Assessing the Key Factors Influencing Renewable Energy Generation in Mozambique: A Structural Equation Modelling Analysis

Abstract

Structural equation modelling analysis was performed to identify various variables that influence the growth of Renewable Energy Production (REG) in Mozambique. The study revealed that the government's policies regarding renewable energy generation in Mozambique are of moderate quality. However, by implementing skillfully crafted policies and plans, there is a possibility for additional progress and growth. The progress of renewable energy initiatives in Mozambique is significantly influenced by the investment climate for such projects. Although the government has established a favourable environment for investors, it primarily caters to foreign investors rather than local and private investors. Environmental considerations significantly influence the growth of renewable energy generation (REG) in Mozambique. This study highlighted the need to consider environmental issues throughout the planning and execution of REG projects. The lack of technical and managerial proficiency in a particular area can be resolved by importing foreign specialists, either on a temporary or permanent basis. Concurrent with the global goal of shifting to clean energy-producing technologies, this study attempts to identify and assess the variables that influence the growth and development of renewable energy businesses in Mozambique. Setting priorities for energy efficiency can uncover several economic prospects, fostering the growth of a market for innovative solutions and facilitating the construction of specialized firms in this field. Consequently, this will entice investment from both domestic business owners and investors from other countries.