New RE Entity In Angola

African Development Bank Extends $1 Million SEFA Grant To Set Up Energy Project Implementation Support in Angola, As One-Stop Shop For Independent Power Producers & Improve Project Bankability
11:56 AM (Beijing Time) - 18. September 2018

Key Takeaways

  • African Development Bank has approved a grant of $1 million for independent power producers in Angola through SEFA
  • SEFA will help the new entity, Energy Project Implementation Support, with technical assistance to create enabling environment for IPP and PPP projects
  • Creation of such a dedicated entity will help improve bankability of projects and also encourage private investment in renewable energy, according to the bank

The African Development Bank (AfDB) is rooting for the creation of a dedicated entity to encourage private investment in renewable energy in Angola. Its Sustainable Energy Fund for Africa (SEFA) has approved a grant of $1 million for independent power producers (IPP) in the country.

The new entity will be called Energy Project Implementation Support (EPISU) that will act as a one-stop shop unit, according to the bank, with SEFA providing technical assistance aimed at creating enabling environment for IPP/public private partnership (PPP) projects. It will improve bankability of the concerned projects.

The bank says SEFA will also lend its know-how to address capacity-building issues by providing technical assistance on project procurement, contract design implementation and monitoring.

“This project will enable and stimulate investments through IPPs in the Angolan renewable energy sector. It also complements the $1 billion Bank’s Power Sector Reform Support Program to the ongoing energy sector reforms undertaken by the country,” said Amadou Hott, the African Development Bank’s vice president for Power, Energy, Climate Change and Green Growth.

A 2017 document from the United Nations Agency for International Development (USAID) says the country had 3.4 million households without power, and it aims to bring electricity to 60% of its population by 2025 when it wants to have 9.9 GW of total installed generation capacity. Of this 9.9 GW, it will aim to have 70% of its power supply coming from renewables. It will include 800 MW of new renewables including solar, wind, mini-hydro and biomass, according to the country’s power sector development vision, Angola Energy 2025.

Under the IPP regime, Angola plans to launch solar PV public tenders to have 100 MW of installed solar power capacity with 10 MW off-grid power and establishing a factory to locally produce solar PV panels and the associated cluster. Angola Energy 2025 states the country has a solar potential of 17.3 GW through 368 projects.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani