The African Development Bank (AfDB) said on Thursday it will provide $1 million (€855,400) in grant financing to support private investment in Angola’s renewable energy sector.
The funds will be allocated through AfDB’s Sustainable Energy Fund for Africa (SEFA) and will facilitate the creation of a one-stop shop unit named the Energy Project Implementation Support Unit (EPISU). The financing will be targeting independent power producers (IPPs) in Angola.
“This project will enable and stimulate investments through IPPs in the Angolan renewable energy sector. It also complements the US$1 billion Bank’s Power Sector Reform Support Program to the ongoing energy sector reforms undertaken by the country,” said Amadou Hott, the African Development Bank’s Vice President for Power, Energy, Climate Change and Green Growth.
This intervention underpins Angola government’s Power Sector Development Vision, “Angola Energy 2025”, and Angola’s Renewable Energy Strategy approved in 2015, aimed at increasing universal access to energy services, improving energy efficiency, and increasing the use of renewable energy.
The investment is also in line with Angola’s National Adaptation Program for Action (NAPA), which aims to promote renewable energy (notably hydropower, solar and wind mini-projects) and extend rural electricity grids. It is also aligned with the Bank’s Energy Sector Policy (2012), the New Deal on Energy for Africa, especially focusing on “Renewable Energy” and “Early Stage Project Finance”.