Angola is turning to solar energy
Cover under a Supplier Credit Guarantee and a Buyer Credit Guarantee
Electricity from renewable sources for Angola
With the Rural Electrification Project, Angola wants to extend the electrical power supply: About 203,000 households will receive photovoltaic systems. Thus, more than one million Angolans will be supplied with electrical power from renewable energy sources from 2025 onwards. MCA Deutschland is supplying key components for the project from Germany. The subsidiary of the Portuguese MCA Group was established in 2021 in order to build up a centre of competence in Germany for the implementation of energy and urban development projects in African and European countries. In particular, the company wants to use German supply chains and the engineering knowhow of small and medium-sized German companies (SME) when implementing such projects.
Angola Energia 2025
Expanding the power supply has high priority for the Angolan government. The strategy, with which the southwest African country wants to give its population access to electricity, is named "Angola Energia 2025". The energy supply is to be as sustainable as possible because Angola committed itself to increase the share of renewable energies to 70% by the year 2025 at the climate conference in Glasgow (COP 26). Therefore, the African country has already started several energy projects. The Rural Electrification Project is one of these.
Supplying 60 Angolan communities
The project aims at providing 60 communities in five Angolan provinces with solar panels, batteries and the corresponding infrastructure. If more electrical power is produced than used, it will be stored in lithium-ion batteries so that the systems can still supply solar power even if no energy is generated, for example, in the evening hours. Besides, existing sub-stations and distribution grids will be expanded or newly built.
As general contractor, MCA Deutschland has the overall responsibility for the project’s implementation and will rely on numerous German leading technology companies and small and medium-sized enterprises for the procurement.
Savings of up to 7.9 megatons of CO2e
In geographically remote areas, the hybrid photovoltaic systems will raise the standard of living of the Angolan population. All in all, the project will feed 482 GWh annually of additional power from renewable sources into the national grid. According to MCA’s calculations to 7.9 megatons of CO2e and 5.9 billion euros can be saved over a term of 20 years.
The renewable energies will replace fossil fuels. As a consequence, not only greenhouse gas emissions can be reduced but also local emissions of air and wastewater pollutants. This is an advantage both for the local population and biodiversity.
Photos: ©MCA GROUP
Support through Export Credit Guarantees
A consortium of eight banks is providing a financial loan for the deal, which was structured by Standard Chartered Bank. The German government is providing Supplier Credit and Buyer Credit Cover.
"We are very proud that we as ECA are able to support this sustainable project with the Export Credit Guarantees of the Federal Republic of Germany," says Edna Schöne, Member of the Board of Management of Euler Hermes AG. "The project is not only of outstanding importance for Angola and sub-Saharan Africa, but also contributes to the protection of our planet by significantly reducing greenhouse gas emissions," Schöne continued.
The hybrid photovoltaic systems in Angola are set to supply electricity from 2025. The project is therefore on schedule for "Angola Energia 2025".