Incentives and benefits

What is the corporate appetite for green energy, including any political or financial incentives available to corporates to adopt green energy?

Even though national and international companies have been showing interest to develop green energy structures in Angola, this is still something that has to be well studied and thought through it. However, there are already small dimensions of solar energy structures being developed, for example, but only for particular purposes.

Last modified 9 Feb 2021

The Australian market for corporate PPAs is poised to continue its significant growth. 

Solar and wind prices continue to fall, whilst wholesale electricity and gas prices continue to trend higher (notwithstanding some recent falls in 2020), so there is a base financial incentive for business to take up PPAs, however there is also a broader reputational element with companies wanting to 'go green'.

The key Federal Government policy in respect of renewable energy, the Renewable Energy Target (RET), has contributed to demand. The policy was originally designed to ensure that at least 33,000 GWh of Australia’s electricity came from renewable energy sources by 2020. The RET is comprised two separate schemes relating to large-scale and small-scale generation.

The large-scale RET (LRET) requires major electricity users to acquire a fixed proportion of their electricity requirements from renewable sources. This is achieved through a certificate trading scheme, where renewable energy generators receive certificates which are then sold to major energy purchasers (mainly electricity retailers). These certificates must then be surrendered annually as evidence that the liable parties LRET obligations have been met. Failure to do so can lead to financial penalties and shortfall fees. The second part of the scheme is concerned with small scale generation by individuals and businesses.

The Small-scale Renewable Energy Scheme (SRES) offers financial incentives for individuals and businesses to encourage the installation of rooftop solar and solar water heating systems. It operates using a certificate system similar to that administered under the LRET.

In September 2019, the Clean Energy Regulator announced that Australia had reached its RET target more than a year ahead of schedule. Notwithstanding this, both components of the RET are slated to continue to operate until 2030, with users still required to meet their obligations under the policy.   

The Clean Energy Finance Corporate1 (CEFC) and the Australian Renewable Energy Agency2 (ARENA) are two Federal-led support agencies encouraging renewable energy investment in Australia by providing information and finance. Their programs enable and provide various incentives in the renewables space which may encourage corporates to adopt green energy.  Both have had their mandates and funding extended in the 2020 Federal Budget – but their investment and funding criteria have been broadened so that grid stabilisation and reliability has become a sharper focus.

[1] CEFC is a specialist clean energy financier, investing to increase the flow of finance into renewable energy, energy efficiency and low emissions technologies.

[2] ARENA is an independent authority that aims to improve the competitiveness of renewable energy technologies and increase the supply of renewable energy in Australia.

Last modified 16 Dec 2020

For residential, commercial and industrial electricity customers, the NREAP’s objective of enabling its consumers to generate on-site, grid-connected, renewable energy power is incentivised by reducing the electricity bill through on-site power generation and the ability to credit the excess electricity fed back to the grid.

The Building Energy Labeling initiative was introduced to enable prospective tenants and buyers to consider energy performance into in their rental or purchase decision. By doing so, buildings are able to command a premium when being rented or sold, and therefore encourages building owners to implement energy efficiency measures to improve their rating. [1]

For new building and real estate developers, the NREAP’s objective of requiring integration of renewable energy technologies in the building design is also incentivised by reducing the electricity bill.

In regards to renewable energy developers and large electricity customers, NREAP’s objective to attract private investors to develop renewable energy projects through a competitive procurement process is incentivised by long-term power purchase agreements. [2]

[1] No. (4).
[2] No. (5).

Last modified 16 Dec 2020

There is a growing interest in concluding corporate PPAs for electricity produced from renewable energy sources. This trend is not entirely surprising, considering the growing importance of sustainability and responsible governance withing corporations. More in general, electricity from renewable energy sources is becoming more and more competitive, not only because of the subsidies available but also because of the general decrease in production costs.

Last modified 25 Feb 2021

There is certainly corporate appetite. There are currently no political or financial incentives available, although the Botswana Government is focussing on the utilization of green energy.

Last modified 9 Feb 2021

Considering the increase of the supply of power generated from renewable sources, the prices have become more competitive over time. This trend has generated an interest in the consumers to replace their power supply agreements, which use sources that cause more environmental impact, for renewable power. 

Also, corporate PPAs offer the possibility of associating offtakers’ brands to the financing and acquisition of renewable energy, which has shown to be very beneficial since, more than ever, both consumers and investors claim for companies that show their concern with the environment and sustainability and that have consistent ESG policies.

Last modified 16 Dec 2020

In our country there is an investment-friendly business environment which has been combined with policies and actions, which promote green energy generation and consumption strongly.

As we mention before, the last fifteen years our government consistently has implemented several policies for promoting that companies satisfy their energy demand through NCRE. These policies include a reduction in the payment of electricity transmission tolls, the obligation for electricity companies to have a percentage of withdrawals from NCRE sources, the establishment of investment support funds and the establishment of measures to facilitate the interconnection of generating plants, among others.

The measures approved by our government have resulted in a higher consumption of green energy by companies that grow every year.

Last modified 16 Dec 2020

In 2014 the Colombian Congress enacted Law 1715 to promote unconventional renewable energies. This law sets forth tax, regulatory and practical benefits for renewable energy investors in Colombia. See Subsidies for more information.

In 2019 the Congress enacted Law 1955/19 (so-called The National Development Plan 2018-2022), which commands retailing companies to purchase 8-10% of the energy provided to final users from renewable energy.

In line with this goal, in October 2019 the Ministry of Mines and Energy conducted an auction to award long-term power purchase agreements to renewable energy generators and to retailing companies as power purchasers. However, it is not yet foreseeable if the Colombian Government will organize a new renewable energy auction in the short term.

Finally, both legislation and government have identified that renewable energies could also be implemented in non-interconnected zones, in order to provide electricity by replacing diesel electricity generation. The National Development Plan also states that the FENOGE and public-private partnership initiatives will attract private investment for energy efficiency.

Last modified 16 Dec 2020

The importance of green energy has recently been growing significantly, mainly due to the negative consequences of traditional non-renewable sources, especially fossil fuels.

The topic of green energy is very topical in the Czech Republic. By signing the Paris Agreement, countries have committed themselves to moving away from fossil fuels and to ensuring carbon-free energy by 2050. It will therefore be necessary to switch to energy sources other than fossil fuels.

Green energy is also an issue for electricity suppliers. Many of them offer tariffs in which they guarantee that the electricity consumed has been entirely generated from renewable sources.

Different types of subsidies are available for families, mostly for the installation of a photovoltaic power plant for self-consumption or for the installation of a small solar power plant. The subsidies are mainly aimed at reducing energy consumption and saving money.

Last modified 26 Jul 2021

Besides the general objectives of the government to promote green energy, as stated in the Growth and Transformation Plan II[1] there are no specific political or financial incentives for adopting green energy. 

[1] Federal Democratic Republic of Ethiopia: Growth and Transformation Plan II (GTP II)
(2015/16-2019/20)

Last modified 18 Feb 2021

In the Finnish energy market, the solar and wind energy sectors are still fairly limited.

However, increasingly, companies have committed to reducing their carbon footprint and to sourcing electricity from renewable energy as an indication of being responsible actors in the market. In addition, PPAs allow companies to hedge against the significant level of price fluctuation in the Nordic market. In recent times the production costs of wind power have lowered and made it a commercially competitive source for long-term electricity supply.

According to the statistics published by the Finnish Wind Power Association in 2019, 5.987 TWh of electricity was generated by wind power (based on information from Energiateollisuus ry 29.1.2020), which covered approximately 7 % of Finland's electricity consumption. At the end of 2019, Finland had wind power capacity that totalled to 2 284 MW (754 wind power plants). 56 new wind turbines were assembled in 2019 (243 MW). Further, according to the statistics published by the Finnish Wind Power Association based on publicly available information on 26 April 2020 there were  wind power investments totalling 1 629 MW in Finland for which construction is already underway and by February 2020 appr. 18500 MW of wind power projects had been announced. Out of the 27 projects for which the construction is underway, at least six (6) has been announced to be based on PPAs.

These statistics indicate the great potential of PPAs in the near future in the wind power market.

