As of the end of 2023, Angola had 284 MW of installed photovoltaic (PV) capacity.⁵

Angola’s Ministry of Energy and Water (MINEA) estimates that the country has the potential for 16.3 GW of solar power generation capacity.³

The average price of electricity in Angola in 2022 was $21.52/MWh.

Coal

Not available.

Natural Gas ⁶

The average cost of electricity generation in Angola from natural gas was $21.52/MWh in 2022.

Solar ⁷

• Medium and large-scale solar projects, particularly those in the Eastern System and isolated systems without batteries, have achieved a levelized cost of electricity below $0.2 per kilowatt-hour (kWh).

In the last five years, Angola’s energy mix has changed considerably. Installed capacity is now over 4,889 GW, distributed by the following types of power generation: (i) hydro at 61%, with a capacity of 3,005 GW; (ii) thermal at 31% with an installed capacity of 1,866 GW; (iii) natural gas at 7%, with 0.375 GW; and (iv) renewable at 1% with 0.063 GW. ⁸

⁹

• Exact number of hours is not mentioned in any data.
• Angola has made progress in increasing access to electricity, with 48.22% of the population having access to electricity in 2021, the highest rate observed in the period. However, a significant gap remains between access to electricity and reliable electricity supply.
• Only 34% of Angolans have access to reliable electricity, with a stark disparity between urban and rural areas. In rural areas, a mere 10% of the population has access to reliable electricity.
• Electrification rates vary significantly across the country, with most cities achieving around 43% access, while rural areas lag far behind at less than 10%. As a result, both residents and businesses are forced to rely on diesel generators for power, highlighting the need for continued investment in Angola’s energy infrastructure.

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• As of recent data, the number of residential solar panel installations in Angola is also not extensively documented in public sources.
• In a significant development, Angola’s Ministry of Finance is funding the construction of 48 solar PV systems across five provinces – Moxico, Lunda Norte, Lunda Sul, Bie, and Malanje – as of March 2024.
• This ambitious project aims to provide electricity to approximately one million people, marking a substantial step towards addressing the country’s energy challenges. The initiative will add a significant 296 MW of solar capacity and 719 MWh of battery energy storage to the Angolan grid, paving the way for a more sustainable and reliable energy mix.

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• Angola has made significant strides in harnessing solar energy, with three solar farms currently operational. Notably, the country’s first two utility-scale solar photovoltaic plants, located in Biopio and Baia Farta, were inaugurated on July 20th, 2022.
• These plants boast an impressive 770,400 solar panels, accompanied by comprehensive civil and electrical infrastructure, including all necessary equipment and accessories.

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Current Situation

• Angola’s off-grid solar market is still in its nascent stages, with only 3,000 Solar Home Systems (SHS) sold as of July 2022. However, the country presents vast potential for growth in the solar market, particularly in SHS and Pay-as-You-Go schemes.
• Encouragingly, solar PV capacity in Angola increased by 4.4% in 2022, a significant jump from the 0.42% growth recorded in 2021.
• Furthermore, the Off-Grid Solar Market Trends Report 2022 estimates the commercial market for off-grid solar power in Africa to be a substantial $24 billion per year, indicating immense opportunities for Angola to tap into this growing market and accelerate its transition to renewable energy.

Projected Demand

• While specific projections for Angola’s off-grid solar market demand are not readily available, the overall global off-grid solar market continues to grow.
• To address rural demand, the government is pursuing the development of small-scale off-grid projects, using both fossil fuels and renewable technologies (small hydro, solar, wind, and biomass).

Current Demand ¹⁰

Angola has several on-grid projects to improve its electricity access and diversify its energy mix:

• 48 hybrid PV systems
• In a significant development, the Angolan Ministry of Finance has secured a substantial loan of €1.29 billion (approximately $1.44 billion) from Standard Chartered to finance an ambitious renewable energy project.
• The funds will be used to construct 48 hybrid PV systems across five provinces: Moxico, Lunda Norte, Lunda Sul, Bie, and Malanje.
• These minigrid systems will have a combined capacity of 296 MW of solar energy, complemented by 719 MWh of energy storage in lithium-ion batteries.
• The project, expected to be implemented over 36 months, aims to provide sustainable electricity to approximately 1 million people, marking a significant step towards increasing access to renewable energy in Angola.
• Power Africa

This project will connect Angola’s three regional power grids into a national grid for the first time. It will also bring hydropower from the Kwanza River basin to southern provinces and install prepaid meters to increase access to electricity.

