The Ministry of Finance in Angola has secured a loan of €1.29 billion ($1.41 billion) arranged by Britain's Standard Chartered Bank to deploy 48 solar PV and energy storage mini grids as it targets to support rural areas across the country to become self-sufficient in terms of their energy use, and bring down their reliance on the national grid.
Of the €1.29 billion, German Export Credit Agency Euler Hermes is pitching in €1.2 billion ($1.3 billion), and remaining €0.09 billion ($0.098 billion) is a commercial loan, according to the bank. Germany's MCA Group is on board to provide construction and project management services.
Mini grids are planned to be located in Moxico province in the east, Lunda Norte and Lunda Sul in the north east, Bie in central Angola and Malanje province in the North West. These mini grids will provide access to 100% renewable energy to 60 off-grid communities, benefiting approximately 203,000 households.
Financing will also support the expansion of the national grid in Malanje and build new lines and networks to connect other municipalities.
"This project is not only of crucial importance for Angola and sub-Saharan Africa but helps to reduce greenhouse gas emissions," said Executive Board Member Euler Hermes, Edna Schöne. "We are pleased that many German small and medium-sized companies are involved in this project and will contribute to its success with their technology and know-how."
Not just Germany, the US is also making inroads into the solar market of Angola. Recently, the EXIM Bank of the US announced its largest renewable energy transaction to date with more than $900 million to support the construction of 2 solar PV projects in the African nation with a combined capacity of 500 MW. To be built by American companies AfricaGlobal Schaffer and Sun Africa, these will use US produced solar equipment (see Africa PV News Snippets).