Angola’s Independent Power Producers (IPP) has received a US $1m grant from the Sustainable Energy Fund for Africa (SEFA) managed by the African Development Bank to boost private investment in renewable energy.
Amadou Hott, the African Development Bank’s Vice President for Power, Energy, Climate Change and Green Growth confirmed the reports and said the grant will be used to establish a one-stop shop unit known as the Energy Project Implementation Support Unit (EPISU).
“This project will enable and stimulate investments through IPPs in the Angolan renewable energy sector. It also complements the US $1 billion Bank’s Power Sector Reform Support Program to the ongoing energy sector reforms undertaken by the country,” said Amadou Hott.
Angola’s development strategy
Additionally, as part of its long-term development strategy, the Government of Angola aims to expand electricity access to 60% of the population by 2025, with an expected 70% to be derived from renewable sources SEFA will address capacity-building issues through providing technical assistance on project procurement, contract design implementation and monitoring.
“This intervention underpins Angola government’s Power Sector Development Vision, “Angola Energy 2025”, and Angola’s Renewable Energy Strategy approved in 2015, aimed at increasing universal access to energy services, improving energy efficiency, and increasing the use of renewable energy,” added the Vice President.
SEFA is a multi-donor facility established to unlock private sector investments in small to medium sized clean energy projects in Africa, operating through three components; (i) grants to facilitate the preparation of renewable energy generation and energy efficiency projects towards bankability (ii) equity investments to bridge the financing gap for renewable energy generation projects and; (iii) support to public sector in improving the enabling environment for private investments in sustainable energy.
The US $1m investment is also in line with Angola’s National Adaptation Program for Action (NAPA), which aims to promote renewable energy and extend rural electricity grids.