Energy Security in Mauritius: Import Dependence, Transition Risks, and Self-Sufficiency Pathways

Mauritius Real Outlook 2025–2029 • Section 40

Energy Security and Self-Sufficiency Pathways: Between Capacity Expansion and Structural Dependence

Examining Mauritius' energy system revealing 80%+ import dependence persisting with no post-2016 data, transport sector consuming 45% total energy ignored in policy focus on electricity, renewable capacity expansion to 543 MW delivering only ~135 MW continuous output due to intermittency, $840M infrastructure investment requiring 7-8 year payback, stranded fossil assets creating transition trap, and three 2029 scenarios showing realistic case 22-25% renewable generation with 78-80% import dependence—exposing energy security not as renewable deployment challenge but as comprehensive system transformation requiring demand reduction, transport electrification, transparent measurement, and political will to confront costs

The Permanent Condition of Energy Import Dependence

Energy security remains Mauritius' most binding structural constraint. As a small island economy with no domestic fossil fuel reserves, the country has historically relied on imported energy to power households, transport, industry, and services. This dependence, documented at over 80 per cent of total energy use in the mid-2010s, exposes the economy to external price shocks, foreign exchange volatility documented in Section 36, and supply disruptions entirely beyond domestic control. Despite repeated policy commitments to diversification and renewables, Mauritius enters the mid-2020s with an energy system that remains overwhelmingly import-dependent, only partially diversified, and—critically—insufficiently documented in public statistical form.

Net Energy Imports (Mid-2010s)
80%+
Share of total energy use
World Bank data 2012-2016, then discontinued
Years Without Updated Data
9+
Last official figure: 2016 (83.7%)
No publicly accessible data 2017-2025
Annual Fuel Import Bill (Est.)
$450M
Coal, oil, petroleum products
15-20% of total import bill

The central challenge is therefore not merely one of energy transition, but of energy sovereignty: the degree to which Mauritius can reduce exposure to external fuel markets while maintaining reliable, affordable power for a services-heavy economy. This extends the "illusion of transition" analysis introduced in Section 38.2, where renewable deployment has diversified sources without materially reducing import dependence. The same pattern characterises energy policy at large: policy frameworks signal intent, capacity statistics suggest progress, yet structural reliance on external fuel markets persists—and the data infrastructure required to track whether this is changing has been allowed to lapse.

A governance signal, not just data inconvenience: World Bank and WITS indicators show net energy imports accounting for more than 80 per cent of total energy use: approximately 84–85 per cent between 2012 and 2015, declining marginally to 83.7 per cent by 2016. Crucially, no publicly accessible official data exist for energy import dependence after 2016—a nine-year gap that parallels measurement failures in Sections 38 (food imports) and 39 (ocean economy). This is not technical limitation but institutional choice: in the absence of updated metrics, citizens, investors, and policymakers cannot independently assess whether the most fundamental energy security indicator has improved over the past decade.

What can be stated with confidence is that there is no evidence of a structural break away from import reliance. All official planning documents continue to frame energy policy around managing, rather than eliminating, exposure to imported fossil fuels. According to publicly available summaries from the International Energy Agency, Mauritius' primary energy supply remains dominated by imported coal and oil, with modern renewable sources contributing roughly 10 per cent of final energy consumption.

Energy Use Structure: The Transport Blindspot

Understanding Mauritius' energy vulnerability requires looking beyond electricity generation to total energy use across all sectors. This reveals a critical blindspot in current policy discourse: the overwhelming focus on electricity obscures the fact that transport fuel—gasoline, diesel, aviation fuel—accounts for nearly half of all energy consumed, and remains 100 per cent import-dependent with no near-term substitution pathway.

Total Energy Use by Sector (Not Just Electricity)

~75% Non-Electric Transport dominates
Transport Fuel (Gasoline/Diesel/Aviation) ~45%
Electricity Generation (All Uses) ~30%
Industry Direct Fuel Use ~15%
Other (Residential/Commercial Non-Electric) ~10%
Total energy use structure estimated from IEA energy balances, sectoral fuel consumption data, and transport statistics. Electricity represents final energy delivered to all end users (residential, commercial, industrial). Transport fuel includes road vehicles (~450,000 fleet), aviation (international/domestic), and marine. Industry direct fuel covers thermal processes not electrified. Precise official sectoral breakdown not published annually—illustrative proportions consistent with small island developing state patterns.

The implications of this structure are profound and rarely acknowledged in policy discourse. Even if Mauritius achieved 100 per cent renewable electricity—an unrealistic scenario given grid constraints documented below—the country would still remain 70 per cent dependent on imported fossil fuels for transport, aviation, industrial processes, and non-electric uses. Electricity represents only 30 per cent of total energy demand. This means that renewable electricity deployment, while necessary, can at maximum displace roughly one-third of import dependence. The remaining two-thirds requires fundamentally different strategies: transport electrification, aviation fuel substitution, industrial process transformation, and demand reduction.

Vehicle Fleet (2023 Est.)
450K
Private cars, commercial vehicles, buses
Consuming ~45% of total energy
Electric Vehicle Penetration
<1%
~3,000 EVs estimated (2024)
25,000 new registrations annually
Transport Electrification Target
None
No published EV adoption targets
No charging infrastructure plan disclosed
Current energy policy operates as if electricity were synonymous with total energy. Yet electricity is merely 30 per cent of the problem. This structural misalignment ensures that even successful renewable electricity deployment—itself constrained by technical limits explored below—cannot deliver energy sovereignty. Transport fuel remains the elephant in the policy room: 45 per cent of energy use, 100 per cent import-dependent, and almost entirely absent from strategic frameworks.

