- ANGOLA CAN DRAW ON A BREATH OF ENERGY RESOURCES, WHICH WILL BE A BOON FOR INDUSTRIAL PRODUCTION IN THE COMING YEARS.
- THE NATION IS GEOGRAPHICALLY WELL POSITIONED TO BENEFIT FROM CLOSE TIES WITH OTHER COUNTRIES IN THE REGION AND FROM REGIONAL NETWORKS IN AFRICA.
1. Angola’s substantial hydrocarbon fuel reserves are gradually diminishing, but are still significant
Angola has a variety of hydrocarbon resources. Among these, oil and gas are the mainstays of Angola’s energy industry. Most importantly, Angola’s oil and gas reserves are more accessible than in other parts of Africa, which further reduces logistics costs and production costs. In the future, Angola’s hydrocarbon energy reserves will decline and there is a possibility that investment in the remaining oil and gas reserves will become less attractive to investors. Nonetheless, Angola is well positioned to replace these hydrocarbon reserves with other equivalent forms of renewable energy, which are abundant in Angola and neighboring regions.
2. Solar energy to contribute massively to the energy mix in Angola
Angola is in an ideal position to benefit from solar energy, as it is located near the equator. Solar radiation is significant, which means Angola has a good chance of building its renewable energy future based on solar energy and its hydrocarbon reserves. Rooftop solar could be particularly attractive for many Angolan households to generate their own electricity.
3. Biomass could also contribute to Angola’s energy policy goals
Biomass is one of Angola’s strengths, as the nation benefits from a large agricultural sector. This agricultural sector needs to be further developed, but has enormous growth potential. Biogas could fuel this growth as it would provide a decentralized energy solution in rural areas that would benefit Angola tremendously. In addition, Angola could benefit from cooperation with Brazil, which is a leading producer of bioethanol. Brazil has significantly increased ethanol production from sugar cane.
This gives Angola the opportunity to learn from one of the world’s leading producers of biofuels, which is also Portuguese-speaking. Cooperation between Brazil and Angola already takes place in many economic sectors. In addition, cooperation with Portuguese-speaking countries within Africa can be expanded. There is an opportunity to strengthen cooperation with Mocambique on energy issues.
Angola has a great opportunity to diversify its energy mix wherever it wants. It can choose between oil and gas, renewable energy sources including solar energy and biomass. In the future, Angola may even be able to benefit from hydropower projects in the Democratic Republic of Congo, which will allow Angola to import electricity to the north of the country. Hydropower is one of the best sources of energy there is, because it is reliable, relatively cheap and can be produced economically. It is also a good energy store and can provide electricity around the clock. Many countries in Asia, such as China, Laos and Myanmar, prefer hydropower over other energy sources because it is an abundant source of energy and is renewable. Cooperation with other Portuguese-speaking countries such as Brazil will consolidate Angola’s position as a strong energy hub in Africa.