The African Development Bank (AfDB) is financing a $530 million electricity project to develop renewable energy and regional connectivity in Angola. This financing covers the first phase of the Energy Sector Efficiency and Expansion Program (ESEEP).

The AfDB has embarked on the construction of a 343 km, 400 kV central-south transmission line that will link the northern and southern transmission networks of Angola and allow the distribution of clean energy between the two regions.

With this funding, transmission capacity will increase by 2,250 MW and eliminate the need for polluting diesel generators in the southern provinces. The project, once operational in 2023, will avoid the consumption of 46.8 billion liters of diesel per year in the south, thus reducing 80 megatonnes of CO2 emissions. The Angolan government will save more than $130 million a year in diesel subsidies.

According to the AfDB, the first phase of the ESEEP program in Angola will help the government connect the country's transmission networks and address limited operational capacity within the Angolan electricity utility ENDE. About 80% of residential customers in Angola are unmetered, leading to financial losses and reliance on government subsidies. Under ESEEP, 860,000 prepaid meters will be installed and 400,000 new customers will be connected to the network and effectively metered.