Government plans to open energy production to the private sector

Government plans to open energy production to the private sector

The expansion and modernization of the national electrical system, which includes three million connections, by 2027, foresees the insertion of the private sector in the production, distribution and commercialization of electrical energy in the country, with a view to ensuring financial sustainability, reducing high losses and improve the “weight” in the Gross Domestic Product (GDP).

To this end, the Executive is already working on the new legal framework that will allow entrepreneurs to enter the energy market, since the current structure makes the State the only producer, buyer and seller of energy, guaranteed the Secretary of State for Energy, Arlindo Carlos.

Mention the existence, for some time now, of authorized agents from the National Electricity Distribution Company (ENDE), who represent a strategic partner of this institution to help with billing and collection from customers/consumers, as well as with small repairs on the network in areas where public company services are not available.

The intention, he highlighted, is to make the market open, transparent, competitive and functional to encourage investment in sustainable energy, storage, as well as energy efficiency.

In this sense, and within the scope of the National Development Plan 2023-2027 (PDN), the objective is to promote the use of technologies in energy terms and energy savings at all stages of the chain, from production to consumption, particularly in agriculture, manufacturing and extractive industries and tourism.

Current framework, network evolution and challenges until 2027

With an estimated population of 33 million inhabitants, around 44% of the Angolan population has access to electricity and it is expected to reach, in 2027, a coverage rate of 50%, according to data provided by the Ministry of Energy and Water.

As for the installed production capacity, set at 6.3 gigawatt (GW), a volume exceeding 8 GW is expected within three years.

The maximum demand recorded in 2023 is approximately 2,375 gigawatts, with approximately 64.4% of energy produced in Angola currently coming from non-renewable sources, hydro and solar.

The country has 5,500 kilometers of transmission lines, divided into 110 KV, 132 KV, 150 KV, 220 KV and 400 KV and hopes to reach 6,500 km by the year 2027, the final period of the ongoing National Development Plan (PDN) .

For the consumption of this production, the source explained, one million and 900 thousand low voltage customers are registered, with a projected reach of 3.5 million paying consumers, with respective pre-paid meters.

With a view to achieving the goals, the Government set the challenge of installing isolated solar systems in remote areas, with lithium batteries, which will power 173 thousand connections, in 65 locations, in the provinces of Cuando Cubango, Namibe, Huíla and Cunene.

The program also foresees 200,000 connections in the provinces of Lunda-Norte, Lunda-Sul, Moxico, Malanje and Bié.

According to ANGOP, among the objectives of these initiatives is sustainability by covering the real operational costs of the system, which progressively reduces tariff subsidies and guarantees social protection for the most disadvantaged people.

On the other hand, the Secretary of State mentioned some data in the context of the sub-Saharan region of the continent, having mentioned that, increasingly, statistics from the World Bank indicate that the country had, by 2021, an electrification rate of 50. 6%.

At the time, there was an increase of just over half, in the space of a year, taking into account that in 2000 the rate was 25%.

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

The sector’s forecasts, according to the “PDN 2023-2027”, point to 250 thousand connections being made annually, in order to increase the electrification rate which, at this point, covers almost two million customers.

The prospect is to reach 3.5 million customers in 2027.

As for the electrification rate, which between 2017 and 2023 had a national coverage of 36%, it is expected to extend to 50% of the population in the next three years.

“Energy mix” process

According to the expansion and modernization program of the national electrical system, the Executive’s main focus is on developing the solar/hydro binomial, limiting the commissioning of new power of thermal origin, but keeping attention to the operation and maintenance of thermal power plants currently in operation. operation.

In this regard, the construction of the Caculo-Cabaça hydroelectric plant stands out, with an installed capacity of 2.2GW and the Laúca Solar Plant, with a capacity of 400MW.

As a result, the country has reduced, since 2017, a fuel consumption of around 800 million liters per year to 370 million, through the increase in renewable energy production and the interconnection of 10 provinces to the national system.

The director stated that this represents a reduction in CO2 emissions.

Solar parks in Angola

The solar plant corresponds to a complex of equipment capable of transforming solar energy into electrical energy, characterized as a clean source of renewable energy and classified as photovoltaic.

The country has seven photovoltaic solar plants, three of which are in operation, namely Biópio, with 188 thousand megawatts of production, Baía Farta (96 thousand MW), both in operation since 2022 in the province of Benguela, and the of Saurimo, in the province of Lunda-Sul, with capacity to generate 26 thousand 906 megawatts, operational since last March.

Nearing completion, scheduled for 2025, are the Luena (Moxico) plants, which will produce 26 thousand 906 megawatts, the Lucapa plant (Lunda-Norte), with 7 thousand 193 MW, the Cuito plant (Bié) and the Bailundo plant. (Huambo), which produce, respectively, 14 thousand 652 MW and 7,992.00 megawatt.

Other goals of the expansion and modernization program

Among the main challenges, support for the implementation of relevant national and regional energy initiatives in Africa stands out, with a view to contributing to the objectives of the African Initiative in the field of Renewable Energy (IARR).

Likewise, increasing sustainable energy generation and storage capacity, improving transmission and distribution infrastructures, through the promotion of safe, sustainable and resource-efficient solutions that effectively contribute to the eradication of poverty.

There is also the task of promoting research and innovation in the field of renewable energy and energy efficiency, sectoral reforms, as well as the development of appropriate regulatory and action frameworks to ensure a greater pace of electrification and regional interconnectivity.

Another goal for the sector is to strengthen regional electricity exchanges as a means of integrating markets and cross-border energy trade.

The connection with the Democratic Republic of Congo (DRC) takes place from the East and Southwest systems of Angola, via the Inga hydro plants, in Cabinda, and Soyo, in the province of Zaire, with capacities of 220 KV and 400 KV respectively.

With the Republic of Namibia, the system interconnects the Cahama substation, in the province of Cunene, with 400 KV. OPF/VC/DOJ

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