Angola Benefits from €1.29 Billion Loan for Renewable Mini-Grids and Grid Expansion

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The Ministry of Finance in Angola has secured a loan of €1.29 billion to deploy 48 solar PV and energy storage mini-grids. The loan is secured from Britain’s Standard Chartered Bank and targets to support rural areas across the country. The mini grids will enable Angola to become self-sufficient in their energy use, and bring down their reliance on national grid.

Mini grids are planned to be located in Moxico province in the east, Lunda Norte and Lunda Sul in the north east. Additionally, Bie in central Angola and Malanje province in the North West will host more minigrids. Importantly, these mini grids will deliver access to 100% renewable energy to 60 off-grid communities, helping approximately 203,000 households.

Also Read: Angola to receive US $1m grant for renewable energy investments

Significance of the mini-grids to the Angola’s economy and development

Additionally, the €1.29 Billion will support the expansion of the national grid in Malanje. Moreover, the funds will aid 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