Typical PPA terms and risk allocation

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.

Last modified 9 Feb 2021

Do prices tend to be floating or fixed?

Prices are generally fixed, but we are seeing some corporates push for cap and collar mechanisms in an attempt to more evenly distribute and balance risk between corporate entities and electricity generators.

What term is typically agreed for the PPAs?

Recent corporate PPAs in Australia have had terms ranging from 7 to 15 years, with the majority being for 10 years. The term is largely linked to the current regulatory regime which provides certainty of green credit only to 2030, as such many corporate PPAs expire in 2030.

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

Usually the PPA will set out the maximum annual quantity mechanism, with payment based on an output basis.

Corporates don't always take all the capacity from a renewable facility, and often prefer not to due to the risk of asset transfer pursuant to lease accounting, therefore sharing of off-take is likely to become more common.

Are there any other typical risks?

In Australia, the risk of a change in law remains relevant for parties seeking to contract in this space, however despite the fierce public debate, on-the-ground regulatory change is slower to be implemented, allowing developers with an opportunity to adapt their projects as required.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

Information not publicly available.

What term is typically agreed for the PPAs?

A contract shall be drawn up according to the model form of contracts approved by EWA.

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

Information not publicly available.

Are there any other typical risks?

Information not publicly available.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

All options are possible.

What term is typically agreed for the PPAs?

The typical term of PPAs is from 10 - 15 years.

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

There is no market standard structure currently in place for this type of commercial arrangement in Belgium.

Are there any other typical risks?

There is no market standard structure currently in place for this type of commercial arrangement in Belgium.

Last modified 25 Feb 2021

Not applicable.

Last modified 9 Feb 2021

Do prices tend to be floating or fixed?

There are a number of possible options: fixed prices, step prices adjusted over the term, and price indexation; hybrid forms of these alternatives are possible. Given the private nature of contracts, it is difficult to generalise on commonly used pricing arrangements across Brazilian market.

What term is typically agreed for the PPAs?

The usual term for a PPA in Brazil is within the range of 8 to 20 years.

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

The PPAs deployed in Brazil are usually structured as a take-or-pay combined with a monthly flexibility (usually between 10% and 15%) and yearly seasonality.

Are there any other typical risks?

For the main risks regarding corporate PPAs in Brazil, please refer to Challenges.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

Prices tend to be blended, but more fixed than floating. Price is usually stablished based on multiple factors, for example the price of coal, the CPI, and the spot market price, among others that reflect the cost of generating energy.  

What term is typically agreed for the PPAs?

An average of 10 up to 20 years. 

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

PPA’s can have both structures.

Are there any other typical risks?

Today the force majeure in PPA’s is limited, especially in those PPA’s subscribed between generators and the distribution companies. In such case, generator must acquire energy from the spot market for complying with the supply agreed. There are not many others risks.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

Fixed.

What term is typically agreed for the PPAs?

CPPAs are typically agreed for 2 years. However, current development of renewable energy projects in Colombia has led to the execution of long-term agreement (approximately 15 years).

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

Take-or-pay.

Are there any other typical risks?

Transmission or Interconnection Risk: CPPAs usually indicate that the generator party bears the risk of connecting the facility with the grid and transmitting power to the nearest substation. Normally the generator to bear all or a significant portion thereof.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

Given the private nature of contracts, it is difficult to generalise on commonly used pricing arrangements across CZ market.

The price of electricity is often adjusted in different ways in the contract; often the price of electricity consists of a fixed component, which covers the investment made by the producer, and a variable component, which relates to the quantity of electricity supplied. The same electricity price may be guaranteed for the entire duration of the contractual relationship or for individual sub-periods, with the possibility of further adjustments according to pre-agreed conditions.

The PPA agrees on the minimum and maximum amount of supply per year that the generator is obliged to provide to the customer. It is then common for the price arrangements to include an obligation for the customer to pay the fixed component of the electricity price even if it does not take the agreed minimum amount of energy per year; this ensures that the generator recovers its investment.

What term is typically agreed for the PPAs?