Last modified 16 Dec 2020

There are no general political or financial incentives for corporations to adopt green energy. Corporate appetite for green energy is mainly driven by the desire of companies to be, or appear to be, sustainable (for example, in circumstances where a company has made various environmental commitments in furtherance of its level of sustainability). In light of climate change concerns and the growing public debate on sustainability of commercial activities, we expect that the corporate appetite for green energy will increase further in the near future.

Last modified 16 Dec 2020

There are no specific facilitations are provided yet under Italian law. Some facilitations are under discussion but the process is at an early stage.

Last modified 16 Dec 2020

Various corporates in Kenya are adopting green energy. These include:

  1. Mumias Sugar Company: generates 34MW of electricity from its bagasse-based co-generation plant;
  2. Kenya Breweries Limited: plans to generate at least 9.3MW at its Ruaraka plant and 2.4MW from solar power in Kisumu; and
  3. Kenya Tea Development Agency: has set up various hydropower plants throughout the country to reduce the significant energy costs associated with processing and manufacturing tea.

The primary reasons for this growing corporate appetite for green energy solutions include the need to:

  • reduce rising operation costs which are largely attributed to rising energy costs;
  • improve reliability of power supply;
  • obtain new sources of revenue; and
  • meet sustainability goals imposed by foreign-owned parent companies.

Beyond the incentives that are generally available in the market (e.g. tax exemptions for the importation of solar products) there are presently no specific incentives being made available to corporates as a means of encouraging the use of green energy.

Last modified 18 Feb 2021

Mexico has adopted aggressive international commitments to develop the use of green energy. The regulations provide that all consumers have to obtain a certain percentage of their electricity through renewable sources. This percentage is currently 7.4%, but in 2021, it will be increased to 10.9%, and in 2022 such percentage will be 13.9%. Increments for the following years will be announced by the Energy Ministry. The main responsible parties are the suppliers, who need to purchase the electricity from a portfolio of renewable generators in such a way, that their customers consume electricity from renewable sources to comply with these percentages. If such consumption minimum requirements are not met, the responsible party would need to purchase green energy certificates (by its Spanish acronym “CELs”)  in the Mexican market.

Last modified 16 Dec 2020

The Moroccan Government has set up its National Energy Strategy, which aims to reach 53% of electricity generation from renewable sources by 2030. This political incentive pushes the authorities to grant customs and tax incentives to corporates investment conventions.

There are, however, no specific financial incentives available to corporates that wish to adopt green energy.

Last modified 10 Feb 2021

The corporate appetite for green energy and incentives are still limited in Mozambique. Nevertheless, there are a few financial incentives provided for in Resolution No. 62/2009, of 14 October, which approves the Policy on Development of New and Renewable Energy. These include:

  • incentives based on prices and tariffs of new and renewable energies supply systems;
  • provision of special funding (subsidies) for projects and programs of new and renewable energy supply, utilizing funds, non-interest-bearing public loans or Government loan guarantees; and
  • promotion of carbon credits opportunity.

In addition, Law n.º 3/2012, of 23 January, which amends Articles from the Value-Added Tax (VAT) Code, provides for a deduction of 60% of the taxable amount, for construction services of rural electrification.

Last modified 1 Feb 2021

The appetite for green Corporate PPAs is growing, especially because this will help to enhance the achievement of sustainability goals and also because the available subsidies for green energy cover the difference between the cost price of generation and the market value of the electricity.

Last modified 16 Dec 2020

There is strong corporate appetite for green energy. The Norwegian Government offers several renewable energy incentives (and subsidies), most notably in recent years provided by way of and electricity certificate system. The certificate system requires certain producers and large consumers of electricity to purchase electricity certificates on the open market. The system will be phased out in 2021, however.

Many Norwegian corporations also view this as an important Corporate Social Responsibility issue.

Notably a number of large volume end-user corporate PPAs have been entered into with counterparties such as Norsk Hydro and Alcoa, to provide power for production of "Green Aluminium".

Last modified 16 Dec 2020

Currently there are not incentives for the green energies use.

