Angola has authorized €201.2 million to strengthen electricity distribution in the provinces of Luanda and Icolo e Bengo.

President João Lourenço approved the funding through a presidential decree published on November 4, according to 360 Mozambique.

The money will finance the first phase, or “Lot A,” of the Electricity Grid Expansion Project. It targets Porto Seco, Funda, the Viana Industrial Hub, Zona Verde and Mundial, with work including new substations and the upgrade, expansion and modernization of transmission infrastructure.

The project is expected to connect more than 125,000 homes and benefit over 500,000 people.

The plan includes three new 80-megavolt-ampere (MVA) substations and a 40 MVA transformer at the Viana industrial zone, adding about 280 MVA of transformation capacity. It also covers 103 km of electrical infrastructure: 55 km of new 60 kV high-voltage overhead lines and 48 km of modernized 30 kV medium-voltage lines.

The World Bank reports that installed generation capacity exceeded peak demand by about 30% in 2022, yet transmission and distribution constraints prevent much of that power from reaching consumers.

Nationally, 55.5% of Angolans had access to electricity in 2024. Rural access remains far lower, with earlier World Bank analysis placing it at 8% in 2021, underscoring the scale of the country’s distribution challenge.