In Angola, the African Development Bank supports the renewable energy sector | African Development Bank

The Angola Renewable Energy Program (AREP), implemented in Angola between 2019 and 2022, has helped establish a viable and sustainable procurement framework that encourages investment by Independent Power Producers (IPPs) in the Angolan renewable energy sector, particularly in solar energy and hydropower.

By the end of 2021, Angola had made progress by increasing the national electrification rate (from 33% in 2017 to 43% in 2021) and increasing the renewable component of the energy mix from 59% in 2017 to 64% in 2021.

In particular, the program supports the Angolan government’s efforts to quadruple renewable energy production from 125 megawatt hours to 500 megawatt hours (mainly solar).

The Sustainable Energy Fund for Africa (SEFA), a multi-donor dedicated fund managed by the African Development Bank, provided the program with a $1 million grant.

AREP will help reduce the country’s dependence on fossil fuels and mitigate the negative effects of mega-energy projects. It also aims to boost private investment in the renewable energy sector and build capacity to design, implement and monitor projects.

Establishing supportive regulatory frameworks to attract credible IPPs, such as this technical assistance operation provides, is relevant to meeting the country’s needs.

The program supports the mobilization of private investment in renewable energy through a range of policy and regulatory frameworks. These include reforms and the inclusion of revised laws to comply with renewable energy investments and international standards.

This support led to the completion of several important texts. The first was a set of tender documents for IPPs, followed by a roadmap for implementing the procurement program.

Angola’s energy context during project preparation in 2017 was characterized by low access to clean, modern and reliable energy – 33% nationwide. The long-term development strategy, which has reached 43%, aims to expand access to electricity to 60% of the population by 2025. Renewable energy will account for 70% of the country’s installed capacity.

The government of Angola plans to install 100 megawatt-hours of solar power by 2025, of which 30 megawatt-hours will be off-grid.