The African Development Bank (AfDB) has invested $530 million to enable the construction of a 343 km, 400 kV central-south transmission line in Angola.

The said project will connect both north and south transmission grids in Angola and allow for the distribution of clean energy between the two regions.

In a press release dated Tuesday by the AfDB, the project, once completed will increase transmission capacity by 2,250 MW and eliminate the need for polluting diesel-powered generators in southern provinces.

Also, the project is expected to “avert the consumption of 46.8 billion litres of diesel per year in the south, cutting 80 megatons of CO2 emissions,” allowing the government to save more than $130 million per year in diesel subsidies in 2023.

"The new transmission line will become the backbone for the distribution of power to the southern provinces of Angola and Namibia and will enable further power trading between countries in the region," the statement added.

The finance package consists of $480 million in financing from the Bank, along with $50 million from the Africa Growing Together Fund, a $2 billion facility sponsored by the People’s Bank of China and administered by the African Development Bank.

The statement further indicated that the funds cover the first phase of the Energy Sector Efficiency and Expansion Program (ESEEP) in Angola.

"As part of the ESEEP, 860,000 pre-paid meters will be installed and 400,000 new customers will be connected to the grid and effectively metered."

This initiative will assist the 80 per cent of residential customers in Angola who are not metered, leading to financial losses and reliance on government subsidies.

Meanwhile, Angola has significantly improved its capacity, operational efficiency, and sustainability of the electricity sector.

In the period 2015-2019, Angola’s total installed capacity in renewable energy rose from 1,017 MW to 2,763 MW, mainly through the improved exploitation of the country’s abundant hydropower.

The African Development Bank in the year 2015, approved a $1 billion power sector reform loan for Angola resulting in the creation of an independent regulator and the unbundling of the sector into distribution, transmission and distribution companies.

African Development Bank Group (AfDB) is Africa’s premier development finance institution comprising of three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF).