Angola is turning to solar energy

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.

Electricity for 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.

Bild: Solarzellen
Bild: Arbeiter installiert Solarpanels

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 syndicate formed by eight banks is providing a buyer credit structured by Standard Chartered Bank for the transaction. The Federal Government assumed supplier and buyer credit cover.

“We are proud that we, as ECA, can support this sustainable project with Export Credit Guarantees”, said Edna Schöne, member of the Board of Management of Euler Hermes Aktiengesellschaft. “The project is not only highly important for Angola and sub-Saharan Africa but also helps to protect our planet due to the sizeable savings of greenhouse gas emissions”, continued Ms Schöne.

The hybrid photovoltaic systems will supply electricity from 2025 onwards. This means that the project is on schedule for “Angola Energia 2025”.

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