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Renewable Energy

Renewable Energy

Mauritius emits 0.01% of the Global GHG emissions, and yet, the country is committed to its pledge towards a sustainable and low-carbon economy through the implementation of a multi-fold strategy including:

Reducing greenhouse gas emission by 40% by 2030;
Increasing of the share of renewable energy in the electricity mix to 60% by 2030;
Phasing out of coal in the electricity mix by 2030;
Achieving energy efficiency gains of 10% by 2030;
Promoting a circular economy aiming at 70% landfilled waste reduction by 2030;
Decarbonizing end-user activities in the commercial, industrial and transportation sectors;
Promoting research, development, and innovation in the renewable energy sector; and,
Positioning of Mauritius as a launchpad for renewable energies in the region and Africa.

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0 %

CONTRIBUTION TO GDP (2023)

300 MW

RENEWABLE ENERGY
PROJECT PIPELINE

MUR 18 Bn

ESTIMATE INVESTMENT FOR PROJECT PIPELINE

800 MW

GENERATION CAPACITY (2023)

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- About
  Mauritius firmly intends to reduce its dependency on imported fossil by setting out an ambitious target of 60% of renewable energy in the electricity mix by 2025.
  The 2030 Renewable Energy Roadmap provides for an estimated investment of USD 1.35 billion in the sector by horizon 2030, encompassing generation from solar and floating solar, wind, biomass, hybrid renewable systems as well as marine renewables, among others.
  During the past few years, over 120 MW of installed capacity of wind and solar farms have been commissioned. A project pipeline of solar and solar with battery support (BESS) comprising projects of an aggregated capacity of 376.8 MW is underway necessitating an investment of USD 625 million. The materialisation of these projects will substantially increase the renewable energy contribution in the electricity mix to over 40%.
  Renewable energy projects in Mauritius can either be commissioned through the execution of public tenders or under the various schemes of the Central Electricity Board. Over 280 projects for a total effective capacity of 235 MW and 8 projects representing a total effective capacity of 140 MW are being incepted under the various CEB schemes and tenders respectively.
  The introduction of new schemes for the agricultural sector, ICT and other sectors will further boost capacity addition. Moreover, the 2024/2025 National Budget provides for measures incentivising storage which will further broaden the scope of opportunities in the sector.
  Following the adoption of the Biomass framework, the services of the African Legal Service Facility has been enlisted to finalise the model contract agreement for biomass. This will subsequently unleash new opportunities in the expansion of the biomass sector.
  In view of further consolidating the grid, an additional 20-Megawatt Battery Energy Storage System will be set up and 150,000 smart metres will be installed over the next two years.
- Opportunities
  RE Generation and Storage
  - Development of utility scale projects of above 2MW of installed capacity through international tenders including:
    - Solar PV farms
    - Wind farms
    - Renewable Energy Hybrid Facility- Solar PV coupled with battery storage
    - Renewable Energy Hybrid Facility- Solar PV coupled with Wind and battery storage
    - Renewable Energy Hybrid Facility- Biomass
  - Private led medium size projects under the Medium Distributed Generated System supporting businesses and commercial operators to generate electricity from R.E sources.
  - Private led small size projects under the Small Distributed Generated System supporting small businesses and households to generate electricity from R.E sources.
  - Generation of electricity from renewable energy sources by industrial users.
  - Storage of electricity as a service.
  - EPC contracting servicing end-users for private-led renewable energy solutions.
  - System design and technical services in the field of Renewable Energy.
  - Inception of a high calorific biomass value chain
- Incentives
  Government Support Agreement
  - Establishment of a Government Support Agreement to minimise risks of RE large projects.
  Concessional loans:
  - Concessional loan of MUR 350,000 at an interest rate of 2% for solar PV kits and battery system to individuals.
  - Industrial users eligible for a Carbon Neutral Loan Scheme including battery storage by the Industrial Finance Corporation of Mauritius (IFCM) at a preferential rate of 3 percent.
  Annual allowance in respect of the capital expenditure incurred on:
  - Acquisition of solar energy unit – 100%
  - Green technology equipment – 50% (straight line)
  Solar Energy Investment Allowance
  - Eligibility for individuals investing in solar energy units to deduct from net income the amount invested in a solar energy unit.
  Exempt Income for investment in green projects:
  - Exempt income from Interest derived by individuals and companies from –
    - debentures, bonds or sukuks issued by a company to finance renewable energy projects and which has obtained the relevant approvals.