Last modified 16 Dec 2020

The appetite for clean and sustainable energy amongst corporates in South Africa is growing rapidly, particularly given the recent increased focus on sustainability and environmental, social and governance (SESG) considerations globally and in South Africa. Notable cost reductions due to improvements and efficiencies in renewable energy technologies have also made it less expensive to generate electricity from these sources. We expect this trend to continue.

The Income Tax Act No. 58 of 1962 permits a taxpayer to claim a deduction on the costs incurred in respect of plant, machinery and articles owned by it, that are first brought into use by that taxpayer in the course of its trade in the generation of electricity from various renewable energy resources. For example, in respect of photovoltaic solar energy of more than 1MW, a taxpayer is allowed a deduction of the costs to the taxpayer of the asset producing the electricity on a 50/30/20 basis, being that a taxpayer is allowed a 50% deduction of costs in the first year of use, 30% in the second year and the balance in the third year of use. Where a photovoltaic solar energy system produces less than 1 MW of power, then the taxpayer is allowed a 100% deduction in the first year of use.

South Africa also introduced a carbon emissions tax under the Carbon Tax Act No. 15 of 2019 on 1 June 2019, which is to be implemented in three phases. The first phase is currently in implementation (the South African government has indicated that the impact of the carbon tax will be reviewed before the next phase is implemented in 2023). The carbon tax is levied on entities that operate emissions generation facilities at a combined installed capacity equal to or above certain carbon tax thresholds (which apply in respect of various activities). Certain allowances or offsets are available linked to (for example), emissions levels, trade exposure, participation in carbon budgets and investments in emission reducing projects.

Last modified 16 Dec 2020

There has been a significant increase in the appetite for PPAs in the past few years. Motivation for these contracts are varied:

  • Firstly, and most importantly, it protects consumers from volatility in energy prices and provides certainty in energy costs, similar to how large corporations protect themselves from other volatile economic aspects (exchange rate and interest rate).
  • Secondly, depending on the behaviour of future prices, the possibility to offer any excess electricity generated by the company from its exchanges to the wholesale market when market dynamics cause prices to surge could be of interest.
  • Finally, in terms of project finance structures the existence of a PPA with a robust corporate offtaker is regarded as very positive element by lenders.

Last modified 16 Dec 2020

Corporates in the Nordics are serious about their sustainability objectives, and Corporate PPAs can help to achieve this aim, as well as having the added benefit of hedging power price risk. A number of large corporates (with huge appetites for power) are based in Sweden, such as Tetra Pak (packaging), Preem (petroleum), Volvo Cars (automobiles), Volvo (trucks), Asko and Electrolux AB (household appliances), Telia Company AB (telecoms), Ericsson (telecoms), IKEA (furniture), Scania AB (trucks), Atlas Copco (industrial tools and equipment), SCA (pulp and paper), Sandvik AB (technology and engineering) and Kubal (aluminium). Furthermore, banks within the Nordic market are familiar with the importance of PPAs as part of their project financing structures for renewable projects, as a longer-term contract for a fixed price is helpful for a borrower's debt service. Finally, the Sweden government has been a prominent supporter of wind farm developers by cutting energy taxes and making sure that the regulatory system remain clear cut for those in the industry.

Corporate PPAs have gained favour in Sweden for a number of reasons. First, there has a been a trend recently where Sweden has been experiencing increasingly lower power prices, and February 2020 saw power prices fall below zero for the first time ever. Due to these falling prices a surplus of power production is likely, therefore developers/generators are looking to obtain financial certainty that Corporate PPAs bring although the main driver for price certainty has been financing banks' requirements.

Secondly, due to the favourable cold climate, a trend has been set in Scandinavia for large tech companies to establish data centres in the Northern part of Scandinavia and Finland and in that connection sign up to Corporate PPAs for their power consumption needs. In 2013 Google signed a its first wind PPA in Europe for a ten-year agreement with developer OX2 to power its data centre. This was followed in quick succession in the next few years where Google entered into a number of PPAs with almost all main developers (Eolus, Arise and Rabbalshede, all with sites based in Sweden).

