The Export-Import Bank of the United States (EXIM) has announced that it has approved a direct loan for more than $900 million to the Ministry of Energy and Water of Angola to support the construction of two photovoltaic solar energy power plants in the country.
The two solar power plants will generate over 500 megawatts (MW) of renewable energy, and help diversify Angola’s energy mix.
Additionally, U.S. solar panel mounting systems, connectors, switches, sensors, and other equipment will be used on the projects, as part of the loan conditions. The transaction is estimated to support 1,600 jobs.
“We are proud to take part in this important project, which will increase access to electricity in Angolan communities using clean energy technology,” said EXIM President and Chair Reta Jo Lewis.
“This transaction not only aligns with President Biden’s PGII initiative, but also advances EXIM’s efforts to promote clean energy exports, strengthen the U.S.-Africa commercial relationship and support U.S. exporters and American workers facing foreign competition,” added Lewis.
The project was initially announced in 2022 during the G7 Summit by the Government of Angola, U.S. firm AfricaGlobal Schaffer, and U.S. project developer Sun Africa.
According to EXIM, their support of the project advances US President Biden’s flagship Partnership for Global Infrastructure and Investment (PGII), which aims to advance digital and energy infrastructure worldwide.
The transaction also falls under EXIM’s China and Transformational Exports Program (CTEP), a congressionally mandated program to support U.S. exporters facing foreign competition from China.
The renewable energy project is expected to help Angola meet its electrification targets. The country aims to achieve a 100% electrification rate by 2030 in alignment with UN’s Sustainable Development Goals SDG7. The country increased its electrification rate from 33% in 2017 to 43% in 2021, raising the share of renewable energy in its energy mix from 59% in 2017 to 64% in 2021 respectively.