Energy Usage In Angola: Average Power Consumption Explored

Energy availability in Angola is a pressing issue, with frequent blackouts and a heavy reliance on diesel generators outside of urban areas. The country's energy mix consists of hydropower, fossil fuels, and a small percentage of hybrid energy sources, with a current installed capacity of 5.7 GW, of which only 70% is utilised. The average Angolan consumes energy from these sources, with the country's economy and population growth driving an increasing demand for power. Angola's government has set ambitious infrastructure goals to increase electrification and generation capacity, aiming for 60% electrification by 2025, and Power Africa is playing a key role in supporting these developments.

Power Africa's involvement

Power Africa, in collaboration with the African Development Bank (AfDB) and the Government of the Republic of Angola, is working to build transmission and distribution infrastructure to improve access to electricity in Angola. The infrastructure will evacuate around 1,000 megawatts (MW) of energy from North to South, strengthening the financial viability of the power sector and connecting Angola to regional markets. This is being done to support the Government of Angola's goal of 60% electrification by 2025. Power Africa is also working to expand electricity infrastructure and facilitate new electricity connections for homes and businesses, ultimately contributing to Angola's continued economic development.

Power Africa has supported the development of electricity generation projects in Angola. Various firms have also received U.S. Embassy support to move transactions forward. Power Africa is partnering with the African Development Bank (AfDB) and the Government of Angola to build critical transmission infrastructure in Angola.

Angola's energy consumption is primarily from biomass (58%), oil (35%), gas (4%), and hydroelectric power (3%). Angola's economy is among the fastest-growing in the world, and investment in energy infrastructure is key to its economic development.

Angola's energy sources

Oil

Angola is the second-largest producer of crude oil in sub-Saharan Africa and is set to become the largest producer in Southern Africa. Oil accounts for 35% of the country's energy consumption, and in 2022, Angola produced an average of 1.165 million barrels of oil per day. The country's economy was significantly impacted by the drop in oil prices in 2014 and 2020, highlighting its dependence on this energy source.

Gas

Gas accounts for 4% of Angola's energy consumption. In 2022, a final investment decision was made to develop the Quiluma and Maboqueiro non-associated gas fields to maintain the supply of gas to the Angola LNG facility.

Hydroelectric Power

Hydroelectric power accounts for 3% of the country's energy consumption. Angola has strong hydropower generation potential that remains underutilised. The state-owned generation company has about 60% of its installed capacity in hydro, with the remaining primarily diesel-fired thermal.

Biomass

Biomass is the most significant energy source in Angola, accounting for 58% of the country's energy consumption.

Renewable Energy

Angola has been increasing its usage of renewable energy sources. The International Renewable Energy Agency (IRENA) reports that renewable energy usage increased from 50% of the total energy supply in 2015 to 63% in 2020. Within this sector, bioenergy represents 85% of the renewable energy supply as of 2020, indicating a shift towards more sustainable resources.

Power Africa's Involvement

Power Africa, in collaboration with the African Development Bank and the Government of Angola, is working to improve the country's energy infrastructure. The goal is to achieve 60% electrification by 2025 by expanding electricity infrastructure and facilitating new connections for homes and businesses. This includes building transmission and distribution infrastructure to evacuate around 1,000 megawatts (MW) from North to South, improving access to electricity and connecting Angola to regional markets.

Angola's energy infrastructure

One of the key challenges Angola faces is its severe energy deficit, despite possessing vast indigenous energy resources. To address this, the country has embarked on several infrastructure projects to boost its generation capacity. For instance, the expansion of the Cambambe hydroelectric power plant, supported by the Multilateral Investment Guarantee Agency (MIGA), aims to increase Angola's generation capacity from 1,500 megawatts to over 5,000 megawatts. The project involves the construction of a second powerhouse with four additional turbine generators and is expected to boost the country's installed power generation capacity by more than 30%.

In addition, the construction of the Laúca dam on the Kwanza River, with a production capacity of 2,070 megawatts, is set to double the country's energy capacity. The dam, built by the Brazilian company Odebrecht, stands at a height of 156 meters and is over 1.2 kilometres wide, costing a total of $5.4 billion. The project is expected to have a significant impact on the Angolan economy, enabling the establishment of new industries that will benefit from cheaper and more reliable energy sources.

Moreover, Power Africa, in collaboration with the African Development Bank (AfDB) and the Government of Angola, is working to build critical transmission and distribution infrastructure. This partnership aims to improve access to electricity, strengthen the financial viability of the power sector, and connect Angola to regional markets. These efforts support the Government of Angola's goal of achieving 60% electrification by 2025.

Overall, Angola's energy infrastructure is undergoing significant developments to address the country's energy deficit and support its economic growth. By diversifying energy sources, expanding generation capacity, and improving access to electricity, Angola is striving to build a more resilient and sustainable energy sector.

Angola's energy exports

Angola is the second-largest producer of crude oil in Africa and is set to become the largest producer of crude oil in Southern Africa. However, the country's economy suffered a sharp drop in 2014 and 2020 due to a decline in oil prices. Oil accounts for 35% of the country's energy consumption, while biomass accounts for 58%, gas 4%, and hydroelectric power 3%. Angola's economy is heavily dependent on oil, with oil spills causing environmental damage and frequent daily blackouts.

In recent years, Angola has shifted its energy strategy towards sustainable resources, reducing its dependence on conventional fuels. The country has set a foundation for the development of renewable energy sources, with hydropower being the most prominent. Angola aims to almost double its capacity by 2025 to 10 GW and increase its electrification rate to 60%. The country's current installed capacity is estimated at 5.7 GW, with 61.8% hydropower, 37.6% other fossil fuels, and 0.6% hybrid solar/fossil fuel.

To achieve its energy goals, the Angolan government has instituted an ambitious infrastructure plan, partnering with the African Development Bank (AfDB) and Power Africa to build critical transmission infrastructure. These projects aim to improve access to electricity, strengthen the financial viability of the power sector, and connect Angola to regional markets. The government is also pursuing small-scale off-grid projects, using both fossil fuels and renewable technologies, to address rural demand.

The Angola 2050 strategy has set an objective of having 60% renewables in the electricity mix by 2035 and aims to reduce GHG emissions by 21% by 2030. The country has also committed to producing 200 MW of renewable energy by 2025, with plans to update this goal to 1 GW. This includes a 380 MW solar project developed by a U.S. company and a 50 MW solar plant in southwestern Angola.

Angola's transmission infrastructure consists of three major grid systems (northern, central, and southern) and isolated grids in the east. The government plans to link these grids through a north-central-south backbone, expanding the grid from 3,354 km to 16,350 km by 2025. Additionally, Angola is a non-operating member of the Southern African Power Pool and has plans to connect to the pool through the Baynes Dam project with Namibia.

Angola's energy future

The country's current energy mix consists of hydropower, fossil fuels, and a small percentage of hybrid solar/fossil fuel sources. However, Angola has a great potential for renewable energy production, with mapping studies identifying opportunities for solar power, wind power, and hydropower. The government is pursuing small-scale off-grid projects using both fossil fuels and renewable technologies to address rural demand.

International Renewable Energy Agency (IRENA) reports show that Angola's renewable energy usage increased from 50% of the total energy supply in 2015 to 63% in 2020, indicating a shift towards sustainable resources and a reduction in the country's previous dependence on conventional fuels like oil and gas. Angola is Southern Africa's second-largest oil and gas producer, but it aims to become an energy superpower with an array of renewables.

To support the country's goals, Power Africa, the African Development Bank (AfDB), and the U.S. Agency for International Development are partnering with the Angolan government. These collaborations aim to improve access to electricity, strengthen the financial viability of the power sector, and connect Angola to regional markets. The construction of the Baynes Dam hydroelectric plant in partnership with Namibia and the potential connection to the Democratic Republic of Congo through the Inga Dam are notable initiatives in this regard.

The Angolan government is also working to improve the regulatory environment and attract private investment in the energy sector. The General Electricity Law, approved in 2015, established a legal framework for independent power generation, and the government is taking steps to improve energy regulation, planning, and procurement. These efforts are critical to attracting new private investment and independent power producers, which are currently lacking in the country.

In summary, Angola's energy future looks promising, with a focus on increasing access to electricity, diversifying energy sources, and transitioning to renewable energy. The country is making significant strides in infrastructure development, regulatory improvements, and international collaborations to achieve its energy goals and become an energy superpower in Africa.

Frequently asked questions