Energy Transition in Mauritius

The 2025 Budget and follow-on measures accelerate Mauritius’s shift away from fossil fuels.

ENERGY TRANSITION

7/6/2025

What changed in 2025, the policy pulse.

The 2025–2026 national budget foregrounded a reform-driven push on clean energy: measures focus on rapid scaling of solar capacity (utility and rooftop), incentivising private sector investment, and reinforcing the regulatory and institutional framework to speed deployment. The Economic Development Board summarised the budget as setting out “bold measures” to accelerate the energy transition.

Key, measurable policy pivots announced or reinforced in 2025:

  • A national commitment to raise the share of renewables in the electricity mix toward 60% by 2030 and to pursue a phased coal exit for power generation.

  • Financial and regulatory levers aimed at unlocking commercial capital for solar projects — public commentary points to a multi-billion-rupee investment pipeline focused on solar and distributed generation.

  • Explicit support for grid modernization, storage integration, electric mobility and exploratory financing instruments (including blue finance for ocean-linked opportunities).

Why 2025 matters: momentum and alignment

Mauritius’s 2025 measures are not standalone — they align national budgeting with the Renewable Energy Roadmap and sector planning developed by the Central Electricity Board and ministries. The Roadmap to 2030 already framed scenarios for substantially higher renewable shares and a more resilient, decentralized system; 2025 policy choices now add implementation funding and investor signals.

Practical implication: the policy environment is moving from planning to procurement and bankable projects — which shortens the timeline for investors seeking project pipelines and PPAs.

What’s being funded or unlocked

  • Solar acceleration (utility & rooftop): public agencies and the EDB signal strong support to unblock and scale solar — several communications reference a dedicated investment unlocking program for solar projects. This makes both large-scale arrays and aggregated rooftop portfolios attractive.

  • Storage & grid upgrades: to accommodate more intermittent renewables, storage (battery) projects and grid modernization are priority areas for public-private partnerships and commercial financing.

  • Electrification of transport: pilot and procurement programs for electric buses and EV infrastructure are part of the broader transition conversation — creating demand for charging networks, fleet conversions and vehicle financing models.

  • Blue energy & ocean-linked finance: 2025 discussions increasingly reference ocean energy and “blue finance” as an adjacent opportunity (research, pilot projects, blended finance). These are early-stage but strategically promoted.

Concrete investor opportunities

  1. Utility-scale solar farms — procurement windows and grid interconnection capacity are being prioritized. Look for tenders and partnership opportunities with the Central Electricity Board (CEB) and EDB.

  2. Distributed rooftop solar roll-outs — commercial real estate, hotels and villa estates (high electricity consumption) present near-term aggregated rooftop portfolios for lease or PPA models.

  3. Battery energy storage systems (BESS) — co-located with solar or for grid stabilization services; potential revenue from capacity and ancillary services.

  4. EV charging networks and fleet electrification — partnerships with municipalities and private fleets (tourism, shuttle services, government tenders).

  5. Green hydrogen & pilot R&D — longer-horizon but evolving interest in hydrogen for seasonal storage and industrial use; suitable for R&D, pilot financing and blended public-private projects.

  6. Blue economy / ocean energy pilots — early investors can join consortia that target tidal, wave or ocean-thermal pilots and blue finance instruments promoted by government and development partners.

Risk & due diligence checklist for investors

  • Grid readiness & interconnection queue: verify interconnection capacity and CEB queue timelines; delay risk exists if grid upgrades lag.

  • PPA frameworks & credit risk: confirm the counterparty and repayment/currency exposure clauses. Government signals are positive, but commercial contract design matters.

  • Land & environmental permitting: site selection must account for environmental consents and local land-use constraints — coastal projects will require additional approvals.

  • Technology & supply chain: battery supply chains and solar module availability can affect timelines and capex; consider local content or regional supply partnerships.

Practical next steps for investors or developers

  1. Engage EDB / CEB early — request project briefings, procurement calendars and confirmation of PPA terms.

  2. Build local partnerships — align with Mauritian developers, utilities, legal and EPC firms to accelerate permits and grid connections.

  3. Structure blended finance — combine concessional capital (for pilots) with commercial debt/equity for scale projects. Development partners and climate funds often back early-stage pilots.

  4. Explore aggregated rooftop portfolios — hospitality and high-consumption villas are logical partners for PPAs or lease models.

Outlook and Closing note

If implementation sticks to the newly signaled path, Mauritius could see a rapid scale-up of solar and storage capacity this decade, significantly reducing fossil fuel import dependence and opening export-grade know-how in renewables and grid management. The path to 60% renewables by 2030 is ambitious but now backed by clearer budgetary and institutional signals; execution speed will determine investor returns and new business models.

Mauritius’s 2025 policy and budget moves shift the energy transition from planning to procurement. For investors, the immediate playbook is:

  1. engage EDB/CEB for tenders and guidance

  2. form local partnerships

  3. target solar + storage and EV infrastructure for near-term returns, and

  4. evaluate pilot participation in green hydrogen or ocean energy for strategic positioning.

FAQ, quick answers for investors

Q1. Is Mauritius legally committed to 60% renewables by 2030?
The government and EDB have publicly signalled a pathway to substantially raise renewables to around 60% by 2030; this target is reflected in policy communications and the national roadmap.

Q2. Will the CEB sign PPAs with private IPPs?
Yes — the CEB/Ministry roadmaps and recent budget notes support private participation; confirm specific tender processes with CEB/EDB.

Q3. What financing instruments are available?
A mix: commercial debt/equity, blended finance for pilots (development partners), and potential government guarantees or incentives announced in budget materials.

Q4. Is storage a viable merchant business today?
Storage is increasingly viable due to grid services demand; income stacking (capacity, arbitrage, ancillary services) improves project economics but requires careful market design understanding.

Q5. Are there opportunities in hydrogen or ocean energy now?
These are emerging/early-stage. Government interest exists; pilot projects and R&D collaborations are the immediate entry points rather than large commercial deployments.

Q6. How fast could returns materialize?
Utility-scale solar + storage projects typically see commissioning windows of 12–36 months from final investment decision (depending on permitting and grid queue). Rooftop aggregation for hospitality may deliver faster returns through PPAs or leases.

The 2025 Budget and follow-on measures accelerate Mauritius’s shift away from fossil fuels — with ambitious renewable targets, large-scale solar investment plans, coal phase-out commitments and emerging blue-energy and electrification opportunities for private investors and developers. Bold actions are being taken to accelerate the energy transition, positioning Mauritius towards cleaner and more sustainable energy sources

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