• Electrification project in eastern provinces

This project will provide electricity to more than 900,000 people in 60 locations.

• Solar projects

Angola is also working on two solar plants as part of a $1.3 billion infrastructure deal with the United States, which is expected to generate more than 500 MW of renewable power

• Africa mini-grids program

Angola is part of this program, which aims to identify the best ways to deploy mini grids, use energy productively, and digitize mini grids.

Projected Demand ¹⁵

• Angola has a pipeline of significant solar projects set to come online before 2025, including the second phase of the Caraculo solar project, which will add 50 MW to the grid following the commissioning of its first phase in May 2023.
• Other notable projects include the 370-MW Lucapa solar plant, expected to begin production by Q1 2024, and the Luena Solar Energy Park, a 27-MW project slated for completion in 2024.
• Looking ahead to 2026, Angola is poised to launch its largest solar project to date. In June 2023, the Export-Import Bank of the United States approved a record $900-million loan to support the development of two solar facilities with a combined capacity of 500 MW in the provinces of Malanje and Luanda.
• This investment, part of the USA’s Global Infrastructure and Investment Partnership, is being led by American infrastructure entities Africa Global Schaffer and Sun Africa, further solidifying Angola’s position as a growing player in the global solar energy market.

A Solar Photovoltaic Installer working in Angola will typically earn around:¹⁶

• Lowest Average Salary: $1,195.92/yr
• Average Salary: $2,346.36/yr
• Highest Average Salary: $3,616.20/yr

As of May 23, 2024, the population of Angola was 37,673,003, according to Worldometer.¹⁷

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Average Installation Costs

• In Angola, the average cost of solar panels is 4 per watt.
• The average cost of solar panels in Angola is about $20,500 for a 5-kW system and $41,000 for a 10-kW system before the ITC, but the actual cost will depend on things like the type of solar panels you want, what size system you need and how much energy you consume.

Cost of Solar System

Figure 3 System Size Vs System Cost/Watt in Angola  Equipment Cost

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Electricity Generation

• Angola’s current installed capacity is estimated at 5.7 GW but only 70 percent is in use.
• The country’s current energy mix consists of 61.8 percent hydropower, 37.6 percent other fossil fuels and 0.6 percent hybrid (solar/fossil fuel).

Transmission & Distribution

• Angola’s transmission infrastructure is made up of three separate major grid systems (northern, central, and southern), in addition to isolated grids in the east. The northern grid runs 400kv and 220 kv lines, and covers Luanda, Uige, Bengo, Zaire, Malange, Kwanza Norte, and Kwanza Sul provinces.  The central network includes 220kV lines from Benguela to Huambo and Bie.
• The southern grid serves Huila and Namibe and uses 220kv lines. Plans exist to link the grids through a north-central-south backbone and expand the grid from 3,354 km to 16,350 km by 2025.  However, the four main power production plants – Lauca, Capanda, Cambambe and Soyo combined cycle  – are interconnected, and are also connected to more than four of the transmission lines of 400kV: thus, creating some interconnectivity and redundancy of the three grids.
• Currently, the northern and central backbone are interconnected, and 10 of the 18 provinces of Angola are part of it, namely: Luanda, Bengo, Uíge, Cuanza Norte, Cuanza Sul, Benguela, Huambo, Bié, Malanje and Zaire.

Energy Access 

• Energy access in Angola refers to the percentage of the population that has access to electricity. In 2021, 48.22% of the population had access to electricity, which was a 2.77% increase from the previous year.
• However, access to electricity is still a problem in Angola, especially in rural areas. According to an Afrobarometer survey, less than 10% of rural residents have access to electricity, and only about two-thirds of Angolans live in areas with access to the electric grid. Of those who have access to the grid, fewer than half have a reliable supply of electricity.