Third, as the PPA market has developed, despite in the intermittent nature of renewable technologies, offtakers have increasingly been able to secure baseload PPA arrangements from green generation facilities. The opportunity to participate in green energy whilst retaining guaranteed levels of supply to meet demand have ensured that corporate demand in the PPA market has continued to burgeon in Sweden.

Last modified 16 Dec 2020

Not applicable.

Last modified 9 Feb 2021

We are seeing a range of drivers for green energy. 

For global companies, commitments made under programmes such as RE100 are pushing change.

For other companies, the long term economic benefit of hedging a substantial aspect of their cost base by adopting self-generation is substantial.   

Last modified 21 Jan 2021

Corporates in GB are developing a growing appetite for green PPAs, in recognition that investing in clean energy will help to improve green credentials, cut operational costs and contribute significantly to future-proofing their organizations in competitive markets. Rapid cost reductions in wind and solar power have made it less expensive to generate electricity from these technologies than from new coal or gas plants. As a result, there has been a great increase in wind and solar projects and this trend is expected to continue to grow.

Corporates in GB are increasingly joining voluntary renewable certification schemes, such as the RE100, an initiative of companies committed to consuming 100% renewable energy. Notable UK members of the RE100 include Burberry, Gatwick Airport, Heathrow Airport, H&M, and Tesco.

According to "Energy Trends March 2019" published by BEIS [1], renewable electricity generation in 2018 was 111.1 TWh, a record high and increase of 11.8% compared to the previous year. The share of renewables in electricity generation increased by 3.9% from 2017 to 33.3% and renewable electricity capacity was 44.4 GW at the end of 2018, a 9.7% increase compared to the previous year. According to energy market analysts EnAppSys, based on recent trends, renewables are expected to be the most dominant source of power in GB in 2020. With UK offshore wind farms now providing a relatively low-cost source of power compared to historic levels, wind is set to continue to be the primary source of renewable energy generation. These statistics suggest the significant potential of cPPAs in the near future.

In GB, there are no political incentives for corporates to enter into cPPAs, which are generally being concluded on a voluntary basis in GB. Whilst not a financial incentive per se, the ability for corporates to hedge against market price fluctuations over the long term is a key driver for many corporates to enter into cPPAs. Furthermore, subject to negotiation, corporates may secure long-term electricity prices at below-market levels.

[1] Energy Trends March 2019

Last modified 16 Dec 2020

The voluntary undertaking by private companies to purchase a certain minimum amount of renewable power to satisfy its energy requirements has become widespread. Public pressure continues to mount on commercial and industrial companies to develop a strategy to limit their contribution to carbon emissions via energy usage and industrial processes.   

Last modified 24 Mar 2021

Angola

Angola

To what extent are corporate PPAs presently deployed and what sort of structure do they take?

Corporate PPAs remain uncommon in Angola. 

Article 48 of the Electricity General Law provides that outside the scope of the public electric system, the conditions of sale of electric energy will be established by the parties.

Article 15 of the Executive Decree No. 122/19 of May 24 (electric energy sales tariffs) provides special arrangements for the sale of electricity by means of special or bilateral contracts between producers and distributors and those with final customers, under the terms set out in the Tariff Regulations (Presidential Decree No. 4/11 of January 6) shall be authorized by an order of the Minister of Energy and Waters, after hearing the regulatory authority.

All the contracts with National Transportation Network ("RNT" as a sole buyer must comply with certain requirements specified in Article 11 of the Presidential Decree No. 4/11 of January 6 as amended by Article 11 of the Presidential Decree 178/20 of June 25, in order to their prices are allocated to tariffs.

Do the country's regulators allow corporate owners to purchase (1) directly from a facility, or (2) from a choice of suppliers?

In accordance with Article 11 of the General Electricity Law, the use of the facilities and networks that incorporate the Public Electricity System is allowed under the conditions provided for in the aforementioned regulation or agreed between the interested parties and their holders, as long as the supervisory body approves it after prior validation by the regulatory authority.

Hence, corporate owners are allowed to purchase directly from a facility or a choice of suppliers, as long as it has been approved by the supervisory body and has effectively gone through a prior validation from the regulatory authority.

Other than the generator and the off-taker, are any third parties commonly party to the PPA structure (e.g. a utility or other market agent)?

In addition to the electrical energy provided by the Company ENDE E.P (National Electricity Distribution Company) that comes from hydraulic dams and private generators, so far, there are no other third parties as a common party to the cPPA structure.

Is a generator permitted to sell electricity directly to an end user? If so, do they require a licence or other form of authorization?

As previously stated, Article 48 of the Electricity General Law provides that outside the scope of the public electric system, the conditions of sale of electric energy will be established by the parties.

Last modified 9 Feb 2021

Angola

Angola

What are some of the technical, political, financial or regulatory challenges to corporations adopting green energy in the short/medium term in your country and how have these challenges been overcome (or how can they be overcome)?

More incentives and benefits need to be created for companies that want to implement green energy systems. Facilitating the process of importing and accessing currencies to pay for equipment to implement the projects related to renewable energy is necessary. Governments should create incentives for companies that are implemented across the country, thereby creating employment and facilitating greater acceptance of new technologies in rural areas.

Last modified 9 Feb 2021

Angola

Angola

Are there any anticipated regulatory changes which will alter the regulatory landscape for corporate green energy and corporate PPAs?

International development partners are providing technical support to the Angolan government to establish a regulatory framework which includes negotiating power purchase agreements with independent power producers (IPPs) and design of a feed-in-tariff scheme for renewables.

Last modified 9 Feb 2021

Angola

Angola

What is the corporate appetite for green energy, including any political or financial incentives available to corporates to adopt green energy?

Even though national and international companies have been showing interest to develop green energy structures in Angola, this is still something that has to be well studied and thought through it. However, there are already small dimensions of solar energy structures being developed, for example, but only for particular purposes.

What are the key local advantages of the corporate PPA model which can benefit our clients?

The key local advantage of the corporate PPA model in Angola is energy security and easier access to financing having the corporate PPA as collateral.

What subsidies are applicable to the generation and sale of renewable energy?

This information has not been made public.

Does your country implement a national support scheme with tradable green certificates (such as guarantees of origins)?

Not yet, as green energy has not yet been implemented.

Last modified 9 Feb 2021

Angola

Angola

To the extent corporate PPAs are deployed, how are prices, terms and risks affected?

Do prices tend to be floating or fixed?

According to Article 26 of the Presidential Decree 178/20 of June 25, the tariff structure is applied by the RNT concessionaire and by the distribution companies to users connected to their networks. Along these lines, this same diploma, on its article 27, establishes that the tariff structure reflects the costs to which users give rise, according to the characteristics of consumption and the level of tension to which they are connected, regardless of their social or legal character and the final destination give to the energy consumed. 

Hence, the prices are fixed considering the elements above mentioned.

What term is typically agreed for the PPAs?

There is not a fixed-term for cPPAs it all depends on the activity to be exercised. However, it is important to mention that the tariff regime is, in general terms, in force in a four-year tariff regime. Alongside with that, the tariff period is defined by a specific diploma by the Sector Regulatory Entity, which must be multiannual, as established on Article 28-A of the Presidential Decree 178/20 of June 25.

Are the PPAs take-or-pay or limited volume?

Not applicable.

Are there any other typical risks?

Not applicable.

To the extent corporate PPAs are deployed, in whose favour will the risks typically be balanced?

Volume risk

The risk is born by those who not comply with rule applicable to the specific situation.

Change in law

Usually, when changing legislation, users and distributors are given a period to prepare and adapt to this mentioned change of legislation. Hence, when there is a change in law non complied with, the risk is born by those who have not complied with the rule in place.

Increase / reduction of benefits

Again, similar to the change in law, the risk is born by those who not comply with rule applicable to the specific situation.

Market liberalization (if applicable)

Not applicable.

Credit risk

The risk is born by those who not comply with rule applicable to the specific situation.

Imbalance power risk

The risk is born by those who not comply with rule applicable to the specific situation.

Production profile risk

The risk is born by those who not comply with rule applicable to the specific situation.

Last modified 9 Feb 2021

Angola

Angola

Does your country operate a balancing responsibility scheme?

Not applicable.

