The note outlines the impacts of theUrban Household Energy Project in Mozambique, identifyingcost-recovery tariffs, employment generation, and improvedservices, including the significant achievement of powersector reforms, which allowed the creation of independentgrids. Following the passage of the Electricity Law in 1997,which de-monopolized the national power utility, and allowedprivate sector participation in the industry, the abovementioned project funded a pilot isolated gridelectrification project in two coastal towns, which extendedlow-cost services to these isolated areas, after an enablingframework had been created for private participation.