ELECTRICITY SECTOR INVESTMENT APPRAISAL MANUAL: AN APPLICATION CASE TO MOZAMBIQUE

Foroogh Nazari Chamaki () and Mikhail Miklyaev ()
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Foroogh Nazari Chamaki: Department of Economics Queen’s University, Canada, and Cambridge Resource International Inc.
Mikhail Miklyaev: Department of Economics Queen’s University, Canada, and Cambridge Resource International Inc.

No 2025-09, Development Discussion Papers from JDI Executive Programs

Abstract: The Electricity Sector Investment Appraisal Manual provides a comprehensive framework for the planning, appraisal, and development of electricity sector projects in Mozambique. It emphasizes the efficient allocation of public resources by ensuring that projects demonstrate economic viability, cost-effectiveness, and alignment with national energy and development goals. The manual provides robust methodologies for conducting Cost-Benefit Analysis (CBA) and Cost-Effectiveness Analysis (CEA), ensuring that electricity projects deliver maximum social and economic benefits. Illustrative case studies, such as the Manica Mini Hydropower Project (MHPP), demonstrate the application of the manual’s methodologies. This project serves as a practical example of addressing rural electrification challenges through renewable energy while aligning with national development strategies and Sustainable Development Goals (SDGs). Given Mozambique’s vulnerability to climate-related risks, the manual places significant emphasis on Climate Change Risk Screening. Projects are categorized into adaptation, resilience, and mitigation initiatives, with tools provided to integrate climate-proofing measures that ensure long-term sustainability. The Electricity Sector Investment Appraisal Manual is an essential resource for ensuring that electricity sector investments in Mozambique are economically viable, socially beneficial, and environmentally sustainable. By providing clear guidelines and practical tools, the manual enhances the quality of project development, improves transparency, and contributes to the country’s sustainable energy development.

Keywords: Cost-benefit analysis (CBA); Cost-effectiveness analysis (CEA); Climate change risk screening; Climate-proofing; Infrastructure sustainability; Mozambique; Sustainable Energy; Electricity sector (search for similar items in EconPapers)
JEL-codes: D61 Q42 Q48 Q54 (search for similar items in EconPapers)
Pages: 100 Pages
New Economics Papers: this item is included in nep-ene, nep-env and nep-ppm
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