ProMarks and Trafigura have signed a preliminary agreement with the Angolan government for the development of a power transmission project.
Under the memorandum of understanding (MoU), the companies will conduct a technical and economic viability study of a significant power transmission and supply initiative in the region.
The collaboration aims to establish a Public Private Partnership model for the project venture.
The project involves the construction and operation of a 2GW high-voltage electricity interconnector.
This high-voltage direct current transmission line will transport surplus green electricity from hydroelectric dams in northern Angola to the Democratic Republic of Congo’s Copperbelt province and to Zambia.
The renewable electricity for this initiative will be sourced from Angola’s national electricity transmission network.
The energy would then be sold to customers including global mining companies operating in the Copperbelt and across the Southern African Development Community nations.
ProMarks and Trafigura are preparing to create a joint venture to spearhead the project.
Its responsibilities would encompass the development, financing, construction and operation of the electricity interconnector.
The funding structure for the project will consist of a combination of equity capital and third-party debt.
The planning, securing of approvals and construction phases of the Angola power transmission project will take place within four years of the final investment decision.
ProMarks executive director Elísio Augusto stated: “Angola is using the full potential of its hydro and solar resources to produce energy cleanly and sustainably.
“The interconnector project between the electricity grids of Angola and neighbouring countries could, along with the Caculo Cabaça hydro dam, be the most important project for the electricity sector, attracting substantial new revenues for Angola and facilitating a return on the investment that has been made by the government in energy production.”