Electricity Generation Mix and Thermal Dominance

Within the electricity sector specifically, the picture is one of gradual but limited diversification. Fossil fuels—coal and oil—continue to generate more than four-fifths of electricity output, with bioenergy (primarily bagasse from sugar production) contributing around 10 per cent and solar, hydro, and other modern renewables accounting for the remainder.

Mauritius Electricity Generation Mix (2024 Estimate)

~80% Fossil Fuels Thermal dominance
Coal (Imported) ~45%
Oil Products (Imported) ~35%
Bagasse (Seasonal, Declining) ~10%
Solar/Hydro/Other Renewables ~10%
Electricity generation mix estimated from IEA summaries, grid-level operational data, and government planning documents. Bagasse contribution seasonal (sugar harvest July-December), averaging ~10% annually. Coal and oil combined represent thermal generation baseload. Modern renewables (solar, hydro, wind) ~10% reflecting slow expansion from negligible baseline pre-2015. Precise official annual time series not published 2015-2025.

The persistence of thermal dominance has direct implications for cost structures, emissions exposure, and vulnerability to fuel price volatility. Coal and oil are imported entirely, meaning that roughly 80 per cent of electricity generation remains tied to global commodity markets. When international energy prices spike—as during 2021-2022 and again in 2024 following geopolitical disruptions—these shocks transmit immediately into domestic energy costs, feeding inflation pressures documented in Section 36 and straining household budgets already burdened by food import costs documented in Section 38.

The Bagasse Question: Seasonal Biomass and Sugar Sector Decline

Bagasse from sugar production provides seasonal baseload contribution but faces structural constraints. Bagasse is only available during the sugar harvest season (July through December), meaning it cannot serve as year-round baseload. During off-season months, fossil fuel generation must compensate, creating operational complexity and limiting annual displacement. More fundamentally, bagasse generation is tied directly to sugar sector health—and the sugar sector has been in secular decline for decades, with land under cultivation shrinking, productivity stagnating, and economic viability increasingly questionable given land constraints documented in Section 37 and competition from global low-cost producers.

Expanding bagasse generation would require either agricultural intensification (increasing yields per hectare) or expanding cane cultivation—both unlikely scenarios. Land is scarce, water stressed (Section 37), and alternative land uses (urban development, tourism infrastructure, conservation) compete directly with agriculture. As sugar production declines, bagasse availability will likely follow, meaning this 10 per cent renewable contribution may erode rather than grow. Policy documents acknowledge this risk but offer no concrete pathway for sustaining bagasse generation long-term.

Capacity Expansion: Investment Costs and Payback Reality

The most concrete forward-looking evidence of transition comes from the Ministry of Energy and Public Utilities 2025/26 Programme Estimates, which for the first time publish explicit capacity targets. These represent meaningful infrastructure commitment, though understanding the full cost and payback timeline requires looking beyond capacity numbers to investment requirements and fuel savings projections.

Technology Capacity Target 2027/28 Unit Cost (MW) Total Investment Required Technical Notes
Solar PV (Utility-Scale) 300 MW $1.0-1.2M/MW ~$330M Requires 750+ hectares land, grid integration, 20-25% capacity factor
Wind (Onshore) 150 MW $1.5-2.0M/MW ~$270M Coastal sites, tourism/conservation conflicts, 25-30% capacity factor
Bagasse (Upgrades) 93 MW $0.4-0.6M/MW ~$47M Depends on sugar sector viability, seasonal only (July-Dec)
Battery Storage 50 MW / 100 MWh $350-450K/MWh ~$40M Essential for intermittency smoothing, frequency support, peak shaving
Grid Reinforcement System-wide N/A ~$150M Transmission upgrades, distributed generation integration, smart grid
TOTAL INVESTMENT 543 MW ~$840M Capital required 2024-2028 for target capacity
Investment estimates based on international renewable energy cost benchmarks (IRENA, IEA), adjusted for island context (higher shipping, installation costs). Solar PV utility-scale: $1.0-1.2M/MW typical 2024 costs. Wind onshore: $1.5-2.0M/MW (island premium). Battery storage: $350-450K/MWh for lithium-ion grid-scale. Grid reinforcement estimate conservative given distributed generation integration requirements, smart metering, transmission upgrades for remote generation sites. Total $840M represents 2024-2028 capital requirement—equivalent to ~5-6% of GDP deployed over 4 years, or ~$650-700 per capita. No detailed project-level budget publicly disclosed.

Payback Analysis: How Long to Recover Investment?

The $840 million investment must be evaluated against fuel import savings to assess economic viability and payback period. Current annual fuel import bill for electricity generation estimated at ~$350-400 million (coal, oil, diesel for power plants). If 543 MW renewable capacity displaces 25 per cent of fossil fuel generation—a realistic scenario given capacity factors explored below—annual fuel savings would be approximately $85-100 million. At this savings rate, payback period for the $840M investment would be 8-10 years, not accounting for operations and maintenance costs, storage replacement cycles, or financing costs.

The payback calculation reveals economic tension: Renewable infrastructure requires massive upfront capital ($840M) with payback over 7-10 years, while fossil fuel imports represent annual recurring costs ($400M+) with zero capital but continuous foreign exchange drain. The transition case is economically superior long-term but fiscally challenging short-term, requiring either large government borrowing, concessional financing, private investment under power purchase agreements, or some combination. Without transparent financing plans—none published—assessing fiscal sustainability of the transition remains difficult. This echoes measurement failures in Sections 38-39: infrastructure plans announced without corresponding fiscal frameworks or public debt implications disclosed.

The Capacity-Generation Gap: Why 543 MW ≠ 543 MW

Perhaps the most critical distinction in understanding renewable electricity deployment is the gap between nameplate capacity (maximum theoretical output under ideal conditions) and actual generation (electricity produced and consumed over time). For fossil fuel plants, these figures largely converge: coal and oil plants run continuously at baseload, achieving 70-85 per cent capacity factors. For intermittent renewables—solar and wind—the gap is vast and often obscured in policy discourse focused on capacity targets rather than generation outcomes.

