The government has announced plans to construct 65 solar mini-grids. Export-Import Bank of the United States (US Exim) approved a loan of US $1.6bn to support the development.
The infrastructure will be set up in four provinces. These mini-grids will supply electricity to local communities and power facilities for water collection, treatment, and purification. Key participants in this project include Dutch bank ING Capital, Miami-based project developer Sun Africa, and Portuguese-Angolan construction firm Omatapalo.
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Energy potential
US Exim highlighted the project’s potential to improve health, education, and social wellbeing in regions with limited access to electricity and potable water. Angola holds great potential for renewable energy production. Mapping studies completed by the MINEA identified potential for 16.3 GW solar power, 3.9 GW wind power, and 18 GW in hydropower throughout the country.
Sun Africa offers comprehensive services to African governments for large-scale solar projects, including feasibility studies, sourcing subcontractors and materials, arranging financing, and construction supervision. The company typically sources solar panels from Korea.
Previously, Sun Africa was involved in a US $900M US Exim transaction for two solar plants in Angola. The latest loan supports US Exim’s goals of competing with China’s export credit system and increasing activities in Sub-Saharan Africa. Reta Jo Lewis, US Exim’s chair, emphasized the commitment to renewable energy projects, supporting US exporters in Sub-Saharan Africa, strengthening economic ties with Angola, and advancing President Biden’s Partnership for Global Infrastructure (PGI) initiative.
