease greenhouse gas emissions.  The government has announced plans to increase use of renewable sources of energy for electricity generation from the current 21 percent to 35 percent by 2025.  It aims to do this through wind farms, solar energy, biomass, wave, and waste-to-energy projects.  Bagasse (sugarcane waste) is currently the leading source of renewable energy (89 percent).  Mauritius derived its other renewable electricity generation from hydro, wind, landfill gas, fuelwood, and solar. 

The Central Electricity Board (CEB), which falls under the aegis of the Ministry of Energy and Public Utilities, is the sole agency for transmission, distribution, and sale of electricity in Mauritius.  CEB currently produces 40 percent of the country's total power requirement from four thermal power stations and eight hydroelectric plants.  The remaining 60 percent is purchased from independent power producers, mainly private generators from the sugarcane industry using bagasse and imported coal.

The government seeks international competitive bidding for most of its power projects and favors joint ventures between the local private sector and international firms.  However, in 2017, the CEB Act was amended to allow CEB (Green Energy) Co Ltd, a wholly-owned subsidiary of the CEB, to participate in power projects without having recourse to public procurement.  The aim of CEB (Green Energy) Co Ltd is to promote the development of renewable energy, particularly solar energy.

In his June 2019 budget speech, the Prime Minister announced the following measures pertaining to the power sector:  a plan to develop a renewable energy roadmap to facilitate private sector investment in the sector, a waste-to-energy project that will generate at least 20 MW of electricity, 14 MW worth of battery energy storage systems, a new Renewable Energy Generation Scheme to encourage photovoltaic power generation, and the installation of 75,000 smart meters over the next three years.

The GOM has also been undertaking legal and institutional reforms in the energy sector.  In 2016, the government created the Mauritius Renewable Energy Agency (MARENA) to promote the use of renewable energy in Mauritius.  MARENA is leading two major consultancy projects:  (i) United Nations Development Program – Green Climate Fund Project on “Accelerating the Transformational Shift to Low Carbon Economy in the Republic of Mauritius,” and (ii) Southern African Development Community Project Preparation and Development Facility on “Development of Guidelines and Standards for Renewable Energy Projects and a Funding and Incentive Strategy in Mauritius.”  In 2017, the GOM established a Utility Regulatory Authority (URA) to regulate electricity, water, and wastewater, but it is not yet fully functional.  The Energy Efficiency Act provides for product labeling and importation of energy efficient equipment, and the Building Control Act of 2011 aims to improve energy efficiency in building design.  In December 2018, the Smart Grid Roadmap for Mauritius was launched to help the CEB integrate new technologies in the power system that will enhance reliability, safety, and security.

(total market size = (total local production + imports) - exports)
Data Sources: i) Statistics Mauritius, ii) Embassy Estimates for 2019

Leading Sub-Sectors
·         Photovoltaic cells and technology
·         Solar energy technology for solar water heaters
·         Waste-to-energy plant for burning solid waste
·         Pumping of cold sea water for air conditioning
·         Wind turbines
·         Liquefied Natural Gas (LNG) projects
·         Green building design services and equipment
·         Energy efficiency projects and energy audits


Opportunities
Solar Technology:  Much of Mauritius receives almost year-round, intensive sunlight that makes solar photovoltaic (PV) energy an attractive energy option.  To achieve the target of 35 percent renewable energy by 2025, Mauritius plans to commission six more solar farms.  As of mid-2019, the total capacity committed for solar stood at 125.5 MWdc, of which 105 MWdc is owned by the private sector.  The government’s Home Solar Project, which includes the installation of 10,000 roof-top solar panels, was inaugurated in 2018.  A  loan of $10 million from the Abu Dhabi Fund for Development and the International Renewable Energy Agency (IRENA) is being used to implement this project, which reached its target of 2,000 households for the first year.

Waste-to-Energy:  Mauritius produces about 500,000 tons of solid waste per year and its only landfill site is nearly full.  Accordingly, in 2016 CEB issued a Request for Proposals for a 24 MW waste-to-energy project.  In his 2018 budget speech, the Prime Minister announced plans for a 20-plus MW waste-to-energy project.  A bid invitation was launched in 2018 but the tendering process for the project was unsuccessful.  The project was announced once again in the 2019-2020 budget speech.

