Sustainable Energy Fund for Africa grants US$ 1 million to stimulate renewable energy investments in Angola
The Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank, has approved a US$1 million grant to Independent Power Producers (IPP) in Angola to encourage private investment in renewable energy.
The SEFA grant, approved in July this year, will be used to establish a one-stop shop unit known as the Energy Project Implementation Support Unit (EPISU). SEFA technical assistance will work as an enabling environment for IPP/Public-Private Partnership (PPP) projects to improve bankability of projects. Additionally, it will address capacity-building issues by providing technical assistance on project procurement, contract design implementation and monitoring.
As part of its long-term development strategy, the Government of Angola aims to expand electricity access to 60% of the population by 2025, with an expected 70% to be derived from renewable sources.
“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”.
About the Sustainable Energy Fund for Africa (SEFA): SEFA is a multi-donor facility established to unlock private sector investments in small to medium sized clean energy projects in Africa, operating through three components: (i) grants to facilitate the preparation of renewable energy generation and energy efficiency projects towards bankability (ii) equity investments to bridge the financing gap for renewable energy generation projects and; (iii) support to public sector in improving the enabling environment for private investments in sustainable energy. SEFA is endowed with contributions from the Governments of Denmark, United States and the United Kingdom, and is hosted and managed by the Power, Energy, Climate and Green Growth Department of the African Development Bank.