    - a sustainability bond or a sustainability-linked bond issued in accordance with the bond principles, guidelines and handbooks administered by the International Capital Market Association to finance sustainable projects in Mauritius.
  Buy back Guarantee:
  - Prosumers under the SSDG and MSDG can produce up to 150% of their current electricity consumption with a buy back guarantee ranging from MUR 3.73 to MUR 4.20.
  - Industrial users under the CNIS are eligible to produce up to 150% of their current electricity consumption
  No restriction on production site
  - Industrial users, smart cities and telecom operators can produce electricity from renewable energy sources both onsite and off-site.
  Exemption from Land Conversion Tax:
  - Renewable Energy projects undertaken on agricultural land benefit from land conversion tax exemption both upon acquisition and lease.
  Valued Added Tax and Excise Duty
  - Photovoltaic systems are zero rated VAT and exempt from excise duty
  Premium Investor Certificate
  - Eligibility for premium investor certificate for –
    - Projects in innovative technologies and ESG for investments exceeding MUR 500 million.
    - the manufacture of materials for renewable energy technologies.
- About
  A multi-fold strategy is essential to match the ambitious target of Mauritius in greening up its economy. Consequently, it is imperative to target a net zero approach for the various economic sectors in Mauritius.
  Industrial operators in Mauritius are being incentivized to offset their energy consumption by producing electricity from renewable energy sources both onsite and offsite with a guaranteed buy back. Fiscal incentives and soft loans will accompany these industries in their energy transition process. These incentives have been extended to accommodate for battery storage.
  Moreover, an agrivoltaics scheme, providing for a purchase price of electricity produced at MUR 5 per KWH and an ICT Sector Carbon Neutral Scheme with purchase of excess electricity produced at Rs 4.20 per kWh are being introduced. Government has also launched a programme for equipping public buildings with roof top solar generation facilities.
  In its bid to green up the transportation sector, Government is encouraging transport operators, corporates and individuals to shift to electric mobility. To this end, excise duty on hybrid vehicles and electric vehicles have been removed and, a negative excise duty of 10% to a maximum of MUR 200,000 is being provided for the purchase of electric vehicles. Moreover, the bus modernization has been extended to June 2025. The CEB will also install prepaid public charging stations across the island.
  The Metro Express which is spearheading the modernization of the transport system in Mauritius will be extended with the development of a master plan develop to connect the Metro
  Express to the North, South, East and West.
  Private sector operators in the industrial and commercial sectors are being encouraged to adopt innovative solutions such as micro waste to value facilities and high efficiency equipment to green up operations and decrease their operational costs.
  The EDB is also working on the development framework for sustainable cities with strict environmental requirements and green buildings that will be subject to sustainable building certifications such as LEED, BREEAM and Africa Star, among others.
- Opportunities
  - Private led medium size projects under the Medium Distributed Generated System supporting businesses and commercial operators to generate electricity from R.E sources.
  - Private led small size projects under the Small Distributed Generated System supporting small businesses and households to generate electricity from R.E sources.
  - Generation of electricity from renewable energy sources by industrial users.
  - Electric Vehicles solution providers.
  - Innovative green solutions supporting enterprises and real estate developers.
  - Manufacturing of R.E technology components.
  - Development of Agrivoltaics projects.
  - Certification and rating for sustainability projects.
- Incentives
  Solar Energy Investment Allowance
  - Eligibility for individuals investing in solar energy units to deduct from net income the amount invested in a solar energy unit.
  Concessional loans:
  - Concessional loan of MUR 350,000 at an interest rate of 2% for solar PV kits and battery system to individuals.
  - Industrial users eligible for a Carbon Neutral Loan Scheme including battery storage by the Industrial Finance Corporation of Mauritius (IFCM) at a preferential rate of 3 percent.
  - Leasing facilities of 3 percent per annum over 10 years to transport operators to acquire electric vehicles and charging infrastructure by IFCM.
  - Concessionary leasing at 3.5 percent per annum to companies renewing their company fleet to electric mobility only offered by IFCM.
  - A 0.5 percent loan of up to Rs 3 million to taxis and van operators over a period of 7 years for the purchase of electric vehicles by Development Bank of Mauritius.
  Annual allowance in respect of the capital expenditure incurred on:
  - Acquisition of solar energy unit – 100%
  - Green technology equipment – 50% (straight line)
  Exempt Income for investment in green projects:
  - Interest derived by individuals and companies from –
    - debentures, bonds or sukuks issued by a company to finance renewable energy projects and which has obtained the relevant approvals.
    - a sustainability bond or a sustainability-linked bond issued in accordance with the bond principles, guidelines and handbooks administered by the International Capital Market Association to finance sustainability linked projects.
  Buy back Guarantee:
  - Prosumers under the SSDG and MSDG can produce up to 150% of their current electricity consumption with a buy back ranging from MUR 3.73 to MUR 4.20.
  - Industrial users under the CNIS are eligible to produce up to 150% of their current electricity consumption
  No restriction on production site
  - Industrial users, smart cities and telecom operators can produce electricity from renewable energy sources both onsite and off-site.
  Exemption from Land Conversion Tax:
  - Renewable Energy projects undertaken on agricultural land benefit from land conversion tax exemption both upon acquisition and lease.
  Valued Added Tax and Excise Duty
  - Photovoltaic systems are zero rated VAT and exempt from excise duty
  Fast charger for electric car investment allowance
  - Individuals – Deduction from net income of expenditure on acquisition of fast charger for electric cars.
  - Corporates – Double Deduction from gross income of expenditure on acquisition of fast charger for electric cars.
  Claim on electric motor vehicles
  - Eligibility for individuals and corporates to claim for an amount of 10 per cent of the value of import or Rs200,000, whichever is lesser, on the import of electric motor cars or electric motor vehicles for the transport of certain goods
  Premium Investor Certificate
  - Eligibility for premium investor certificate for –
    - Projects in innovative technologies and ESG for investments exceeding MUR 500 million
    - The manufacture of materials for renewable energy technologies.
- About
  Decreasing energy consumption by adopting energy efficient technologies is fundamental to the energy transition of Mauritius. Mauritius aims at increasing its energy efficiency to 10% by 2030. To this effect the Energy Efficiency Management Office has taken a series of measures including classification and labelling of electrical appliances and lighting equipment, mandatory energy audits for large energy consumers, and the introduction of energy efficiency parameters in public procurement.
  Upcoming projects in the field of energy efficiency are as follows:
  - Introduction of Minimum Energy Performance Standards;
  - Development of a framework to promote Energy Performance Contracting in Mauritius;
  - Introduction of an Energy Efficiency Loan Scheme for the implementation of energy-saving measures, and;
  - The development of a de-risking facility for energy performance contracting in Mauritius.
- Opportunities
  - Energy efficiency management
  - Energy efficiency auditing
  - Energy efficient solutions
  - Energy efficiency engineering
  - Energy efficient technology providers (smart and AI based concepts)
  - Energy Performance Contracting
- Incentives
  Concessional Loan:
  Energy Efficiency Loan Scheme for the implementation of energy-saving measures by the DBM.
  Exempt Income for investment in green projects:
  - Interest derived by individuals and companies from –
    - debentures, bonds or sukuks issued by a company to finance renewable energy projects and which has obtained the relevant approvals.
    - a sustainability bond or a sustainability-linked bond issued in accordance with the bond principles, guidelines and handbooks administered by the International Capital Market Association to finance sustainability linked projects.
  Annual allowance in respect of the capital expenditure incurred on:
  - Acquisition of solar energy unit – 100%
  - Green technology equipment – 50% (straight line)
- About
  Mauritius ambitions to emerge as a regional leader in the development and testing of innovative renewable energy technologies. To this effect, the MARENA, in collaboration with the CEB launched the National Scheme for Emerging/Innovative Renewable Energy Technologies which allows the on-grid testing of renewable energy technologies.
  The first agrivoltaics farm of an installed capacity of 200 KW has been commissioned under this scheme and is being extended over 1 MW. Other projects, which are at different phases of implementation include high-altitude wind project (SKY sails), Waste to Hydrogen, HBOX (Hydrogen On-Board Generator), Waste to Energy & Ocean Thermal Energy Conversion.
  The Ministry of Environment, Solid Waste Management and Climate Change endorsed a request to secure technical assistance from the UN Climate Technology Center and Network (CTCN) for an Ocean Thermal Energy Conversion (OTEC) project in Q2 2024.
  Moreover, to address the issues of pressure on land resources resulting from large solar projects and our onshore limitation for wind energy a series of measures is being adopted:
  - The Danish Technology University has completed a pre-feasibility study on 100 MW offshore wind in Mauritius under the UN Sustainable Development Fund.
  - Feasibility studies on the potential for developing pumped hydro storage for existing hydro power plants and the conversion of existing thermal HFO plants to biodiesel.
  - Development of a Green Hydrogen Strategic Plan by the Ministry of Energy and Public Utilities
  - Feasibility for a pilot 2MW floating solar PV farm at tamarind falls reservoir.
- Opportunities
  - Research and development in renewable energy sector
  - On-grid testing of innovative RE technologies
- Incentives
  Exempt Income for investment in green projects:
  - Interest derived by individuals and companies from –
    - debentures, bonds or sukuks issued by a company to finance renewable energy projects and which has obtained the relevant approvals.
    - a sustainability bond or a sustainability-linked bond issued in accordance with the bond principles, guidelines and handbooks administered by the International Capital Market Association to finance sustainability linked projects.
  Annual allowance in respect of the capital expenditure incurred on:
  - Acquisition of solar energy unit – 100%
  - Green technology equipment – 50% (straight line)
  Buy-back guarantee:
  - Buy back guarantee for electricity produced under MARENA schemes during trial period.
  Possibility of Scaling:
  - Projects successfully completing their trial period have the possibility of scaling up through commercial contacts for purchase of electricity.
  Funding
  - Eligible Research and Development projects can secure partial funding from the Mauritius Research and Innovation Council.
- About
  Africa is termed as a land of opportunities for Renewable Energies with potential solar capacity estimated at 10 TW, abundant hydro (350 GW), wind (110 GW), and geothermal energy sources (15 GW). The African Development Bank has ranked energy in its top 5 high priorities areas and launched the New Deal on Energy for Africa with an overarching goal of universal energy access in Africa. This will be achieved through expanding grid power by 160 GW and connecting 130 million people to the grid.
  Mauritius, as an integral part of the African Continent has excellent bilateral ties with African Countries. Moreover, the local expertise of Mauritius in the energy sector coupled with the offering of its International Financial Centre can be leveraged upon for structuring and management of energy projects in Africa.
  In the banking sector, Mauritius has embraced the Equator Principles. The Government of Mauritius and regulatory bodies have laid a robust foundation to cater for the issuance of green bonds and to better identify the risks and opportunities arising from the transition to a low-carbon and more circular economy.
  Likewise, the Stock Exchange of Mauritius launched the Stock Exchange of Mauritius Sustainability Index (SEMSI) in 2015 which outlines the ESG reporting requirements for listed companies.
  Mauritius can also be considered for the drafting, framing and upholding of energy contracts for African based projects, mostly for the commercial and dispute resolution aspects. Mauritius can also be used a cost effective and efficient arbitration centre for energy contracts.
- Opportunities
  - Structuring and management of energy project
  - Investment in green bond
  - Structuring and management of energy contracts.
- Incentives
  Exempt Income for investment in green projects:
  - Interest derived by individuals and companies from –
    - debentures, bonds or sukuks issued by a company to finance renewable energy projects and which has obtained the relevant approvals.
    - a sustainability bond or a sustainability-linked bond issued in accordance with the bond principles, guidelines and handbooks administered by the International Capital Market Association to finance sustainability linked projects.
  Premium Investor Certificate
  - Eligibility for premium investor certificate for –
    o Projects in innovative technologies and ESG for investments exceeding MUR 500 million
  Global Headquarters Administration License
  - Minimum annual operating expenditure of USD 100,00
  - Minimum employment of 10 professionals
  - 8-year tax holidays
  Global Legal Advisory Services License
  - At least 2 foreign lawyers qualified to practice in their home jurisdiction
  - At least 2 full time officers’ residents in Mauritius
  - 5-year tax holidays

Incentives & Schemes

Through a panoply of schemes and unique incentives offered, EDB Mauritius supports the expansion and growth of business operations as a way to enhance substantive and value-added economic activities in Mauritius.

Regional Headquarter Scheme

Air Freight Rebate Scheme

Inland Aquaculture Scheme

Yacht Promotion Scheme

Regional Headquarter Scheme

Inland Aquaculture Scheme

“Medew Holdings was established to produce, process and market avocado domestically and for export. Mauritius was identified as a country which is politically and economically stable. With the strong support of the EDB and the Mauritian government, within a short timeframe, Medew Holdings Ltd has been able to successfully import avocado seeds and plants for cultivation”

Medew Holdings Ltd

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Setting up in Mauritius means joining a long list of world-class businesses that have chosen our country as their regional base of operations. These exceptional businesses include: