USAID Southern Africa Energy Program Angola

Helping Southern Africa increase power generation and access while promoting investment in the energy sector for a brighter, more sustainable future.

Angola’s current electrification rates are estimated at 43% in most cities and less than 10% in rural areas.  The Government of Angola has set a target of 9,900 megawatts (MW) of installed generation capacity and a 60% national electrification rate by 2025.  The USAID Southern Africa Energy Program (SAEP), a Power Africa initiative, is providing support to the national electricity distribution company, Empresa Nacional de Distribuição de Electricidade (ENDE) and the national electricity transmission company, Empresa Rede Nacional de Transporte de Electricidade (RNT) as they tackle these electrification challenges and build a stable, connected transmission network.

MOBILIZING DEVELOPMENT FUNDING

In March 2020, the African Development Bank (AfDB) announced a multimillion-dollar loan to Angola’s power sector under the first phase of the Energy Sector Efficiency and Expansion Program (ESEEP).  ESEEP consists of three components: the construction of a 343-kilometer Central–South transmission line, installation of prepaid meters to improve revenue collection, and program management for project design and implementation.  The Program aims to reinforce the operational capacity of Angola’s power distribution while increasing the wheeling capacity of the countrywide transmission system.  SAEP has been partnering with RNT and ENDE since October 2019 to prepare loan application documents and critical procurement documents needed to meet AfDB’s funding timelines and support the execution of this ground-breaking program.  

SUPPORTING ELECTRIFICATION EXPANSION

Angola’s distribution utility, ENDE, is expected to be at the forefront of the country’s electrification efforts.  ENDE’s primary focus is to distribute and market electricity nationally through the operation of distribution grid assets.  In 2019, ENDE had 1.8 million customers across 18 distribution centers.  Of these customers, only around 600,000 are connected to paid electric meters.  The rest are billed based on monthly average consumption.  

SAEP is supporting ENDE to effectively and efficiently install over 1.2 million prepaid meters over the next five years. A key component of this support was to assist ENDE in the design and set-up of a Project Implementation Unit (PIU), which has been successfully completed.  The PIU will manage all aspects of the AfDB energy program, including the procurement and installation of prepaid meters and supporting infrastructure.  Further areas of support comprise the development of the procurement plan and the strengthening of ENDE’s Commercial Department to ensure customers are better served and revenue management is improved.

STRENGTHENING ANGOLA'S TRANSMISSION BACKBONE

Currently, the Angolan power system comprises three isolated transmission networks: Northern, Central, and Southern..  RNT has the mandate to implement a national transmission backbone, connecting the Central to the Southern system with a 343 km line from Huambo to Lubango with substations associated to it.  SAEP is working with RNT to establish a PIU with a dedicated RNT team to manage the project.  The approach focuses both on the preparation and implementation phases of the Central–South transmission backbone project.  

IMPROVING THE REGULATORY ENVIRONMENT

SAEP is supporting the Angolan Regulatory Authority for Energy and Water (IRSEA) to develop a roadmap that addresses gaps in the regulatory environment impeding investor confidence in Angola. SAEP is consulting with the management and senior staff of the organization and reviewing specific strategy documents to help shape the roadmap for IRSEA and Angola.

CONTACTS

SAEP is funded by the United States Agency for International Development (USAID), in support of the U.S. Government’s Power Africa initiative.  Power Africa brings together the collective resources of over 170 public and private sector partners to double access to electricity in sub-Saharan Africa.  Power Africa’s goal is to add more than 30,000 MW of new electricity generation capacity and connect 60 million new homes and businesses to power by 2030.  USAID supports Power Africa through programs that bring together technical and legal experts, the private sector, and governments from around the world to work in partnership to increase the number of people with access to power.