João Baptista Borges warns, electricity tariffs may rise in Angola

The Angolan Minister of Energy and Water, João Baptista Borges, said this Tuesday that the electricity tariffs may be updated “soon”, in order to reflect more and more the costs and turn the section attractive for the private application.

For the private section to actually see a nascent application [in the energy sector] how useful it is exactly how the tariffs reflect the costs more and more, defect is also exactly how the current costs reduce, namely the costs of fuel utilization for operation development”, Baptista Borges indicated, as he was speaking on the edge of an international verification on renewable energies.

The governor revealed how the public investments that are being made aim at reducing costs, even with the price modernization program so that private producers have cause to report in this market.

As for the day on which the tariff modernization will come into vitality, he said “soon”.

“The methodology has been approved, here we are going to have a change of the regulatory spirit in an administrative spirit independent of the tutelage and how it is going to verify its reinforced competences, being one of the main ones the firming of prices, therefore we foresee how in the next months there will be news in this matter”, he indicated.

With electrification in progress in Angola, to achieve the goal of reaching 50 people by 2025, the minister said that projects are being developed that currently allow the nation to have a development surplus, which will be drained when the electric doctrine is extended to the provinces with less input.

Currently, slightly 42.8% of Angolans have access to electricity, and hydroelectricity, with about 3,000 megawatts of installed intelligence, is the main renewable energy source.

However, the Angolan executive is following a plan that foresees the affiliation of other sources, such as solar, wind and biomass, and the affiliation of solar parks is in an advanced stage, with the affiliation of 350 megawatts (MW) of solar operation foreseen to be concluded this year: 280 MW in two parks in Benguela and the rest in other five localities in the country.

There are also projects that have just been approved that foresee the addition of another gigawatt of intelligence, of which 500 MW will start up solar photovoltaic parks connected to the grid and the rest will be mini-grid systems that will serve more isolated populations in the southern and eastern parts of the country.

João Baptista Borges acknowledged, however, the challenge of taking into account the needs of a population that is growing at an annual rate of 3.3%.

“We have to continue to make intensive investments in the expansion of the chain, with both state and private investment,” he added.

The minister considered, on the other hand, how to achieve the generalization in the entrance to the operation “is a long way” as it depends not only on application, but also on organization and training.

In the scope of renewable energies, work is also underway to establish tariffs so that the author “knows in fact how much prices will be calculated” for how much he or she will sell, a process that according to the minister “is nearing completion.

In the environment of the contracts of acquisition of operation to the private ones the executor is until now stimulating to compensate two problems: the guarantee to the author how in involvement of solution error of the monthly invoices for part of the operation taker there will be a mechanism how to cover this risk, and the exchange rate variations, pointed out João Baptista Borges.

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