Public Consultation: New PPA Model to Renewable Energy Projects in Angola

With the approval of the General Electricity Law by Law no. 27/15 of December 14, the Angolan Electricity Sector adopted a new market model based on the Single Buyer and with more space for the private sector, where electricity production is one of the activities of the value chain available to private investors, through Concessionaires or Independent Power Producers, who establish a commercial relationship with the Single Buyer through a Power Purchase Agreement (PPA).

The Angolan Executive has demonstrated the ambition to promote clean energy for the improvement of the environment, the quality of life of the population and contribute to energy security. The National Strategy for New Renewable Energies was approved with a global goal of 800 MW by 2025 and goals for each of the main sources mentioned in Angola Energia 2025.

While the revision and creation of sector regulations in underway, as well as the adoption of related legislation, in order to attract and guarantee private investment, it is necessary that this legislative framework is accompanied by "Standard Contracts" that are in line with international best practices.

Thus, through a joint work of several entities of the sector and with the support of the European Union, a Model of Power Purchase Agreement (PPA) for Renewable Energy was developed, adapting the best international practices to Angolan legislation.

This model was presented at a workshop organized by IRSEA - Regulatory Institute for Electricity and Water Services, on May 24, and since then it is under public consultation.

Following the excellent collaboration between ALER and IRSEA, ALER offered to support the public consultation, disseminating the documents and compiling the comments for joint submission to IRSEA.

Therefore, we invite all interested parties to download here the PPA Model and here the respective attachments and send us your comments/suggestions/doubts by email to geral@aler-renovaveis.org until July 10.

We emphasize the relevance of private sector participation in this public consultation, taking into account your experience in other projects and countries to ensure that these contracts are effective in promoting projects in Angola with the participation of the private sector. Angola is a market with enormous potential that many of you might consider, now or in the future, and therefore it is essential to ensure that the model of contract is favorable to companies.