The Capacity-Generation Reality Gap

Nameplate capacity creates illusion of parity that actual output does not deliver

Nameplate Installed Capacity (2027/28 Target)
Fossil Thermal
634 MW
54% capacity
Renewable
543 MW
46% capacity
Actual Continuous Generation Output (Accounting for Capacity Factors)
Fossil Thermal
~500 MW
79% output (80% CF)
Renewable
~135 MW
21% output (25% CF)
Capacity factors: Fossil thermal 70-85% (conservative 80% used), solar PV 18-25% (island tropics 20-22% typical), wind 25-35% (coastal sites 28-30% typical), weighted renewable average ~25%. Fossil baseload operates continuously except maintenance. Solar produces zero at night, reduced during cloudy periods, seasonal variation. Wind intermittent, weather-dependent. Result: 543 MW renewable nameplate delivers ~135 MW continuous output equivalent, displacing only ~20-22% of generation, not the 46% capacity share suggests. Ministry targets publish capacity, not generation projections—creating illusion of greater fossil displacement than physically delivered.

Why This Gap Matters for Policy Credibility

The capacity-generation distinction is not academic—it determines whether renewable targets actually reduce import dependence or merely create appearance of progress. A solar farm with 100 MW capacity might generate at 20-22 MW average output (20-22% capacity factor) given nighttime shutdown, cloud cover, and seasonal variation. Wind turbines face similar constraints: 150 MW wind capacity delivering ~40-45 MW continuous output.

This means that 543 MW renewable capacity by 2027/28 does not translate into 543 MW continuous generation displacing fossil fuels. At 25% average capacity factor, 543 MW delivers approximately 135 MW continuous equivalent—roughly 20-22% of a 600-650 MW generation system, not the 46% that capacity share implies. Fossil fuels continue generating 75-80% of electricity despite renewable capacity reaching 46%.

This is the core of what Section 38.2 termed the "illusion of transition": capacity expansion statistics create appearance of progress without demonstrating structural import displacement. Until the Ministry publishes generation projections alongside capacity targets—specifying expected kWh output, fossil fuel volumes displaced, and foreign exchange saved—the extent of actual energy security improvement remains unknowable to external observers. Capacity targets without generation outcomes function as political signals rather than verifiable milestones.

Renewable Resource Potential and Physical Limits

Even setting aside capacity factors and grid integration challenges, Mauritius faces hard physical constraints on how much renewable energy can be deployed. Unlike narratives suggesting unlimited renewable potential, small island geographies impose specific limits: land availability for utility-scale solar, suitable wind sites free of tourism and conservation conflicts, rooftop solar constrained by building stock, and grid capacity to absorb distributed generation.

Mauritius Renewable Potential Ceiling (Technical Maximum)

Utility-Scale Solar: ~400 MW maximum. Requires approximately 2.5 hectares per MW installed (accounting for panel spacing, access roads, inverters). 400 MW = 1,000 hectares (10 km²), representing ~0.5% of total land area (2,040 km²). However, this land must be flat, unforested, not in conservation zones, not prime agricultural land, and near transmission infrastructure. Given competing land uses documented in Section 37—urban expansion, tourism infrastructure, remaining agriculture, water catchments—finding 1,000+ hectares for solar farms represents significant challenge. Current target of 300 MW (750 hectares) already stretches available suitable land.

Rooftop Solar: ~150 MW maximum. Limited by building stock (residential, commercial, industrial), roof structural capacity for panel weight, grid connection capacity at distribution level, and economic viability (payback periods vary widely by tariff structure and consumption patterns). Current rooftop penetration <50 MW suggests reaching 150 MW ceiling would require near-universal adoption on suitable roofs—unlikely given cost barriers and grid integration constraints.

Wind (Onshore): ~200 MW maximum. Coastal sites offer best wind resources, but these overlap heavily with tourism zones, conservation areas (particularly southern coast ecological sensitivity), and residential areas where noise/visual impacts limit acceptance. Inland sites have weaker wind resources. Current target 150 MW approaching realistic limit without major tourism/conservation trade-offs.

Hydro: ~15 MW existing, no expansion potential. Rivers small, seasonal flow variability high, suitable dam sites already exploited. Water stress documented in Section 37 limits further hydro development.

Bagasse: ~100 MW theoretical maximum tied to sugar production. Current ~93 MW target near ceiling, and declining sugar sector may reduce availability over time.

Total Technical Ceiling: ~865 MW renewable capacity. Current target of 543 MW represents 63% of this maximum. Reaching the full ceiling would require resolving all land conflicts, accepting tourism/conservation trade-offs, near-universal rooftop solar adoption, and sustained sugar sector investment—none of which appear politically or economically likely in near term. The renewable transition has a hard ceiling below which policy ambition meets physical reality.

This resource ceiling has profound implications for long-term energy strategy. Even if Mauritius successfully deployed every technically feasible renewable megawatt—865 MW at 25% capacity factor delivering ~215 MW continuous output—this would displace at most 30-35% of current electricity generation, not 100%. Fossil fuel backup capacity must remain to cover renewable intermittency, evening peaks when solar drops, and low-wind periods. The notion of achieving 100% renewable electricity on current technology is physically constrained, not merely economically or politically challenging.

Grid Constraints, Storage Requirements, and the Stranded Asset Trap

The Ministry's programme documents explicitly acknowledge technical challenges posed by intermittency and peak-load demand, repeatedly referring to the need for battery energy storage and grid resilience. This acknowledgement is significant—it reflects institutional recognition that renewable deployment without storage and grid modernisation risks instability rather than security. Yet quantitative details remain sparse, exposing a critical gap between recognition and specification.

Storage: What's Actually Required vs What's Planned

No quantitative figures are published on existing battery storage capacity (likely minimal, under 10 MWh), planned storage additions in megawatts or megawatt-hours, or storage requirements for specific renewable penetration levels. International experience with isolated island grids suggests that achieving 30-40% renewable generation (not capacity) requires substantial storage:

• Daily smoothing of solar variability and evening peak management: 50-100 MWh minimum for Mauritius' ~450-500 MW peak demand grid. Solar output drops to zero after sunset (~6-7pm) while residential demand peaks (cooking, lighting, air conditioning), requiring stored solar energy to be dispatched during evening hours.

• Frequency support and grid stability for high intermittent penetration: Additional 20-40 MW fast-response batteries for frequency regulation as thermal baseload share declines, preventing blackouts from sudden generation/demand imbalances.

• Multi-day backup during prolonged low-solar/low-wind periods: Cyclones, extended cloud cover, or multi-day low-wind conditions require either multi-hundred MWh storage (economically prohibitive) or maintaining fossil backup plants at operational readiness. Most small island grids choose the latter—meaning fossil capacity cannot be retired even as renewable capacity expands.

The investment table in Section 40.3 estimated ~$40M for 50 MW / 100 MWh storage—sufficient for basic daily smoothing but inadequate for comprehensive grid stability at high renewable penetration. Achieving 40-50% renewable generation would likely require 200-300 MWh storage, costing $70-120M, not currently budgeted or planned in disclosed documents.

The Stranded Asset Problem: Fossil Capacity That Cannot Retire

As renewable capacity expands to 543 MW by 2027/28, total system capacity reaches 1,177 MW—more than double peak demand of ~500 MW. This creates a paradox: Mauritius will have enormous overcapacity on paper, yet cannot retire fossil plants because they remain essential for:

• Spinning reserves providing frequency support that batteries cannot yet fully replace at scale

• Backup generation during multi-day renewable droughts (cyclones, extended cloud/calm periods)

• Seasonal gaps when bagasse generation drops off-season

The stranded asset trap: Existing coal plants have 10-15 years remaining useful life and ~$200-300M book value. These plants will run at progressively lower utilization rates (capacity factors dropping from 70-80% to perhaps 40-50%) as renewables displace baseload—but cannot be fully retired or mothballed. Lower utilization means higher unit costs (fixed costs spread over fewer kWh), creating upward pressure on electricity tariffs even as fuel consumption decreases. Who bears these stranded asset losses: utilities (if public, taxpayers absorb), consumers (via higher tariffs), or government (via subsidies)? No published analysis addresses this distributional question, yet it will dominate energy policy debates through 2029 as the tension between renewable expansion and thermal backup requirements becomes financially acute.

Cape Verde—closest comparable pursuing 50% renewable electricity—explicitly plans to maintain 60-70% of fossil capacity operational as backup and frequency support even at peak renewable deployment. Denmark, though grid-connected to continental Europe allowing power imports during renewable droughts, similarly maintains substantial dispatchable capacity (gas plants) that run at reduced utilization. Mauritius, with an isolated grid and no interconnection option, will face even greater need to preserve fossil backup—meaning the 634 MW thermal capacity in 2027/28 will remain largely intact operationally even as it generates declining share of kWh.

Transport Electrification: The 45% Blindspot

Returning to the total energy structure documented in Section 40.1, transport fuel remains the single largest energy end-use at ~45% of total consumption, yet receives minimal attention in published energy strategy. The vehicle fleet of ~450,000 is overwhelmingly fossil-fueled, with electric vehicle penetration under 1% (~3,000 EVs estimated in 2024). Annual new vehicle registrations average ~25,000, meaning that even aggressive EV adoption would take 15-20 years to turn over the fleet majority.

What Would Transport Electrification Require?

Ambitious 2030 Target (Not Currently Adopted): 30% EV fleet share by 2030 = ~135,000 EVs total, requiring ~20,000 EV sales annually (80% of new sales) starting 2025. This would require: Purchase price parity (currently EVs cost $10-15K premium vs equivalent fossil vehicles), comprehensive charging infrastructure (~2,000 public chargers, $5-7M investment), residential charging incentives, and competitive electricity tariffs making EVs economically attractive vs gasoline.

Grid Impact: 135,000 EVs assuming 15,000 km annual driving and 200 Wh/km efficiency = ~400 GWh additional electricity demand annually, or +50-70 MW average load. This would increase total electricity demand ~10-12%, requiring equivalent generation capacity additions beyond the 543 MW renewable target—capacity not currently planned. EV charging would also create new evening peak challenges (most charging occurs 6pm-10pm when solar output zero), requiring additional storage or demand management.

What's Not Addressed: Commercial vehicles (trucks, buses) where EV technology less mature and range constraints more binding. Aviation fuel (international flights ~15-20% of transport energy) with no near-term electrification or sustainable aviation fuel (SAF) pathway. Marine fuel (cargo, fishing, tourism boats) similarly lacking substitution options. Even with aggressive passenger vehicle electrification, transport sector likely remains 50-60% fossil-dependent through 2030.

No published government strategy documents specify EV adoption targets, charging infrastructure rollout plans, or integration of transport electrification into electricity generation planning. The Ministry of Energy focuses almost exclusively on electricity supply; transport falls under separate ministry with no apparent coordination on energy implications. This institutional fragmentation—echoing patterns in Sections 38 (food), 39 (ocean), and 36 (external accounts)—ensures that the single largest energy end-use remains strategically orphaned, unplanned, and unmeasured.

The Demand Side: Efficiency as the Forgotten Strategy

All preceding analysis has focused on energy supply: how to generate electricity, what fuels power vehicles, where renewables fit. Yet energy security has a second dimension rarely emphasized in policy discourse: demand reduction. International energy efficiency experience demonstrates that reducing consumption is typically faster, cheaper, and more certain than adding supply—yet receives far less policy attention and investment than generation projects that offer ribbon-cutting opportunities.

Efficiency Potential in Mauritius Context

Conservative estimates suggest Mauritius could reduce electricity demand 15-20% and total energy consumption 10-12% through efficiency measures costing fraction of supply-side investments:

Building Energy Codes: Requiring minimum insulation standards, efficient air conditioning, LED lighting, and solar water heating in new construction and major renovations could reduce residential/commercial electricity 8-10%. Investment: $20-30M in incentive programs and enforcement capacity. Savings: ~50-60 MW equivalent avoided generation capacity ($55-75M supply-side investment not needed), plus ongoing fuel savings.

Appliance Efficiency Standards: Minimum performance requirements for air conditioners, refrigerators, water heaters, and other major appliances—as exist in most OECD countries—could reduce electricity demand 5-7%. Investment: Regulatory framework development and market enforcement (minimal cost, under $2M). Savings: ~30-40 MW equivalent avoided capacity ($35-50M), plus annual fuel savings.

Industrial Efficiency Programs: Technical assistance and financing for energy audits, motor upgrades, process optimization, waste heat recovery in manufacturing, hotels, and commercial facilities. Investment: $15-25M grant/loan programs. Savings: 3-5% total energy use, particularly thermal fuels in industrial processes.

Peak Demand Management: Time-of-use electricity tariffs creating price signals to shift consumption away from evening peaks, smart meters enabling demand response, and utility programs incentivizing load shifting. Investment: $40-50M for smart meter deployment system-wide. Savings: 10% peak demand reduction (50 MW avoided peaking capacity worth $75-100M), improving grid stability and reducing need for expensive peaking plants.

The efficiency-vs-supply calculation: Total investment in comprehensive efficiency programmes: ~$75-105M over 4-5 years. Generation capacity avoided: ~110-130 MW equivalent. This represents $700-800K per MW avoided—less than half the cost of building new solar capacity ($1.0-1.2M/MW), and one-third the cost of wind ($1.5-2.0M/MW). Efficiency improvements deliver immediately (no construction lag), carry no fuel costs, produce no emissions, and compound over time as technology turnover incorporates higher standards. Yet efficiency receives perhaps 5-10% of the policy attention and investment compared to generation projects. This reflects political economy: efficiency is diffuse, incremental, and lacks symbolic project-opening events. Solar farms and wind turbines offer visible monuments to energy transition; insulation standards do not.

The absence of published national energy efficiency strategy, mandatory building codes with energy performance requirements, or appliance standards represents a profound missed opportunity. Efficiency is not merely complementary to supply expansion—it directly reduces the scale of renewable infrastructure needed, shortens payback periods, lessens grid integration challenges, and provides the fastest pathway to reducing import dependence. That it remains policy afterthought signals disconnect between energy security rhetoric and actual strategic priorities.

Foreign Exchange Drain and Macroeconomic Transmission

One of the most consequential aspects of energy import dependence documented throughout this section is transmission into balance-of-payments stress (Section 36), inflation pressure, and fiscal vulnerability. Fuel imports—coal, oil, petroleum products—represent an estimated $420-480M annual outflow, or 15-20% of total merchandise imports. This makes energy the second or third largest import category after food and manufactured goods, yet it receives less systematic measurement and policy attention than either.

Annual Foreign Exchange Drain: Fuel Import Costs 2020-2025

2020
~$380M
2021
~$480M
2022
~$550M (oil price spike)
2023
~$470M
2024
~$420M (est.)
2025
~$450M (proj.)
Cumulative 2020-2025 (est.): ~$2.75 billion in foreign exchange spent on imported energy. At current renewable deployment pace, 2030 cumulative total will exceed $5 billion—equivalent to ~30-35% of GDP in FX outflows for imported fuel alone.
Fuel import costs estimated from UN Comtrade merchandise trade data (HS codes 27: mineral fuels), World Bank commodity price indices, and domestic energy consumption patterns. 2022 spike reflects global oil/coal price surge following geopolitical disruptions. Estimates conservative—may understate total energy import bill if petroleum products for transport not fully captured. Official government time series not published, preventing precise annual tracking. Figures illustrative of scale and volatility—actual costs may vary ±10-15%.

This foreign exchange drain has multiple transmission channels: electricity generation costs rise when coal and oil prices spike, putting upward pressure on utility tariffs; transport fuel costs feed directly into CPI via petrol prices and indirectly through freight costs affecting all goods; and the balance of payments documented in Section 36 absorbs the import bill, constraining foreign exchange available for other imports or debt service.

Despite this clear macroeconomic exposure, no publicly accessible official dataset quantifies energy price pass-through, fuel import elasticities, or standardized impact assessments linking international commodity prices to domestic inflation. IMF Article IV reports refer qualitatively to energy shocks but do not publish numerical estimates for Mauritius. This echoes measurement failures across Sections 38 (food imports), 39 (ocean economy), and 40 (energy security): major structural vulnerabilities tracked less rigorously than politically visible sectors like tourism or financial services exports.

What We Don't Know: Energy Data Gaps

Building on systematic data gap enumeration in Sections 39 (ocean economy) and throughout Section 40, this consolidation reveals what remains unmeasured, unpublished, or unavailable for rigorous energy security assessment. These gaps prevent independent evaluation of whether stated transition goals are being achieved and expose opacity as institutional choice rather than technical constraint.

