The minister of Energy and Water, João Baptista Borges, said Thursday in Luanda Province that it is essential for the public and private sectors to join forces to expand electricity in the country.
To this end, the minister, who was opening the 7th edition of the African Energy Market, explained that clear regulations are needed, which is why he has working with the Angolan Development Bank (BDA) and other bodies.
When asked about the fact that the BDA was in favour of removing energy subsidies, he said that it was a discussion that had to take place when it was appropriate to start the process of removing subsidies.
“Today we have a low tariff, less than a cent and the average in the region is 10 cents. It’s clear that, with a view to attracting private capital to the energy business, the tariff to be charged cannot include subsidies, but it must be a price that reflects costs and in a gradual process of tariff adjustments,” he explained.
He emphasised that the development of the electricity sector in Angola had to be tackled with greater participation by private capital, particularly with the construction of generation and exploration assets.
As such, he informed that the government is considering opening up the energy transport segment to private participation, with a view to attracting private capital to serve areas of particular economic interest and cross-border connections.
He said that the creation of cross-border links, both with Zambia and the DRC, “could make it possible to transport part of the energy we have to these regions, guaranteeing Angola foreign exchange resources”.
In recent years Angola has seen exponential growth in its installed electricity generation capacity, rising from 2,356.36 megawatts in 2015 to around 6,319.43 megawatts, following major investments.
To note the recent completion of the Laúca Hydroelectric Plant, which produces around 2,070 megawatts and the expansion of the Cambambe Plant.
Alongside investment in hydroelectric power, Angola has begun the process of restructuring its energy matrix, having recently completed the Biopio Photovoltaic Plant, with around 188 MWdc and Baia Farta, with around 96 MWdc, which contribute around 3.8% to the Public Electricity System.
The minister said that 17.2 billion dollars is the amount needed for Angola to reach an electrification rate of 50 per cent by 2027, as opposed to 43% at present.
He explained that the addition of another 7% to reach 50% means the creation of 1.7 million household connections.
“The target is set out in the National Development Plan (PDN) 2023-2027, in line with the Long Term Agenda 2050, which also envisages reaching an installed capacity of 8,000 megawatts by 2027,” he said.
He said that the African Development Bank (ADB) is already financing the construction of the line between Huambo and Lubango, Huíla Province, which will take energy from the centre to the south, and is also financing the installation of around 1.3 million pre-payment system meters to help the National Electricity Distribution Company (ENDE) reduce commercial losses and increase revenue.
The vice-president of Energy, Climate Change and Green Growth at the African Development Bank (AfDB), Kevin Kariuki, said that in Angola the bank is involved in energy projects worth 1 billion dollars.
He made known that he was looking at developing the Angola-Namibia transmission line to export energy, as well as he expressed an interest in working in the Province of Cabinda on the creation of renewable energies.
The 7th edition of the African Energy Market, an initiative of the African Development Bank (AfDB), with the participation of the Tony Blair Institute for Global Change, has as its central theme “Accelerating Energy Sector Reforms and Increasing Investment in the Energy Sector”.
The event brings together the main public and private players and development partners.
Source: Angop