Unprecedented growth in Angola’s energy sector will provide unparalleled opportunities for service companies in the country. Angola’s energy sector offers a myriad of opportunities for service companies to participate in one of the most lucrative and prospective markets on the continent.
Electricity Production, Transmission and Distribution
The government has implemented an ambitious infrastructure plan to achieve its targeted 9.9 GW of installed generation capacity and 60% electrification rate by 2025. Part of this plan has included the expansion of the government’s budget dedicated to electricity production, transmission, and distribution from $482 million in 2021 to $490 million in 2022 while plans are currently underway to expand the grid from its current length of 3,354 km to 16,350 km by 2025.
Leading sub-sectors in Angola’s power generation sector include the provision of equipment for use in small-scale, off-grid projects including diesel and gas turbine generators; the development of utility-scale dispatch centers for energy load management; transmission expansion; and substation development.
Power generation and solutions companies active in Angola’s energy sector include power technology company, General Electric (GE); power technology provider, Cummins; construction machinery and equipment company, Caterpillar; and manufacturing company, Westinghouse Electric Corporation.
Renewable Energy
With numerous hydro and solar projects due to come online in the coming years, external financing and private project development will be key towards supporting the southern African country’s green energy agenda, with service companies representing key drivers of the renewable energy market.
Angola’s Ministry of Energy and Water has identified approximately 100 locations for the development of small-scale hydro projects capable of producing up to 600 MW of renewable energy. The country’s 960 MW Cambambe I and 700 MW Cambambe II hydro power projects have seen the participation of service companies such as EPC contractor, Novonor; electromechanical systems and services provider, Andtriz Hydro; global technology company, Voith; and renewable energy company, GE Renewable Energy. Additionally, the Laúca hydroelectric power plant, situated in the country’s Kwanza Norte Province, involved contributions from Novonor; consulting and management company, Intertechne; construction engineering company, Elecnor; and consulting companies, SRK Consulting and Coba Consulting.
Endowed with significant solar potential, various projects have been approved for development by the government as part of the country’s Angola Energy program, which aims to install 800 MW of solar energy capacity by 2025. A project led by engineering and project development company, MCA Group, will develop the country’s flagship 370 MW solar power project, which will be comprised of seven photovoltaic plants, consisting of approximately one million solar panels. Additionally, with aims to begin commercial operations by 2024, the 35 MW Quilemba Solar Power Station is being spearheaded by TotalEnergies in partnership with Sonangol and solar systems solutions provider, Greentech. Other development companies active in Angola’s solar energy space include solar project developer, AfricaGlobal Schaffer, and clean energy solutions company, Sun Africa.
As the opportunities for service companies expand, the Angola Oil & Gas (AOG) conference and exhibition provides the ideal platform where new deals can be signed and partnerships forged. As the official meeting place and investment platform for the Angolan energy sector, AOG 2023 will connect investors and project developers with projects. Keep watching Energy Capital & Power’s website and social media channels for more information regarding the 2023 edition of this exciting event.
Source: Energy Capital & Power.