Angolan Ministry of Finance welcomes EUR 1.29 billion from Standard Chartered for the construction of Angola photovoltaic electricity distribution infrastructure. Importantly, the new system will support rural villages to become more self-sufficient and less reliant on Angola’s main electricity network.
The loan will fund 48 hybrid photovoltaic electricity generation systems with energy storage that act as ‘mini grids’ and operate autonomously. Additionally, it will provide access to 100% renewable electricity for communities not connected to the national electricity grid. Furthermore, the financing will support expansion of the national grid in Malanje and build new lines and networks connecting other municipalities. The installation of the new electricity network will help diversify the country’s energy mix. Reportedly, the project will save up to 7.9 megatonnes of CO2 emissions.
The number of households to benefit
Angola Photovoltaic Electricity Distribution Infrastructure project, developed by the Angolan Ministry of Energy and Water will benefit 203,000 households. These are namely the provinces of Moxico in the East, Lunda Norte and Lunda Sul in the North East. Additionally, Bié in the central part of the country and Malanje that is found in the North West.
Commenting on the financing deal, Claudia Conceicao, CEO, Standard Chartered Bank Angola said: “As Standard Chartered, the commitment to sustainable development and supporting communities to transition to renewable energy is reflected in our financing of the solar powered electricity infrastructure in Angola. The bank recognizes the importance of investing in clean energy infrastructure to support economic growth while protecting the environment.”
Yoshi Ichikawa, Head of Structured Export Finance for Europe, Standard Chartered Bank, said: “We are thrilled to complete the financing of this important project for the Angolan government to supply renewable energy-sourced electricity to local communities. It’s another great example of our collaboration with ECAs and contractors to deliver for our clients.”
Importantly, the financing is backed by German Export Credit Agency Euler Hermes. Additionally, the contractor MCA Group is managing construction and project management.