A specific feature of PPA contracts is their long-term nature, as a PPA contract is usually concluded for a period of 15 to 25 years, with no exception for automatic contract extensions

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

The legislation does not restrict the choice. It is therefore possible to have PPAs take-or-pay or limited volume.

Are there any other typical risks?

The question arises as to which party will bear the risk of changes in legal and tax regulations that may occur during the course of a long-term contractual relationship. Due to the requirements of banks lending the manufacturer's investment in the energy equipment, this responsible party is often the customer, who is not entitled to claim damages or other claims from the manufacturer in the event of a change in legislation.

Last modified 26 Jul 2021

Not applicable.

Last modified 18 Feb 2021

Do prices tend to be floating or fixed?

It is not possible to ascertain the standard approach to pricing in view of the low number of PPAs concluded so far and the limited publicly information available from the individual agreements.

What term is typically agreed for the PPAs?

According to the Finnish Wind Power Association, the typical term of PPAs is from 10 - 20 years.

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

The few concluded PPAs have generally been based on the take-or-pay principle.

Are there any other typical risks?

One of the typical risks is currency exposure, which may affect parties outside the Eurozone.

In addition, there is power transmission risk depending on the place of delivery. In the Nordics the fact that parties  to an agreement are located in different price zones or countries does not limit the possibility of entering into a contract. PPAs have been drafted between parties located in different countries.

These risks should be taken into account in PPAs as appropriate.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

To date there have been very few corporate PPAs deployed in Germany and there is a lack of publicly available information on the specifics of relevant transactions.

In many cases, corporate PPAs have only been used for marketing the production and sale of renewable energy from existing installations that – after 20 years following their commissioning – fall outside the support scheme. Therefore, at this stage, it is difficult to comment on general trends.

What term is typically agreed for the PPAs?

As above.

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

As above.

Are there any other typical risks?

As above.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

Short-term corporate PPAs (for a term of less than 1 year) usually have fixed prices.

Long-term corporate PPAs tend to have floating prices and are based on the market average price for electricity minus a fixed amount.

What term is typically agreed for the PPAs?

Corporate PPAs generally are short/medium-term contracts in Italy, generally providing for a 1-year duration whilst, in limited cases, also a 5-year term has been agreed.

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

Corporate PPAs generally are structured on a take-or-pay basis.

Are there any other typical risks?

Other typical risks are:

  • financial risk linked to the economic and financial standing of the purchaser;
  • construction delay and capacity shortfall; and
  • force majeure.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

Corporate PPAs: while there are currently limited examples, for direct wire PPAs, prices tend to be fixed and subject to escalation. 

PPAs with KPLC: the tariff applicable per kW/h is fixed, and KPLC is obliged to accept up to a certain capacity for the term of the PPA (take or pay basis).

What term is typically agreed for the PPAs?

Corporate PPAs: unknown but likely negotiated on a commercial basis.

PPAs with KPLC: 20 – 25 years.

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

Corporate PPAs: unknown but likely negotiated on a commercial basis.

PPAs with KPLC: previously always take or pay (but see above re: movement towards take and pay).

Are there any other typical risks?

Corporate PPAs: unknown but likely negotiated on a commercial basis.

PPAs with KPLC: political risks are typically accepted by the offtaker and backstopped by the Government (but see our note above re: this changing landscape).

Last modified 18 Feb 2021

Do prices tend to be floating or fixed?

Most PPAs, particularly the Self-Supply projects, are based on a percentage discount over the CFE standard rate.

What term is typically agreed for the PPAs?

Most PPAs are between 15 to 20 years. However, in recent years we have seen from 2 to 5 years.

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

Take-or-pay.

Are there any other typical risks?

Perhaps the only serious risk is a possible change in law that would increase the transmission rate, which would make the Self-Supply projects economically non-feasible.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

Fixed.

What term is typically agreed for the PPAs?

20 years.

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

Both options are possible.

Are there any other typical risks?

Not applicable.

Last modified 10 Feb 2021

Do prices tend to be floating or fixed?

Typically, prices tend to be fixed, and the parties contractually agree to an adjustment period. 

What term is typically agreed for the PPAs?

30 years.

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

Renewable technologies which may not be dispatched by the off-taker, particularly large dams, wind and solar, only follow the take or pay method for the deemed Capacity Payment (CP) method (“limited volume”).

The take or pay method is generally used in the long term gas supply agreements. PPAs, particularly thermal generation facilities, such as gas turbines, engines fuelled by diesel or heavy fuel oil and coal-fired generation facilities, briefly reference this method, however only for redirecting payment to the gas supply agreement.

Are there any other typical risks?

There are other typical risks, which include:

  • force majeure events;
  • political and legislative risks; and
  • change in control.

Last modified 1 Feb 2021

Do prices tend to be floating or fixed?

All options are possible. A combination with the market price as used for the SDE+ subsidy is also possible.

What term is typically agreed for the PPAs?

The typical term of PPAs is from 10 - 15 years, corresponding with the term of the SDE+ subsidy.

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

There is no market standard structure currently in place for this type of commercial arrangement in the Netherlands.

Are there any other typical risks?

See answer to previous question above.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

  • Large volume, long term end-user in renewables projects - fixed price
  • Smaller volume, shorter term, typically utility or institutional offtake counterparties - floating prices and floors/caps are more common.

What term is typically agreed for the PPAs?

Corporate PPAs usually have terms of 5, 10 or 15 years, but also up to 25 years. An EPA providing for offtake of the certificates usually has a shorter tenor.

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

The limited volume approach is the most common solution. Banks tend to require an offtake for at least 70 % of power and certificates are in place.

Are there any other typical risks?

Curtailment risk can be an issue in certain areas where grid capacity is temporarily constrained.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

PPAs to supply regulated customers are subject to prices set by OSINERGMIN.

For free customers it will depend on the nature of the free customer though usually fixed price subject to revisions to reflect changes in key costs.

What term is typically agreed for the PPAs?

For PPAs which supply regulated customers the term will typically be 10 to 20 years as there is a regulatory limitation to the volume of energy that can be purchased through short-term agreements (i.e. 5 years or less).

Theoretically, free customers should seek long-term agreements as the usual tendency is for prices to increase. However, customers may decide to agree otherwise based on their market knowledge and predictions. 

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

PPAs for free customers may take either form, or other alternatives. As parties negotiate their own terms. PPA´s can contain a take-or-pay form in some cases.

Are there any other typical risks?

Since natural gas is used for 35% of the national generation capacity, some PPA’s terms could consider some limitations or issues related to gas transportation.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

Given the private nature of contracts, it is difficult to generalise on commonly used pricing arrangements across the South African market. However, in our experience prices tend to be fixed (often indexed to inflation).

What term is typically agreed for the PPAs?

In our experience, generally between 10 to 20 years.

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

Generally, take-or-pay.

Are there any other typical risks?

Foreign denominated input costs as many components of the facility are still imported.

Recently, pandemic related risks have been prevalent (particularly whether the impacts of the pandemic constitute force majeure events etc).

Wheeled CPPAs may offer no guarantee of system availability due to the fact that, in certain circumstances, electricity is wheeled through the national grid.

Changes in law, particularly regarding recently promulgated pandemic related legislation (disaster management regulations etc).

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

With regards to pricing agreements, there are several possible options: fixed prices, step prices adjusted over the term, and price indexation (sometimes with caps, floors and collar arrangements). Hybrid forms of these variants are possible. Given the private nature of contracts, it is difficult to generalise on commonly used pricing arrangements across Spanish market. Corporates have however been prepared to offer higher fixed prices which can be attractive to generators. A widely used formula is a discount on the market price.

What term is typically agreed for the PPAs?

At this time the terms of the PPAs range between eight and fifteen years, but some of the most relevant PPAs in 2018/2019 were signed for twenty years.

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

There are different kind of products. For instance, in the physical-offsite PPAs, we find a) PPA “as generated”, in which the offtaker consumes all generation produced by the plant (it is the most competitive product in terms of price, but the most risky); PPA “baseload”, in which the renewable developer is in charge of converting the plant’s gross generation into a base load (it keeps a good balance between price and risk); PPA “as consumed”, in which the renewable developer is responsible for converting the gross generation into a curve that closely follows the customer consumption (only available to companies with a large generation portfolio).

Are there any other typical risks?

Due to the COVID situation, the spot market prices are decreasing and so the gap with the renewable energy generation costs. Certainly the PPAs are long term agreements, and it shouldn’t be affected by temporary scenarios. But the collapse of prices is also being noted in the futures market, that competes with PPAs. This could lead to a decrease in the PPAs prices, that are very sensitives to futures prices.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

The Swedish market caters to all forms of pricing structure. Historically, however, agreements will comprise a combination of fixed and floating prices.

What term is typically agreed for the PPAs?

The typical term of PPAs is from 10 - 15 years, however this does vary significantly depending on the interests of the parties.

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

PPAs have generally been based on the take-or-pay principle. Although, again, we have worked on many baseload and synthetic agreements in the market as well.

Are there any other typical risks?

Businesses that trade internationally or have operations overseas are likely to be exposed to foreign exchange risk arising from volatility in the currency markets. One of the typical CPPA risks is therefore currency exposure, with EU CPPAs being commonly priced in Euros. Concerns about currency fluctuations between sterling and the euro as a result of Brexit are therefore key considerations for parties to UK-EU27 CPPAs.

Last modified 16 Dec 2020

Not applicable.

Last modified 9 Feb 2021

Do prices tend to be floating or fixed?

Fixed.

What term is typically agreed for the PPAs?

Up to 25 years, however 15 year contracts may be more common (and acceptable to the purchaser).

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

Under the net metering models across the region, plants have tended to be sized to prevent substantial over-generation. The reason being that under the net metering schemes, credits against future purchases of power from the national utility tend to be time-limited, making a consistently positive position vis-à-vis the national utility uneconomical. 

However, with the roll-out of battery technology, we expect the scale of rooftop solar to be revisited and the percentage of power taken from the grid by companies with rooftop solar to reduce.

Are there any other typical risks?

There is a lingering regulatory risk in relation to solar leasing and hire-purchase models in the region’s net metering models.  Such models are designed for self-generation as opposed to third party generation. 

This risk allocation has been addressed through a compulsory purchase of the plant.

Last modified 21 Jan 2021

Do prices tend to be floating or fixed?

With regards to pricing agreements, there are several possible options: fixed prices, step prices adjusted over the term, and price indexation. Hybrid forms of these variants are possible. Given the private nature of contracts, it is difficult to generalise on commonly used pricing arrangements across GB market. Corporates have, however, been prepared to offer higher fixed prices which can be attractive to generators. As cPPAs can offer an option to hedge against electricity market prices, a fixed price element is a common feature of a synthetic cPPA.

What term is typically agreed for the PPAs?

The typical term of PPAs is from 10 - 15 years, however, this may vary depending on the interests of the parties.

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

PPAs have generally been based on the take-or-pay principle.

Are there any other typical risks?

Businesses that trade internationally or have operations overseas are likely to be exposed to foreign exchange risk arising from volatility in the currency markets. One of the typical cPPA risks is, therefore, currency exposure, with EU cPPAs being commonly priced in Euros. Concerns about currency fluctuations between sterling and the Euro as a result of Brexit are, therefore, key considerations for parties to UK-EU27 cPPAs. 

Change in law is a common risk, resulting from the legal nature of GoOs. Any legislative change, binding court judgment or changes to network codes which changes either the legal nature of the GoO or more broadly changes cost sources, including changes to the balancing regime or transmission and distribution costs, pose a risk of changing the commercial benefit of the transaction for the parties. The implications of Brexit will need to be carefully considered for change in law provisions.

Last modified 16 Dec 2020

Do prices tend to be floating or fixed?

Fixed prices for traditional PPAs and a contract for differences or a fixed-for-floating swap for Virtual PPAs. 

What term is typically agreed for the PPAs?

7 to 10 years.

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

Limited volume.

Are there any other typical risks?

Corporate buyers typically enjoy some protections against delays in construction in the form of liquidated damages and construction deadlines subject to extension for force majeure.

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