UNPUBLISHED OR DISCONTINUED: Core Energy Security Indicators

Net energy import dependence 2017-2025 — Last published 2016 (83.7%), no updates despite being World Bank standard indicator, 9-year data gap
Total energy use by sector (transport/electricity/industry/other) — No official annual breakdown showing where energy consumed, preventing targeted efficiency policies
Renewable generation share (actual kWh output vs capacity MW) — Capacity targets published, but not generation projections or fossil fuel displacement estimates
Fuel import bill annual time series — Total cost of coal/oil/petroleum products not systematically published, preventing FX impact assessment
Energy price pass-through elasticities — No published estimates linking international oil/coal prices to electricity tariffs or CPI inflation
Battery storage capacity (existing and planned MW/MWh) — No quantitative figures on grid-scale storage deployed or targeted, essential for intermittency management
Grid integration studies for high renewable penetration — Technical assessments of frequency stability, backup requirements, congestion points not publicly disclosed
Capacity factors for solar/wind installations — Actual generation efficiency vs nameplate capacity unreported, preventing realistic output projections
Renewable infrastructure financing plan — $840M investment 2024-2028 documented in Section 40.3, but no published financing strategy (debt/equity/PPAs/grants)
Energy subsidy fiscal costs — Government spending on electricity/fuel subsidies, tariff cross-subsidies not transparently consolidated
Transport electrification targets and infrastructure plans — No published EV adoption goals, charging network rollout, or grid capacity planning for transport
Energy efficiency potential and programme targets — No national efficiency strategy, building code energy requirements, or appliance standards—potential documented Section 40.8
Emissions intensity trends (CO₂/kWh electricity, transport emissions) — Carbon footprint not tracked over time despite climate commitments Section 37
Data gaps identified through systematic review of World Bank WDI, IEA databases, Statistics Mauritius, Ministry of Energy programme documents, IMF Article IV reports. Items represent standard indicators published by comparable jurisdictions (Iceland, Cape Verde, Denmark, Seychelles). Discontinuation of net energy import series after 2016 particularly consequential—it's a World Bank core development indicator, suggesting deliberate deprioritization rather than technical incapacity. Combined opacity across import dependence, fuel costs, generation outcomes, storage requirements, and financing plans prevents independent assessment of whether energy transition reducing vulnerability or merely creating appearance of progress.

These gaps concentrate precisely where transparency would expose uncomfortable realities: persistence of import dependence despite capacity expansion, unknown extent of fossil fuel displacement, unmeasured fiscal and FX costs of energy shocks, uncertain technical feasibility of ambitious targets, and absence of comprehensive strategies for transport (45% of energy use) and efficiency (15-20% potential reduction). Energy policy operates as narrative rather than accountable programme—ambitions declared without mechanisms for verification.

Comparative Island Energy Transitions

To contextualize Mauritius' trajectory, examining how other island economies with similar constraints have approached energy transition—and critically, how they measure and disclose progress—reveals not just technical differences but institutional choices about transparency and accountability.

Jurisdiction Energy Context Renewable Achievement Measurement & Disclosure
Iceland Population ~380K, geothermal and hydro abundance, grid-isolated ~100% renewable electricity (geothermal + hydro baseload, not intermittent) ✓ Annual energy balance published, ✓ Generation mix detailed, ✓ Import dependence tracked, ✓ Transport still 100% fossil (85% total energy)
Cape Verde Population ~560K, no fossil fuels, similar island constraints to Mauritius ~50% renewable electricity target 2030, 15 MW / 7.5 MWh storage specified, wind + solar ✓ National energy plan with quantified targets, ✓ Storage capacity published, ✓ Quarterly progress updates, ✓ Backup fossil capacity explicitly planned 60-70%
Seychelles Population ~100K, heavily tourism-dependent like Mauritius, import-reliant ~30% renewable electricity target 2030, solar + wind expansion, grid constraints acknowledged ✓ Annual energy reports, ✓ Import costs disclosed, ✓ Renewable share tracked yearly, ✓ Diesel backup explicitly budgeted
Denmark Population ~6M, grid-connected Europe, wind leader, relevant for technical modeling ~80% renewable electricity (wind dominant), extensive storage and interconnection ✓ Comprehensive grid integration studies, ✓ Capacity factors published, ✓ Storage roadmap detailed, ✓ Gas backup explicitly maintained
Mauritius Population ~1.3M, no fossil fuels, grid-isolated, services economy, climate-vulnerable ~10% renewable electricity current, 543 MW capacity target 2027/28, generation share unknown, transport 45% ignored △ Capacity targets published 2025 (first time), ❌ Import dependence discontinued post-2016, ❌ Storage not quantified, ❌ Generation projections absent, ❌ Financing plan undisclosed, ❌ Transport strategy missing
Comparative data from national energy agencies, IEA country profiles, World Bank databases. Iceland's success relies on baseload geothermal/hydro not replicable elsewhere—yet even Iceland's transport remains 100% fossil, showing electricity is insufficient for full energy sovereignty. Cape Verde and Seychelles more comparable in constraints, demonstrating transparency advantages: both publish multi-year plans with quantified storage, backup fossil capacity, and annual progress. Denmark included for grid integration modeling—explicit about maintaining gas plants for backup. Mauritius lags comparators not in ambition but in measurement, transparency, and comprehensive strategy integrating electricity/transport/efficiency.

2029 Scenarios and Strategic Assessment

What emerges from Sections 40.0 through 40.11 is an energy system characterized by incremental progress within a fundamentally unchanged structure. Renewable capacity is expanding, institutions like the Mauritius Renewable Energy Agency are strengthening, and grid constraints are being acknowledged. Yet these steps occur within a framework where the most important indicators remain unmeasured, structural dependence persists, and transport—the largest energy end-use—remains strategically orphaned.

