Angola’s National Electrical System Expansion Targets Private Sector Integration by 2027

Angola’s National Electrical System Expansion Targets Private Sector Integration by 2027

The expansion and modernization of Angola’s national electrical system aims to add three million connections by 2027, with a key focus on integrating the private sector into energy production, distribution, and commercialization.

This initiative seeks to ensure financial sustainability, reduce high losses, and improve the sector’s contribution to the Gross Domestic Product (GDP).

To facilitate this transition, the government is working on a new legal framework that will open the energy market to private entrepreneurs.

Currently, the state holds a monopoly on energy production, purchase, and sale, according to Arlindo Carlos, the Secretary of State for Energy.

There have already been authorized agents from the National Electricity Distribution Company (ENDE) acting as strategic partners to assist with billing, collection, and minor repairs in areas lacking public company services.

The goal is to create an open, transparent, competitive, and functional market that encourages investment in sustainable energy, storage solutions, and energy efficiency.

As part of the National Development Plan 2023-2027 (PDN), the government aims to promote the use of advanced technologies and energy-saving practices across the entire energy chain, especially in agriculture, manufacturing, extractive industries, and tourism.

Current Status, Network Evolution, and Future Challenges

With a population of approximately 33 million, around 44% of Angolans currently have access to electricity.

This figure is expected to rise to 50% by 2027, as per data from the Ministry of Energy and Water. The country’s installed production capacity is set at 6.3 gigawatts (GW) and is projected to exceed 8 GW within three years.

As of 2023, the maximum demand recorded was about 2,375 gigawatts. Presently, 64.4% of Angola’s energy comes from non-renewable sources, hydro, and solar power.

The nation has 5,500 kilometers of transmission lines, with plans to extend this to 6,500 kilometers by 2027.

Currently, there are 1.9 million low-voltage customers, with an aim to reach 3.5 million paying consumers equipped with pre-paid meters.

To achieve these goals, the government plans to install isolated solar systems in remote areas using lithium batteries, targeting 173,000 connections across 65 locations in Cuando Cubango, Namibe, Huíla, and Cunene provinces.

Additionally, 200,000 connections are planned for Lunda-Norte, Lunda-Sul, Moxico, Malanje, and Bié provinces.

The initiatives aim to cover real operational costs, progressively reduce tariff subsidies, and ensure social protection for the disadvantaged.

According to World Bank statistics, Angola had an electrification rate of 50.6% by 2021, a significant increase from 25% in 2000.

The country has 39 substations with a transformation capacity of 12,891 Megavolts (MVA), with 10 out of 18 provinces interconnected by the National Transport Network (RNT).

The PDN 2023-2027 forecasts 250,000 new connections annually to increase the electrification rate, which currently serves nearly two million customers, aiming for 3.5 million by 2027.

The government’s focus is on developing solar and hydro power, while limiting new thermal power plants. Key projects include the Caculo-Cabaça hydroelectric plant with a 2.2 GW capacity and the Laúca Solar Plant with a 400 MW capacity.

Since 2017, Angola has reduced its fuel consumption from 800 million liters to 370 million liters annually, thanks to increased renewable energy production and provincial interconnections.

Angola has seven photovoltaic solar plants, three of which are operational: Biópio (188 MW), Baía Farta (96 MW) in Benguela, and Saurimo (26.906 MW) in Lunda-Sul. Additional plants in Luena, Lucapa, Cuito, and Bailundo are expected to be operational by 2025.

The program supports national and regional energy initiatives to increase sustainable energy generation, improve transmission and distribution infrastructures, and promote renewable energy research and innovation.

It also aims to enhance regional electricity exchanges to integrate markets and boost cross-border energy trade.

Angola is connected to the Democratic Republic of Congo (DRC) through the Inga hydro plants in Cabinda and Soyo, and to Namibia via the Cahama substation in Cunene. These connections have capacities of 220 KV and 400 KV, respectively.

Overall, Angola’s ambitious plan to modernize its electrical system by 2027 aims to boost private sector participation, enhance energy sustainability, and expand access to electricity, positioning the country as a significant player in the regional energy market.

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