Angola has made significant progress in expanding renewable energy and transitioning towards a more sustainable electricity system, but continues to face structural and connectivity constraints that limit the potential of its energy sector, according to the African Development Bank (AfDB).
The conclusion is contained in the Development Effectiveness Review Report for Angola 2016–2025, presented on Wednesday, 16 July, in Luanda, during a ceremony organised by the AfDB in partnership with Angola’s Ministry of Planning.
According to the document, electricity access in the country rose from 41.8% of the population in 2016 to 51.1% in 2023, while electricity generation increased from 11 to 19 terawatt-hours (TWh) over the same period.
Investment in large hydroelectric plants drove the share of renewable energy in Angola’s power mix from 52.6% to 76.3%, placing the country, according to the AfDB, among the region’s leading producers of clean electricity.
Despite these advances, the report warns that several constraints persist. “Structural and connectivity limitations continue to restrict the full potential of the sector,” the document states.
Among the principal challenges is the fragmentation of the national electricity grid, which remains divided into three disconnected systems — north, centre, and south. The AfDB notes that this situation “prevents the transfer of surplus generation to underserved regions.”
The report also highlights low electrification rates, estimated at approximately 43% nationally and below 10% in rural areas. The sector is further burdened by “high technical and commercial losses of around 35% and bill collection rates below 80%.”
Tariffs represent another identified obstacle. According to the AfDB, electricity prices remain below production costs, even after the most recent adjustment to 9.9 kwanzas (approximately 1.1 US cents) per kilowatt-hour (kWh), while production costs stand at around 22 kwanzas (2.4 US cents) per kWh.
“Transmission and distribution losses have improved modestly,” the report notes, recording a reduction from 10.6% to 9.6%, although significant disparities persist across different regions of the country.
For the AfDB, these constraints “undermine the financial viability of the sector and restrict the capacity of public utilities to modernise assets, expand service coverage, and reduce electricity outages.”
The bank also announced that it has disbursed approximately US$2.9 billion in Angola over the past ten years. The investments spanned sectors including energy, water, agriculture, sanitation, governance, youth, entrepreneurship, and innovation.
At the report’s presentation, the AfDB’s resident representative in Angola, Pietro Toigo, stated that the approximately US$2.9 billion invested in the country represented “exponential growth over the past decade.”
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/18/mundo/angola/angola-limitacoes-estruturais-continuam-a-travar-potencial-do-sector-energetico-diz-bad/
