Angola to Build 65 Solar Mini-Grids with $1.6 Billion EXIM Grant

In a significant boost to Angola’s renewable energy infrastructure, the Export-Import Bank of the United States (EXIM) has authorized a landmark $1.6 billion direct loan to finance the development of 65 solar photovoltaic mini-grids across the nation. This ambitious project is set to deliver critical access to electricity and clean water to underserved communities in four of Angola’s southern provinces: Cunene, Huila, Namibe, and Cuando Cubango.

A Strategic Partnership Highlighting Angola to Build 65 Solar Mini-Grids with $1.6 Billion EXIM Grant

The initiative, a collaboration between U.S.-based Sun Africa, ING Capital, and Omatapalo, will integrate the solar mini-grids with advanced energy storage systems. This design ensures a reliable power supply for water collection, treatment, and purification facilities, tackling the dual challenges of energy poverty and water scarcity simultaneously. The project builds upon EXIM’s existing commitments in the region, including a prior $900 million loan that supported the development of two large-scale photovoltaic solar power plants capable of generating over 500 megawatts.

Economic and Diplomatic Impact of Angola to Build 65 Solar Mini-Grids with $1.6 Billion EXIM Grant

This financing underscores a strengthening economic relationship between the United States and Angola. Reta Jo Lewis, President and Chair of EXIM, emphasized the project’s alignment with key U.S. objectives. "Today’s approval underscores our firm commitment to championing renewable energy projects, supporting U.S. exporters doing business in sub-Saharan Africa, deepening our economic relationship with Angola, and advancing President Biden’s Partnership for Global Infrastructure (PGI) initiative," Lewis stated. The venture is also projected to have a substantial domestic impact, supporting an estimated 3,100 U.S. jobs and promoting American exports.

Advancing Angola’s Renewable Energy Goals with Angola to Build 65 Solar Mini-Grids with $1.6 Billion EXIM Grant

This development is a cornerstone of Angola’s National Strategy for New Renewable Energies, which targets generating at least 7.5% of the country’s electricity from renewable sources by 2025. The government is actively promoting rural electrification by engaging the private sector through fiscal incentives and public tenders for mini-grid installations. The nation is capitalizing on its abundant solar resources, with projects already underway across several provinces. This new initiative follows the successful completion in 2022 of Angola’s first two major solar plants in Biópio and Baía Farta, which collectively utilize over 500,000 solar panels to produce 285 MW of clean energy.

Sources

1. Angola Secures $1.6B Loan for 65 Solar Mini-Grids
2. US EXIM Bank approves US$1.6B for Angola’s solar energy
3. EXIM Invests $1.6 Billion In Solar Mini-Grids To Boost Angola’s …
4. EXIM Bank Approves $1.6 Billion Loan for Angola Solar Project
5. Business News – Angola: Over 500,000 solar panels in … – Lusa
6. Export-Import Bank of the United States Board of Directors Approves …
7. Application for Final Commitment for a Long-Term Loan or Financial …
8. Angola secures another US Exim loan for solar and water project