Energy exports ¹⁸

Angola’s main energy exports are crude oil and petroleum gas:

• Crude oil

Between 2012 and 2021, Angola exported an average of 1.5 million barrels per day (bpd) of crude oil, but production has declined since then. In 2022, Angola exported around 1.1 million bpd, with China and India as the top destinations.

• Petroleum gas

Angola also exports petroleum gas, including liquefied petroleum gas (LPG) products like butane and propane.

The Angolan government’s target is that in 2025 at least 7.5% of the electricity generated in the country (equivalent to an installation of 800MW) will come from new renewable energies (major hydro projects are not included). In order to reach this goal, the Angolan authorities identified three priorities:¹⁹

In order to promote investment in the renewables sector by 2025, the Angolan government is considering implementing the following actions:

• Approve specific laws for new renewable energies.
• Approve pre-defined subsidised tariffs for renewable projects to be grid-connected of up to 10MW and review the tax system.
• Allocate an amount of at least 1.2 million USD per year to the National Electricity Fund by 2025 to support rural electrification programmes based on renewable energies, and establish subsidised credit lines for the purchase of individual systems or the launch of productive activities.
• Ensure the establishment of at least one training centre for renewable energies.
• Launch a media campaign about renewable energy and its advantages, particularly as a means of bringing basic energy services to rural areas and boosting solar thermal energy.

More recently, the Government approved the General Guidelines for the Development of the Rural Electrification Plan through Executive Decree No. 78/23, of 30 May 2023. The main objective of this plan is to bring electricity to remote areas of the country that currently lack access to the national power grid and are not expected to be connected within the next 10 years. The guidelines encompass short, medium, and long-term goals. Also, short-term objectives include:

• Adopting a political and regulatory framework that encourages private sector participation in electrification through installation, operation, maintenance, and energy commercialization.
• Implementing fiscal incentives to boost private sector investment in electrification.
• Implementing risk mitigation measures for investments.
• Developing a public tender pilot project for the installation of mini-grids by private operators to validate the model for replication.
• Establishing a planning unit (National Electrification Agency) to execute programs for mini-grids and solar kits in identified areas, ensuring future public tenders are well-planned and providing guidance to potential private operators and financial partners.

External financing is key to the continuation of priority government energy projects and imports of essential equipment into Angola.²⁰¹⁹

• The portion of the Angolan government budget dedicated to the electricity production, transmission and distribution sectors increased to US$ 817.2 million in 2023 from US$490 million in 2022. Angola’s  national budget for electricity assessment  allocated is around US$ 249.4 million.
• The execution of bankable Power Purchase Agreements (PPAs or “off-take agreements”), with experienced private sector developers, will be a key step toward advancing the Angolan government’s power generation goals, particularly in renewable energy.
• Additionally, government support and other credit enhancements to mitigate political, off-taker, foreign currency, and other risks will be essential for the successful implementation of projects led by the private sector.
• The Angolan government is also seeking financing for energy dispatch centers to monitor production, transmission, and distribution by controlling inflows and outflows of electricity throughout the system.
• The African Development Bank (AFDB) approved a US$ 530 million line of credit for energy infrastructure in Angola. This includes the construction of a 343 km transmission line and a new 400/220/60 kV- 2 x 450 MVA substation in Lubango, Huila Province, upgrades to an existing substation in Huambo and the installation of a SCADA control system.  The tender for this project is open until November 21st, 2023.
• The national distribution company ENDE faces high technical and commercial loss rates estimated as high as 35 percent. The high rate of loss is due to illegal connections, non-payment and non-enforcement of payment requirements, and the fact that approximately 80 percent of electricity customers are un-metered.  Low tariffs and a heavy debt burden from predecessor companies also pose a challenge.  To improve ENDE’s operations and revenues, in 2015 the company installed 1,500 smart electric meters in a pilot with equipment from U.S. companies Itron and Landis & Gyre.

