Angola’s Ministry of Finance has secured 1.29 billion euros ($1.44 billion) from Standard Chartered to finance the construction of 48 hybrid solar power systems in the provinces of Moxico, Lunda Norte, Lunda Sul, Bi and Malanje. The new solar infrastructure provides sustainable electricity for a million people.
The combined capacity of the minigrid systems is 296 MW of solar energy, and the energy storage in lithium ion batteries is 719 MWh. The project will be implemented for 36 months.
MCA will manage and build the project. The 1.29 billion euro financing is supported by the German export credit agency Euler Hermes.
“Depending on the level of consumption at the 48 locations, we estimate the LCOE to be €0.153/KWh and €0.275/KWh for all systems,” the MCA spokesperson said. pv magazine. “This does not only take into account solar power, but also the storage capacity of all 48 sites. As for the cost to consumers per kilowatt hour, Angola’s tariff regulation is mandatorily applied. Depending on the type of consumer, a certain price per kilowatt hour is charged. Electricity prices are subsidized in Angola.
At the beginning of June, the US Export-Import Bank granted a loan to the Angolan Ministry of Energy and Water for the commissioning of two large solar power plants with a total of 500 MW.
According to the latest statistics from the International Renewable Energy Agency (IRENA), Angola had 297 MW of installed solar power capacity at the end of 2022. By 2025, the African country aims to reach a utilization rate of 65 percent and a total installed capacity of approximately 10 GW. However, its current installed capacity is only 5.6 GW, and only 4.5 GW is available.