To ground expectations realistically, three scenarios project where Mauritius' energy system is likely to land by 2029 given current trajectories, investment constraints, and physical limits documented throughout this section:

Optimistic
Best-Case Execution
Probability: ~25%
Renewable Capacity 543 MW
Actual Renewable Generation 28-30%
Fossil Dependence (Electricity) 70-72%
Total Energy Import Dependence 75-78%
Annual Fuel Savings $90-110M
Key Assumptions On-time delivery, 100 MWh storage, oil $70-80/bbl
Realistic
Probable Outcome
Probability: ~60%
Renewable Capacity 480 MW
Actual Renewable Generation 22-25%
Fossil Dependence (Electricity) 75-78%
Total Energy Import Dependence 78-80%
Annual Fuel Savings $60-75M
Key Assumptions Modest delays, 60 MWh storage, oil $85-95/bbl, partial grid upgrades
Pessimistic
Stressed Scenario
Probability: ~15%
Renewable Capacity 400 MW
Actual Renewable Generation 18-20%
Fossil Dependence (Electricity) 80-82%
Total Energy Import Dependence 80-82%
Annual Fuel Bill Increase +$150-200M
Key Assumptions Major delays, financing constraints, oil spike $110-130/bbl, grid limits
Scenario parameters based on: (1) Capacity delivery assuming 15-25% implementation lag common in infrastructure projects (optimistic: full target, realistic: 12% shortfall, pessimistic: 26% shortfall), (2) Generation shares using 25% capacity factor for renewables, (3) Oil price ranges reflecting IEA medium-term forecasts with geopolitical risk premium for pessimistic case, (4) Storage assumptions critical—realistic case 60 MWh inadequate for >25% renewable penetration without grid instability, (5) Fuel savings calculated vs $450M baseline import bill, with pessimistic case showing oil spike overwhelming renewable gains. Probability assessments subjective but grounded in comparative island renewable projects: optimistic case requires near-perfect execution (25% likelihood), realistic case reflects typical delivery patterns (60%), pessimistic combines financing/permitting delays with external shock (15%). All scenarios show total energy import dependence declining modestly at best—reflecting transport sector (45% energy) remaining unaddressed.

The Realistic Case: 78-80% Import Dependence in 2029

The most probable outcome by 2029 is the realistic scenario: 480 MW renewable capacity delivered (12% below target due to permitting, financing, and construction delays typical in infrastructure projects), generating 22-25% of electricity (not the 40%+ capacity share implies), with fossil fuels continuing to provide 75-78% of grid power. Total energy import dependence—accounting for electricity plus transport fuel documented in Section 40.1—declines marginally from 80%+ (2016 last data) to 78-80% (2029 projected).

This represents measurable progress: ~60-75 MW of fossil generation displaced, annual fuel import savings of $60-75M, reduced emissions of ~500-600 kilotonnes CO₂ annually. Yet structurally, Mauritius in 2029 will remain overwhelmingly import-dependent for energy, vulnerable to the same external shocks that characterized the 2010s and 2020s, and constrained by the same macroeconomic exposures documented in Section 36. The transition will have begun, but energy sovereignty will remain distant.

What the Scenarios Reveal About Governance and Strategy

The narrow range between optimistic (75-78% import dependence) and pessimistic (80-82%) scenarios is itself revealing. Even perfect execution of current plans delivers only modest improvement. This reflects the structural constraints documented throughout Section 40: electricity is only 30% of total energy (Section 40.1), capacity factors limit generation (Section 40.4), renewable resource potential has hard ceilings (Section 40.5), transport electrification is unplanned (Section 40.7), and demand-side efficiency remains unaddressed (Section 40.8).

Energy security framed purely as renewable electricity deployment is insufficient. It requires comprehensive system transformation: transport electrification with charging infrastructure and grid capacity planning, aggressive demand reduction through efficiency standards and building codes, transparent measurement enabling accountability, and above all political will to confront costs—upfront capital requirements, tariff implications, stranded fossil assets, and distributional impacts. Current strategy pursues the politically comfortable path: announcing capacity targets, launching projects, avoiding hard choices about who pays and what gets retired. This produces incremental progress but structural continuity.

Five Strategic Imperatives for 2024-2029

First, restore comprehensive energy measurement and publish generation projections. Statistics Mauritius must resume annual publication of net energy import dependence (discontinued 2016), total energy use by sector, and fuel import costs. The Ministry of Energy must publish renewable generation projections (kWh, not just MW capacity), fossil fuel displacement estimates, and foreign exchange savings targets. Without transparent metrics, policy evaluation is impossible and accountability weak.

Second, develop integrated transport electrification strategy. Transport represents 45% of energy use yet remains strategically orphaned. A credible 2030 target—30% EV fleet share requiring ~20,000 annual EV sales—must be supported by charging infrastructure rollout (2,000 public chargers), financing mechanisms to address purchase price premium, and electricity generation planning accounting for +50-70 MW additional demand. This requires cross-ministry coordination currently absent.

Third, prioritize demand-side efficiency as least-cost pathway. Implementing building energy codes, appliance standards, and industrial efficiency programs can reduce electricity demand 15-20% at $75-105M investment—less than half the per-MW cost of solar generation and one-third wind. Efficiency delivers immediately, carries no fuel costs, produces no emissions, and reduces renewable infrastructure requirements. Yet receives minimal policy attention—a strategic misalignment favoring visible supply projects over cost-effective demand reduction.

Fourth, publish renewable infrastructure financing strategy. The $840M investment 2024-2028 documented in Section 40.3 requires transparent financing plan: debt vs equity, public vs private, concessional finance from climate funds, power purchase agreement structures, fiscal implications. Without disclosure, assessing whether transition is fiscally sustainable or creates debt vulnerabilities (Section 36) remains impossible. Investors and development partners require this transparency; its absence suggests financing strategy is incomplete or politically sensitive.

Fifth, confront stranded asset problem and transition costs. As renewable capacity expands, fossil plants will run at lower utilization but cannot be fully retired—creating upward tariff pressure from fixed costs spread over fewer kWh. Who bears these costs: consumers via higher tariffs, government via subsidies, utilities via write-downs? This distributional question will dominate energy politics through 2029 yet receives no published analysis. Transparent assessment of stranded assets, transition costs, and distributional impacts is prerequisite for durable political consensus supporting energy transformation.

Final Assessment: The Gap Between Aspiration and Execution

Mauritius' energy system at mid-decade is best described as incrementally transitioning within structurally unchanged constraints. Renewable capacity is expanding—from negligible pre-2015 to 543 MW targeted 2027/28, a genuine achievement. Yet this expansion occurs within a framework where total energy remains 78-80% import-dependent, transport fuel (45% of energy) lacks substitution pathway, demand reduction potential (15-20%) is ignored, and core measurement indicators discontinued after 2016.

The most important strategic conclusion is that energy security cannot be achieved through electricity sector action alone. Electricity represents 30% of total energy. Even 100% renewable electricity—physically unrealistic given grid constraints—would leave Mauritius 70% fossil-dependent. Energy sovereignty requires comprehensive approach: renewable electricity expansion yes, but also transport electrification, aviation fuel substitution, industrial efficiency, building codes, appliance standards, behavioral change, and transparent measurement enabling accountability.

Current strategy pursues comfortable incrementalism: capacity targets without generation outcomes, electricity focus without transport strategy, supply expansion without demand reduction, and measurement gaps preventing accountability. This produces visible progress (solar farms, wind turbines, ribbon-cuttings) without structural transformation. By 2029, Mauritius will likely have more renewable capacity but similar import dependence, modest fuel savings but persistent external vulnerability, policy ambitions repeatedly announced but hard choices deferred.

Section 40 therefore closes by positioning energy security as the ultimate governance test: not merely technical challenge of installing panels and turbines, but political test of whether the state can sustain long-term strategy requiring upfront costs, distributional conflicts, and patient capital over electoral cycles. The data gaps are choices, not constraints. The capacity-generation disconnect is knowable, not mysterious. The transport blindspot is institutional fragmentation, not technical inevitability. What remains unresolved is whether Mauritius will build the comprehensive strategy—spanning electricity, transport, efficiency, finance, and measurement—required for genuine energy sovereignty, or whether energy policy will continue operating as aspirational narrative disconnected from verifiable outcomes, joining food imports (Section 38) and ocean economy (Section 39) as major structural vulnerabilities tracked less rigorously than their strategic importance warrants.

Section 40 establishes energy security as comprehensive system challenge not reducible to renewable electricity: 80%+ import dependence persisting from mid-2010s (83.7% 2016 last data, 9-year gap) with $450M annual fuel import bill (~15-20% merchandise imports, ~$2.75B cumulative 2020-2025). Transport consuming 45% total energy—gasoline/diesel/aviation for ~450K vehicle fleet <1% EV penetration—strategically orphaned with no published electrification targets/charging infrastructure/grid planning. Electricity only 30% total energy meaning even 100% renewable electricity leaves 70% fossil-dependent. Renewable capacity expansion meaningful: 351 MW 2024/25 rising 543 MW 2027/28 (192 MW additions, 55% growth) requiring ~$840M investment ($330M solar, $270M wind, $47M bagasse, $40M storage, $150M grid)—but capacity ≠ generation due intermittency. At 25% capacity factor 543 MW delivers ~135 MW continuous output displacing only 20-22% electricity generation not 46% capacity share implies, fossil remaining 75-80% grid power. Physical constraints documented: renewable resource ceiling ~865 MW maximum (utility solar 400 MW limited by 1,000+ hectares land Section 37, rooftop 150 MW building stock limit, wind 200 MW tourism/conservation conflicts, hydro 15 MW exhausted, bagasse 100 MW declining with sugar sector), current target 543 MW = 63% technical maximum. Stranded asset trap: fossil plants cannot retire despite low utilization—634 MW thermal capacity must remain operational for spinning reserves/backup/frequency support creating unit cost pressure. Demand-side efficiency potential 15-20% reduction at $75-105M investment—less than half solar per-MW cost—ignored favoring visible supply projects. Three 2029 scenarios: optimistic (543 MW, 28-30% generation, 75-78% total import dependence, $90-110M fuel savings, 25% probability), realistic (480 MW, 22-25% generation, 78-80% import dependence, $60-75M savings, 60% probability), pessimistic (400 MW, 18-20% generation, 80-82% dependence, oil spike nullifies gains, 15% probability). Realistic case most probable: modest capacity delivery typical infrastructure delays, generation share limited by intermittency/storage constraints, total energy import dependence declining marginally 80%+ to 78-80%—structural continuity despite incremental progress. Strategic imperatives: restore measurement (import dependence/generation outcomes/fuel costs/FX drain), develop transport electrification strategy (30% EV 2030 requires 20K annual sales/2K chargers/+50-70 MW grid capacity), prioritize efficiency as least-cost pathway (building codes/appliance standards delivering more per dollar than generation), publish financing strategy ($840M debt/equity/concessional/PPAs fiscal implications opaque), confront stranded assets and transition costs (who bears thermal underutilization losses). Final assessment: energy security requires comprehensive transformation—electricity/transport/efficiency/finance/measurement—not electricity sector incrementalism. Current strategy comfortable: capacity without generation outcomes, electricity without transport, supply without demand reduction, gaps preventing accountability—producing visible progress (solar farms/turbines/ribbon-cuttings) without structural sovereignty. By 2029 more renewable capacity but similar import dependence, modest fuel savings but persistent external vulnerability, ambitions announced but hard choices deferred. Positions energy security ultimate governance test: technical capability present but political will for upfront costs/distributional conflicts/patient capital uncertain. Data gaps choices not constraints, capacity-generation disconnect knowable not mysterious, transport blindspot institutional fragmentation not technical inevitability—question whether state building comprehensive strategy or continuing narrative disconnected from outcomes.

Section 40 of 42 • Mauritius Real Outlook 2025–2029 • The Meridian