Also, as of January 2024, the Angolan government offers the following tax credits and incentives for solar and other renewable energy investments:

• A tax credit of up to 50% of the investment amount for up to 10 years
• A reduction in CIT, IIT, property tax, and stamp tax rates for up to 15 years
• An increase in depreciation and reinstatement rates of up to 80% for up to 10 years for investments in Zones B, C, and D
• The possibility of deferring tax payments, except VAT
• Subsidized tariffs for renewable projects that are grid-connected and up to 10MW
• Subsidized credit lines for the purchase of individual systems or the launch of productive activities

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Solar Projects in Angola

Operational Projects

Biopio Solar Project (188 MWp)

• Spearheaded by Sun Africa
• Funded by Swedish Export Credit Corporation, K-sure, and Development Bank of Southern Africa
• Electrifying 239,222 houses

Bay Full Solar Project (96.7 MWp)

• Located in Benguela province
• Covers 186 hectares with 261,230 solar panels
• Generates 96.1 MWp of electricity, reducing diesel reliance

Caraculo PV Plant (50 MWp)

• Developed by Eni and Sonangol
• Situated in Namibe Province
• First phase online in Q4 2022, providing electricity for 90,000 homes

Upcoming Projects

Quilemba Solar Project (35 MWp)

• Located in Huila province
• Construction to commence in 2022, commercial operations expected in 2024

Off-Grid Solar Energy Systems (600 MW)

• 30,000 solar systems to be installed in rural areas
• Generating up to 600 MW of electricity, reducing fossil fuel reliance

Masdar’s 150 MW Solar Project

• Agreement signed between Angola’s Ministry of Energy and Water and Masdar
• Developing a 150 MW solar plant, producing electricity for 90,000 homes

Standard Chartered’s $1.44B Commitment

• Funding for 48 solar PV systems across five provinces
• Adding 296 MW of solar capacity and 719 MWh of battery energy storage

Angola Solar Energy Project

• $900 million funding from U.S. Export-Import Bank
• Installing two solar PV facilities with a combined capacity of 500 MW

Luena Solar Energy Park

• Expected to start operations in 2024
• Located in Moxico province, comprising 42,560 solar panels with a total capacity of 26,906 MW

Sun Africa

• Website: (https://www.sunafrica.com)
• Services: Specializes in large-scale solar projects, offering comprehensive solutions from development and financing to construction and operation. Sun Africa has been involved in multiple projects across Angola, including the significant solar initiative to power rural areas.
• Projects: Notable for their 370 MW solar project, which includes battery storage systems, aimed at enhancing Angola’s renewable energy capacity.

Total Eren

• Website: (https://www.total-eren.com/ )
• Services: Focuses on the development, financing, construction, and operation of renewable energy power plants. Total Eren’s expertise covers solar photovoltaic (PV) and other renewable sources.
• Projects: Known for their involvement in the Quilemba Solar project, a major 35 MW solar farm that supports Angola’s efforts to diversify its energy mix.

ENDE (Empresa Nacional de Distribuição de Electricidade)

• Website: (https://www.ende.co.ao/ )
• Services: Angola’s national electricity distribution company, which has been pivotal in integrating solar energy solutions into the national grid. They work on solar installations to support rural electrification.
• Projects: ENDE has been integral in the rollout of solar mini-grids to remote regions, aiming to provide sustainable and reliable power access.

Genneia

• Website: (https://www.genneia.com.ar/ )
• Services: Provides renewable energy solutions, with a focus on solar and wind power. Their services include project development, construction, and maintenance.
• Projects: Involved in the development of solar projects that contribute significantly to Angola’s renewable energy targets, such as the integrated solar power projects in various provinces.

Soltec

• Website: (https://www.soltec.com/ )
• Services: Specializes in manufacturing and supplying solar tracking systems. Soltec’s services include the design, construction, and maintenance of solar power plants.
• Projects: Engaged in projects that implement advanced solar tracking technologies, enhancing the efficiency and output of solar farms in Angola.

These companies are contributing to Angola’s solar energy landscape through diverse and impactful projects, driving the country’s transition to renewable energy sources.