Angola secures EUR 1.3bn to build PV systems for rural areas

The Angolan Ministry of Finance has secured EUR 1.29 billion (USD 1.40bn) in financing arranged by British bank Standard Chartered Plc (LON:STAN) to build photovoltaic (PV) electricity distribution infrastructure for several rural regions across the country.

The funds will be used to set up 48 hybrid photovoltaic generation systems with energy storage that will serve as “mini grids” and operate autonomously to provide renewable electricity for communities not connected to the national grid, a statement said last week.

The planned solar facilities are expected to serve about 203,000 households in 60 communities.

The financing will also support the expansion of the national grid in Malanje, northern Angola, and build new lines and networks connecting other municipalities.

The project is being developed by the Ministry of Energy and Water. The contractor is Portugal-based MCA Group which is in charge of the construction and project management.

The major part of the financing, about EUR 1.2 billion, is backed by German Export Credit Agency Euler Hermes, while the remainder is a commercial loan.

(EUR 1 = USD 1.088)

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