Angola, the second-largest African nation in terms of installed hydroelectric capacity, is set to further solidify its position with ongoing and future projects that will create a surplus of electricity.
To maximize the benefits of this surplus, the country is exploring opportunities to export power to neighboring regions.
Collaboration for Regional Power Integration:
On July 4th, ProMarks, an international energy engineering firm, and Trafigura, a global commodities trading leader, signed a Memorandum of Understanding (MoU) with the Angolan government.
This agreement aims 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.
Connecting Hydropower to the Southern African Power Pool:
The envisioned project involves constructing and operating a 2,000 MW high-voltage direct current (HVDC) transmission line, referred to as an “interconnector.”
This interconnector will transport surplus green electricity generated by hydroelectric dams in northern Angola to the Democratic Republic of Congo (DRC) Copperbelt and Zambia, integrating with the Southern African Power Pool (SAPP).
Promoting Regional Development:
Angolan Minister of Energy and Water, João Baptista Borges, emphasized the significance of this project for regional integration in Southern Africa and the economic and social development of the countries involved. The project aligns with Angola’s commitment to utilizing its abundant energy resources to foster regional prosperity.
Sharing Surplus Energy for Mutual Growth:
The minister highlighted Angola’s surplus energy capacity and its willingness to share it with SADC countries, specifically Zambia and the DRC. The private promoters of the project will play a crucial role in realizing this vision, facilitating the interconnection and contributing to economic growth through the commercialization of clean energy.
Project Implementation and Financing:
A joint venture between ProMarks and Trafigura will be established to develop, finance, construct, and operate the electrical interconnector. The project is expected to be funded through a combination of equity and third-party debt.
The planning, permitting, and construction phases are estimated to take approximately four years following the final investment decision.
Outlook for Regional Energy Cooperation:
This landmark agreement between Angola, ProMarks, and Trafigura represents a significant step towards regional energy cooperation in Southern Africa.
By leveraging Angola’s hydroelectric potential and establishing robust transmission infrastructure, the project aims to enhance energy security, promote economic development, and contribute to a more sustainable energy future for the region.