It is increasingly acknowledged that the close interlinkage of water and energy requires adopting a Nexus Approach to sustainable resources management. Hydropower dams that also provide water services are among the most obvious showcases of this water-energy nexus. Using the case of Mozambique, a country which is characterized by i) still considerable development challenges, ii) high importance of hydropower for energy production, with iii) large unexploited capacities for hydropower and iv) in general low storage capacities for water, we here explore strategic opportunities for hydropower development within the water-energy-food nexus.

The analysis is based on a detailed survey of the state of the art of the energy sector in Mozambique and the policy context at national and international levels. We propose four areas for strategic expansion in the hydropower sector and analyse the current development and respective potential of the main river basins of Mozambique. The paper clearly demonstrates that future hydropower development must be nexus-oriented, thus considering the strong inter-relations with other water uses, its strategic positioning among other renewable energy sources as well as environmental and socio-economic dimensions and governance.

Five key integrators of management are identified, namely scale, the water-energy-food nexus, finance, governance and institutions and mitigating social and environmental detriment. Each of these integrators, besides impact as the ultimate integrator, interacts differently with the proposed four areas for strategic expansion in the hydropower sector, requiring a differentiated approach.