Angola and Namibia signed an agreement on Tuesday (14) in Luanda for the construction of a high-voltage transmission line designed to export up to 500 megawatts (MW) of electricity, the Angolan government announced.
The contractual agreements for the Angola-Namibia Electricity Interconnection Project, known as ANNA, were signed between the National Electricity Transmission Grid—an Angolan public company—and NamPower, laying the groundwork for the joint construction and development of the electricity interconnection between the two countries.
Angola’s Minister of Energy and Water, João Baptista Borges, and Namibia’s Minister of Industry, Mines, and Energy, Modestus Tshitumbu Amutse, witnessed the signing of the Joint Development Agreement and the Power Purchase Agreement.
A statement from Angola’s Ministry of Energy and Water stated that, on the Angolan side, the project involves the construction of a 400-kilovolt (kV) interconnector comprising approximately 160 kilometers of transmission lines, the expansion of the Cahama substation in Cunene Province, and complementary infrastructure.
“The initiative aims to enable the export of electricity at a capacity of up to 500 megawatts, strengthening regional energy security, the efficient use of available resources, and creating new opportunities for investment and economic growth,” the statement reads.
ANNA also stipulates that 300 MW of the 500 MW of capacity will be under a take-or-pay arrangement—meaning the buyer is obligated to pay for an agreed-upon minimum amount, even if it is not consumed—with the remainder destined for the regional markets of the Southern African Development Community (SADC).
Namibia, through the state-owned electricity company Nampower, will finance the project, with the investment expected to be recouped through the energy pricing structure negotiated between the parties, using a previously agreed annual adjustment mechanism.
According to the presidential decree, the solution adopted “incorporates an innovative fiscal and financial approach,” which does not increase Angola’s debt while simultaneously ensuring the economic sustainability of the initiative and the predictability of revenues associated with energy exports.
Angola and Namibia share a common border of approximately 1,376 kilometers, spanning southern Angola and northern Namibia.
Source: Lusa
