Lobito Corridor will leverage energy “export” to neighboring countries

     Economy              
  • Luanda • Saturday, 27 July de 2024 | 19h30
FILDA - 2024:  Ministro da Energia e Águas, João Baptista Borges
FILDA - 2024: Ministro da Energia e Águas, João Baptista Borges
Domingos Cardoso - ANGOP

Benguela - The Angolan government wants to take advantage of the Lobito Corridor as a 'fast lane' to interconnect the national electricity grid with that of Zambia and the Democratic Republic of Congo (DRC), ANGOP has learned.

The possibility was raised in Benguela by the Minister of Energy and Water, João Baptista Borges, when speaking to the press about the sector's priority projects in the 2023-2027 five-year period.

At issue is a strategy by Angola to export the surplus energy from its grid to neighbouring countries, as a way to raise foreign exchange and ensure more financial sustainability of the electricity sector.

With private funding of one billion euros, the well-known Angola, Zambia and DRC Regional Interconnection Project consists of the construction of a line of more than 1,200 kilometres that will connect the Middle Kwanza area to the so-called Copper Belt, in the eastern region of Zambia and the DRC, where there is a great demand for energy.

This future electricity transmission line is expected to supply a surplus of energy of up to 2,000 megawatts to the eastern region of Zambia and the Democratic Republic of Congo, mainly to the mining industry.

Despite currently producing 3,547 megawatts, the Médio Kwanza area, which concentrates the Capanda (520 MW), Laúca (2,067 MW) and Cambambe (960 MW) dams, has an installed capacity of 7,000 MW, but is expected to increase to 9,000 MW by 2027, with the construction of the Caculo Cabaça dam, with a capacity of 2,100 MW.

In addition, the energy interconnection project, which is scheduled to be completed in two years, also includes the construction of the Zenzo-1 (450 MW), Zenzo-2 (120 MW), Tomb of the Hunter (450 MW) and Luíme dams, with a capacity of 330 megawatts.

Therefore, the three countries involved signed on July 4 this year, in Luanda, the Regional Interconnection Project, to share the expected surplus energy, thanks to the Government's large investments along the middle course of the Kwanza River.

It is in this context that Minister João Baptista Borges said that the project to interconnect the national electricity grid with Zambia and the DRC is already being prepared and will be developed by the private sector.

'Our concept of the Lobito Corridor is broader than that of train circulation', he said, considering that the Lobito Corridor has to be 'much more than a route for trade in the region'.

Therefore, he defends the revitalisation of this Lobito-Luau railway corridor, on the border with the DRC, not only for the exchange of products, predominantly the flow of mineral production from neighbouring countries, but also for the export of energy from the national grid and even telecommunications.

'We then want to link the interconnection with Zambia and the DRC from our national electricity grid to the Lobito Corridor,' he said.

Access to foreign exchange

He believes that the interconnection of the national electricity system with that of neighbouring countries will be a solution for Angola to be able to seek foreign exchange resources.

João Baptista Borges hints at the importance of foreign exchange resources through the 'commercial export' of energy, to ensure the execution of several other projects in the electricity sector and also to meet other needs of the country.

Private sector

And the holder of the Energy and Water portfolio makes it clear that energy interconnection projects will not be developed with public resources, on the contrary, they will be supported only by the private sector.

To this end, he said that Angola and the other countries in the region will only authorize these projects to be carried out, through a long-term concession contract.

'The rest is the private sector that puts in financial resources and carries out the works,' insisted the minister, reiterating that the public authorities are responsible for electrifying the national territory.

Not least because, he acknowledged, the Government is aware of the great work it still has to do to bring electricity to different regions of the country.

In addition to the eastern region, Angola also has plans for energy interconnections with Namibia, in the south of the country.

 Energy for all

In 2023, Angola benefited from US$1.4 billion financed by Standard Chartered, aimed at building electricity production systems in rural villages across the country.

The goal is for rural communities to become more self-sufficient and less dependent on the main national electricity grid.

This electrification project is expected to benefit approximately 203,000 households and one million Angolans in 60 communities in the provinces of Moxico, Lunda-Norte, Lunda-Sul, Bié and Malanje.

The national electricity matrix comprises 59.79 percent hydroelectric power, 35.74 percent thermal, 3.81 percent solar and 0.57 percent hybrid.

As part of the interconnection of the national electricity grid, the North and Center regions are already connected, benefiting a total of 10 provinces, with the next step being the connection of the South and East.

In Angola, the electrification rate increased from 36 percent in 2017 to 43 percent in the first quarter of 2023, with the goal of reaching 50 percent in 2027. JH/CRB/DOJ





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