Budget 2025-2026: Energy Sector

In 2024, renewable energy contribution in the electricity mix stood at 18.2% (621 GwH), or 41.8% short of our international commitment of 60% contribution of renewable energy in the mix by 2030. The 2025-2026 budget enunciated a series of bold measures being implemented to accelerate our energy transition.

The unlocking of MUR 30 billion of investment in solar energy and biomass projects will change the renewable energy landscape by increasing the contribution of renewable energy in the electricity mix to above 35% by horizon 2028.

Moreover, this will create new opportunities in the renewable energy sector for large, medium and small companies through the implementation of numerous projects of different magnitude for an additional aggregated 376 MW in capacity. The consolidation of the traditional renewable energy sectors of solar and biomass will further democratise the sector opening new avenues including:

• electricity generation for households and small businesses.
• value chain creation in the biomass sector with the enlistment of different existing and new players including small planters.
• Increased opportunities for domain professionals, local contractors and suppliers.

In the medium-term new avenues will be explored to harness the potential of innovative technologies including marine renewable energies that will unlock new opportunities in the fields of research and development, maritime engineering and construction among others.

The aggregated impact of these measures will result in decreasing our dependency on fossil fuel import estimated at 21.2% of our import bill in 2024, increase in wealth and high-skilled job creation.

Furthermore, the National budget provides for the renewal of the existing public transportation fleet with electric buses accentuating our EV transition. It can be anticipated that these buses will be powered from electricity generated from renewable energy sources.

These measures will also support our international pledge towards a 40% reduction in CO2 emissions by 2030.