Electrical engineering firm ProMarks and industrial conglomerate Trafigura have entered into a Memorandum of Understanding (MoU) with the Angolan government to conduct a technical and economic feasibility study and develop a public-private partnership (PPP) model for a major regional power transmission and supply project.
Green Electricity Interconnector
The proposed project involves the construction and operation of a 2,000 MW high-voltage direct current (HVDC) transmission line to transport surplus green electricity from hydroelectric dams in northern Angola to the Democratic Republic of Congo (DRC) Copperbelt and Zambia, integrating with the Southern Africa Power Pool.
Renewable Energy Supply and Demand
The renewable electricity will be purchased from Angola’s National Electricity Transmission Network and sold to customers, including global mining companies in the Copperbelt and other countries within the Southern African Development Community (SADC).
Angola’s Energy and Water Minister, João Baptista Borges, emphasized the project’s importance for regional integration and economic development in Southern Africa.
Minister’s Statement
“Angola is fortunate to have a surplus of energy that it can share with SADC countries, specifically Zambia and the DRC. The private promoters of this project will ensure its realization and enable this interconnection, contributing to wealth creation and economic growth through the commercialization of clean energy. This project will provide a cheaper and non-polluting energy source, reducing emissions and promoting the planet’s sustainability,” said Minister Borges.
Project Development and Financing
The joint venture between ProMarks and Trafigura will undertake the development, financing, construction, and operation of the electricity interconnector. The project is expected to be financed through a combination of equity capital and third-party debt.
The companies anticipate that the planning, securing approvals, and construction phases will take approximately four years from the final investment decision. The three parties will now proceed with the viability studies outlined in the MoU to define the next steps in project development.
Potential Impact on Angola’s Electricity Sector
ProMarks’ executive director, Elísio Augusto, highlighted the project’s potential significance, stating, “Angola is harnessing the full potential of its hydro and solar resources to produce energy in a clean and sustainable way. The interconnector project, along with the Caculo Cabaça Hydro dam, could be a pivotal project for the electricity sector, attracting substantial new revenues for Angola and facilitating a return on the government’s investment in energy production.”
Trafigura’s Interest and Strategic Position
Trafigura, as part of the Lobito Atlantic Railway consortium, is interested in investing in and co-developing the project as a long-term PPP.
The company’s existing customer base in the region, particularly those benefiting from the Lobito Atlantic Railway, positions it well to secure long-term energy supply agreements.
Meeting Growing Energy Demand
Julien Rolland, Trafigura’s head of strategic projects and investments and a Lobito Atlantic Railway board member, noted, “We are witnessing a significant increase in power demand across the Copperbelt region, driven by growing mining activities that are supported by the logistics provided by the Lobito Atlantic Railway.” This project aims to meet this growing demand with clean energy from Angola.