'It is clear that the Angolan Executive will have to make a concerted effort (...) to involve private developers/investors'

One of the biggest challenges of the future is to contain the effects of climate change and global warming and minimise dependence on fossil fuels, and the most expeditious and sustainable way to achieve this is the use of renewable sources.

Renewable Energies are recognized energy sources in the world energy market, due to the increasing improvement of the cost-benefit ratio, the financing that has happened quite frequently, the energy security and incentive policies developed by Governments to attract the private sector.

Considering the size of the national territory, the Government of Angola, through the Ministry of Energy and Water (MINEA), prioritized engagement and commitment to the development of Renewable Energies for the electrification of remote areas of the country, where energy is scarce or non-existent, with the implementation of mini-grid systems and solar home systems,  thus contributing to the energy transition and the establishment of a more sustainable future.

To this end, it has established three strategic objectives, with a view to responding to the main challenges identified, namely:

1. Improve access to energy services in rural areas to facilitate development and poverty alleviation;
2. Develop the use of new renewable technologies, fostering the creation of new markets and the reduction of regional asymmetries;
3. Promote and accelerate private investment in new Renewable Energy, with the creation of effective investment conditions in Renewable Energy that mitigate the distortions introduced by fossil fuel subsidies, offering an adequate return on investment, risk mitigation and regulation, procedures and communication that facilitate implementation and engage investors.

Through Executive Decree No. 78/23, of May 30, 2023, the Guidelines for the Preparation of the National Electrification Plan were released, whose ultimate objective is universal access to electricity by 2030.

To face the challenges of the current reality and project the growth of the Sector, an Action Plan was prepared for  the 2023-2027 horizon, aligned with the 2050 Long-Term Agenda.

The National Development Plan 2023 – 2027 foresees a diversification of the energy mix in order to incorporate at least 72% renewable energy, of which 1,162.26 MWdc from solar sources, by the year 2027 and an electrification rate of 50%.

It is clear that the Angolan Government will have to make a concerted effort to establish specific and clear regulatory policies and guidelines to involve off-grid private developers/investors, collect and evaluate data to characterise the off-grid market, specifically assessing accessibility levels in areas that will need services. This information should be used to design market-specific tax and financial incentives to leverage the private sector's capacity to expand access to off-grid solar.

We are facing a common challenge between the Public Sector and the Private Sector, with regard to the universalization of the electrification of the country, so we appeal to Financial Institutions, Investors and the Private Sector, in particular, so that we can create a combined action of efforts and initiatives between the different actors, which allows for greater expansion of the Energy Sector.  so as to make it robust, resilient and promising.

With this in mind, MINEA and ALER have developed a joint action within the framework of the EU-Angola Dialogue Facility called "Exchange for Analysis of the Potential of a Solar Home Systems (SSD) Programme in Angola". After a technical mission to Mozambique in September to exchange experiences on this topic, a Good Practices Seminar was held on 13 December in Luanda.

For this action, a Technical Report and Recommendations was produced that allowed an analysis of the critical factors for the potential implementation of an SSD program in Angola and to identify elements to manage or overcome these factors. Among the various recommendations, it highlights the importance of implementing the creation of the National Agency for Rural Electrification, as a unit for planning and coordinating rural electrification actions, as well as the National Electrification Fund, which concentrates and distributes all financial resources in the form of incentives.

The priorities are identified, we will now work together for the development of renewable energy and rural electrification in Angola.

I wish you all a happy holidays and renewed energy for 2024.

Serafim da Silveira
National Director for Renewable Energies and Rural Electrification, MINEA