Angola receives $900m loan to bankroll two solar PV plants

EXIM said the project will:

Angola's government aims to increase access to electricity to 60% of the population by 2025. They want renewable energies to constitute 70% of the installed capacity of the country by then.

The African Development Bank said the country's hydroelectric potential "is enormous."

"It is estimated at 18.2GW (of which only 20% is currently exploited). The government of Angola plans to install 100MW of solar capacity by 2025, including 30MW off-grid.

"In addition, there are also significant opportunities to develop wind energy: 100MW could be generated in southwestern Angola. Unlocking the country's renewable energy potential requires significant private investment.

"However, the capacity of the government of Angola to put in place a regulatory framework based on a legislative mandate was deemed insufficient to promote private sector participation," said the Bank.

Have you read? Angola leads the PV way, as Africa increases solar energy capacity – report

The EXIM project was initially announced during the 2022 G7 Summit by the Angolan government, US firm AfricaGlobal Schaffer and US project developer Sun Africa.

It advances US President Joe Biden's flagship Partnership for Global Infrastructure and Investment (PGII), which aims to advance digital and energy infrastructure worldwide.

Have you read? 5GW of renewable energy agreements signed with Angola, Uganda and Zambia

"We are proud to take part in this important project, which will increase access to electricity in Angolan communities using clean energy technology," said EXIM President and Chair Reta Jo Lewis.

"This transaction not only aligns with President Biden's PGII initiative, but also advances EXIM's efforts to promote clean energy exports, strengthen the US-Africa commercial relationship and support US exporters and American workers facing foreign competition."

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The Export-Import Bank of the US (EXIM) has approved a direct loan for more than $900 million to the Ministry of Energy and Water in Angola to support the construction of two solar PV energy power plants. Have you read? Angola leads the PV way, as Africa increases solar energy capacity – report Have you read? 5GW of renewable energy agreements signed with Angola, Uganda and Zambia