Wind and Wave Energy:  The CEB has signed two Energy Supply and Purchase Agreements with two foreign firms for wind farm projects.  The first project for 9 MW was completed in 2016 by French company Quadran in joint venture with a local partner.  The second project of 29 MW, involving Indian firm Suzlon in joint venture with a local partner, reportedly stalled amid legal problems.  Preliminary research carried out by the Mauritius Research Council (MRC) shows potential for the development of offshore wind farms, as well as wave energy, in the waters of Mauritius and Rodrigues.  In 2015, Australian company Carnegie Wave Energy Ltd. signed a Collaboration Agreement with MRC to explore opportunities for commercial wave energy plants and experiments are ongoing.  In 2016, the Embassy in collaboration with MRC organized a workshop on offshore wind energy with an expert from U.S. company General Electric.  In 2017, MRC issued an Expression of Interest for consultants with experience in the development of offshore wind farms and has, to date, garnered 40 interested bidders.  In 2018, Italy signed a memorandum of understanding to provide up to $2.3 million to co-finance activities, including the promotion of tidal energy and the establishment of a pilot tidal energy project.  

Energy Efficiency/Green Building: As part of a general move away from fossil fuel-generated energy, opportunities exist for energy efficiency, audit, management, and advisory projects targeting large energy consumers.  The Building Control Act 2011 provides opportunities for consultancy services in designing “green” buildings and supplying related equipment and materials.  Energy efficiency is now one of the main criteria in the design of public buildings and in rental of private buildings.

Battery Storage:  In 2018, two grid-scale Battery Energy Storage Systems (BESS) of 2MW were installed, enabling high capacity storage of renewable energy.  In the 2019-2020 budget speech, the Prime Minister announced that Mauritius will launch tenders for an additional 14MW in battery storage systems to stabilize the network.

Deep Ocean Water Application (DOWA) Project:  Deep Ocean Water Application (DOWA) projects are often known in the United States as “O-tech” or Sea Water Air Conditioning (SWAC).  Local company Sotravic, through its subsidiary Urban Cooling Ltd, is developing a project to pump cold sea water from a deep ocean current into downtown Port Louis for air conditioning.  Sotravic retained U.S. company Makai Ocean Engineering to carry out the feasibility study and the conceptual design of the project.  In October 2016, Sotravic conducted offshore marine surveys to enable the company to proceed with the design and construction.  In 2017, Urban Cooling obtained an Environmental Impact Assessment License for the project.  In addition to air conditioning, Sotravic is considering the next phase of the project, which could involve using cold ocean water for bottling, aquaculture, seaweed cultivation, pharmaceutical, and cosmetic products.

Liquefied Natural Gas (LNG):  In 2017, the Ministry of Energy issued an international call for proposals for consultancy services for a feasibility study for liquefied natural gas.  In 2018, the Central Electricity Board launched a tender for the design, supply, installation, testing, and commissioning of a combined cycle gas turbine (CCGT) power plant.  The project has not been cancelled but, due to financing issues, it has stalled.  The governments of Mauritius and Madagascar have reportedly held high-level discussions in 2019 to discuss cooperation regarding the supply of LNG.  In the 2019 budget speech, the Prime Minister announced the setting up of a regional value chain for LNG as well as partial financing for the CCGT project.

Partnering with Mauritian Firms in Africa:  Several Mauritian firms are currently involved in or investigating renewable energy projects, particularly hydropower and PV solar farms, in Kenya, Rwanda, Burundi, Madagascar, and Ghana.  U.S. firms could partner with Mauritian companies to implement energy projects on mainland Africa with the support of Power Africa.  Launched in 2013, Power Africa is a market-driven, U.S. Government-led public-private partnership created to double access to electricity in sub-Saharan Africa.
 It offers private sector entities the tools and resources needed to do business in Africa’s power sector.  In 2016, the Electrify Africa Act institutionalized Power Africa.  More information can be found via the Power Africa toolbox and other opportunities offered by Power Africa.

Web Resources
Ministry of Energy & Public Utilities – Energy Sector
Statistics Mauritius – Energy and Water
Central Electricity Board
Energy Efficiency Management Office
U.S. Commercial Service, Johannesburg, South Africa
Power Africa