Angola’s Ministry of Finance secures €1.3bn from London-based bank Standard Chartered for construction of distribution network for solar generated electricity. Importantly, Portuguese engineer MCA Group will manage the project for Angola’s Ministry of Energy and Water.
Additionally, some 200,000 households in 60 communities throughout the country will benefit from the initiative. Moreover, the loan will pay for 48 solar farms with storage to power communities not connected to the national grid.
Reportedly, the money will also help extend the national grid in Malanje and other municipalities. This will help to diversify the country’s energy mix. According to MCA, Angola will save up to 7.9 megatonnes of CO2 emissions once the project is fully implemented. Additionally, the solar projects will help Angola to reduce dependency on fossil fuels.
Noteworthy, out of the €1.3bn, €1.2bn is guaranteed by German export credit agency Euler Hermes. Moreover, the remaining €92m will take the form of a commercial loan.
Also Read: AfDB funds US $530m electricity project to expand regional connectivity in Angola
Edna Schöne, executive board member at Euler Hermes, said many German small and medium-sized companies would be involved in the project. Additionally, many jobs will be created both during and after construction of the solar farm.
Angola’s Installed Solar Projects Capacity
Importantly, MCA completed work on solar farms in Biópio and Baía Farta in western Benguela province last August. Noteworthy, these had an installed capacity of 285MW and have since provided energy to about 1.8 million people.
And in June last year, The US Export-Import Bank facilitated the mobilization of $2bn to develop a solar project in Angola. Additionally, the project included development of solar mini-grids, home power kits and solar-to-power telecoms. Moreover, this was followed by a $900m loan for a 500MW solar farm in June of this year.
Reportedly, the Angolan government has signed other deals financed by Standard Chartered recently. These deals include a $1.1bn loan in September 2021 to develop water infrastructure.