If your country operates a balancing responsibility scheme, who is the balancing authority and do the generator and offtaker typically undertake balancing themselves?

Not applicable. 

Last modified 9 Feb 2021

Angola

Angola

What significant transactions/deals have taken place in the last 12-18 months?

Laúca Hydroelectric Power Plant

According to the Government, Laúca Hydroelectric Power Plant (“AH Laúca”) is the largest work in the country today. The Project was commissioned by the Angolan Executive, represented by the Ministry of Energy and Water, and is carried out by ODEBRECHT. COBA and LA MAYER carry out the supervision of the implementation of the project. When AH Laúca is 100% operational, it will produce more than twice as much energy as the other two dams already operating on the Kwanza River. This energy potential will serve 8 million people. AH Laúca will produce 8,643 GWh (gigawatts) of electricity, representing an installed capacity of 2,070 MW (megawatts).

The realization of the project demands great infrastructure support. Because of this, AH Laúca is today a city that is composed by: Leisure area; Sports area; Accommodations; Kitchen and Cafeterias and Medical Center.

AH Laúca is a pole of job and income generation. The project is also committed to providing opportunities for national talent. Today, the enterprise has 8,458 Members. Of these, 8,035 are national, which represents 95% of the entire productive force involved in the execution of the work. The remaining 423 are expatriates, a number that represents 5% of total members.

Through the Acreditar Program, the project offers basic and specific training to AH Laúca Members and also to the residents of the communities surrounding the construction site.

AH Laúca is 86% ahead of Civil Works, 72% ahead of Electromechanical Assembly and 14% in the Energy Transport System. Always overcoming challenges and fulfilling all the goals set with safety, quality and productivity.

2nd Hydroelectric Power Plant of Cambambe and Dam Alignment

With the conclusion of the Cambambe 2nd Power Station and the Dam Raising, it was possible to obtain an additional power of 780MW. This power is helping to reduce the energy supply deficit in the Provinces of Luanda, Kwanza Sul, Malanje, Uige, Kwanza Norte and Bengo.

It will also allow the interconnection of the North-Central Systems with the Benguela Province link, thus reducing production costs and the consumption of diesel for energy production.

More than 10,000 construction posts have been created as part of the temporary work in the rehabilitation, modernization and extension of the hydroelectric complex. The construction owner was GAMEK (Gabinete de Aproveitamento do Médio Kwanza) and the contractor was ODEBRECTH.

Solar village program

The main objective of the Solar Village Programme is electrification, through the installation of autonomous solar photovoltaic systems (isolated) in infrastructures Social, including: Schools; Medical Posts; Police Posts; Administrative Buildings; and, Social Jangos, including Public Lighting Posts.

In the 1st phase of the Programme, awarded to the company Elektra Electricidade e Águas, Lda, 11 localities were selected from 4 Provinces in the country: Bié, Kuando Kubango, Malange and Moxico. This phase has been completed since 2011, with a total of 156,660 Wp of 42 systems and 70 public lighting posts implemented.

In some cases, a system provides electricity to more than one infrastructure. So far, 50 infrastructures have benefited from the electricity supply, namely: 15 schools, 18 medical posts, 1 maternity ward, 1 police station, 1 police station, 9 administrative residences, 1 nurse's residence, 3 administrations.

In the 2nd phase of the Solar Village Programme, four companies were selected for the installation of a total of 75 systems and 160 streetlights.

As part of the 3rd phase of the Solar Village Programme, the project has already started after the Auto de Consignation signed with the Company LTP Energias S.A. The project will benefit the provinces of Kwanza Sul, Cuando Cubango and Lunda Sul, whose aim is to supply electricity to the communities with Solar Photovoltaic Systems of Auto-consumption Kits and Public Photovoltaic Lighting.

It is part of the energy and water sector action plan 2018-2002, to continue the Solar Village Programme and to ensure adequate maintenance of its infrastructure and test a new concept of a 100% solar mini network, based on batteries, to electrify the most isolated municipality headquarters, avoiding fuel logistics.

What transactions/deals are anticipated to come to market in the next 12-18 months?

See Past transactions

Last modified 9 Feb 2021