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A Case Study Of Angola’s Electricity Supply Issues Add in library

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Question:

Make a case study of Angola’s electricity supply issues - describe Renewable energy is a viable option for African countries?

 

 

Answer:

Abstract

The renewable energy is gaining attention in Angola due to having problem since the time of civil war. The civil war affect was such that it damaged the infrastructure and energy sector of Angola and till now it has affect on the nation. The energy industry of Angola is facing problem to lack of cost and investment. Therefore, renewable energy is effective for the nation to exploit the resources and improve the economic condition of Angola. On the other hand, the GDP of Angola can be improved along with the development of infrastructure and energy sector. In the particular research study, the researcher has focused on the renewable energy and its effectiveness that can help Angola to overcome the issues of electricity supply. The secondary source of information has been used for study the status of Angola in terms of energy use and supply of energy. The literature review has been mentioned in context to energy in Africa and Angola. Moreover, the recommendation has been provided that can help Angola to improve the energy sector.

Chapter 1

Introduction

The renewable source of energy is important for today’s complex environment and fast depletion of energy. The renewable source of energy is generated from natural sources such as sunlight, wind, geothermal heat, waves and tides. The sustainability can be attained in regards to environment and use of energy. Africa is a developing continent and facing challenges in their energy sector. Therefore, use of renewable energy can be solution to their energy issue and dependence on oil and gas can be decreased (Afribiz.info, 2014). The purpose of the current dissertation is to assess the viability of renewable energy in African countries. The study will be present in reference to Electricity Supply Issues of Angola. The study will be further discussing the research objectives along with various theories and models in literature review. On the other hand, research methodology will be presented and limitation will also be discussed so that research can be present in more presentable form (Afribiz.info, 2014).

Research Aim:

The aim of the research is to analyse the effectiveness of renewable energy in developing the economy of a country. The research will be throwing light on in-depth analysis of reliability of renewable energy (Alexander and Richardson, 2012). The researcher has selected Angola region as the case study so that impact of reusable energy on people, industry or nation can be known.

Research Objectives:

The research objectives can be helpful for the researcher to base the research in appropriate manner (Alexander and Richardson, 2012). Therefore, it can help in presenting the topics in detail manner. The research topics can be segmented so that each topic can be explained on the basis of objectives. Therefore, research objectives are:

  • To investigate the issues affecting the supply of electricity within the country
  • To examine the market entry policies into the renewable energy sector in Angola
  • To investigate what has been done in terms of the use of natural resources for renewable energy in Angola
  • To provide recommendations as to how the authorities in collaboration with energy companies can minimize the issues of power cuts in Angola

Research Questions

The research questions can be supportive in analysing the research topics and solving the issues related to the case study. Therefore, the question has been listed down in relation to case study.

  • What are the issues that are affecting the electricity supply in Angola?
  • What is the market entry policies followed in the renewable energy sector?
  • What are the programs that have been adopted in the employment of natural resources for the development of renewable energy?
  • How collaboration between authorities and energy companies can be effective in decreasing the matter of power cuts?

The above mentioned question can be helpful for evaluating the data and comparing the results with the objectives of research purpose.

Rationale of the Study

The research work has been selected by the researcher for understanding and analysing the effectiveness of using renewable source of energy within Angola. The renewable energy can be useful for the developing countries as it can be difficult in transmitting and distributing energy in rural or remote location, which is developed from fossil fuels. On the other hand, it can be expensive for transferring energy (Angelo, 2011). The concern regarding environment has made the energy supplying authorities to give more consideration towards using renewable energy. The issues of global warming, air pollution, technologies cost, etc are the main reason in adopting the renewable source of energy (ANGOLA: New Oil Power, 2007). If the energy is not used in correct manner, the country might face serious problem and their economy may be affected. Therefore, it can lead to economy downturn and fall in the development of the country (Anon, 2006).

The projects of renewable energy can be helpful for the developing nations as it can be effective in making contribution in alleviating poverty. Consequently, energy can be supplied for developing business and creating employment (Angelo, 2011). On the other hand, indirect input can be made by renewable energy by delivering energy for space heating, cooking, lighting, etc to eradicate poverty. The sustainability can be attained by the utilization of energy that is renewable and it requires low cost of operation in maintaining energy. The effect of carbon dioxide and chemical pollutants can be minimized through renewable energy so that environment can be protected (Chaiamarit and Nuchprayoon, 2013). On the other side, renewable energy can be effective in ensuring economic benefits by increasing the employment of local service and improving the tourism growth. For instance, European Countries such as United Kingdom and Germany has implemented measures to develop renewable energy that helped them to produce many jobs for the people (Violence in Iraq and Nigeria, OPEC cuts output, admits Angola, 2007). The high price associated with the use of fossil fuels can be decreased by renewable energy and the people can have to bear fewer prices for gaining energy (Angola: New Oil Projects, 2008).

On the contrary, the developing countries may find it hard to produce required quantities of electricity which is possible with fossil fuel generators. Moreover, the renewable energy depends on the weather for generating power. Therefore, if weather condition is not favourable then it can affect in generating renewable energy. For instance, hydro generators require rain to pack the dams so that water can be flowed (Yamin, 2004). The developing countries may not comply with the concept of renewable energy as it can be expensive for them. The renewable energy is totally a new technology and requires high capital cost (Bodig, 2012). Therefore, the developing country may not adopt renewable energy (Angola: New Oil Projects, 2008). On the other hand, if renewable energy is adopted then the country may not develop at better rate. Many developed countries uses renewable source of energy that helps them in increasing GDP. As a result, if developing countries do not build renewable energy then it may lack behind in developing better educational system, health care system (Zeller, 2006). Therefore, renewable source of energy can be effective for the future development and for future generation (ANGOP, 2014). The environment sustainability can be gained from the use of energy and the country image can be improved in the world map. In addition, renewable energy can be stored and carbon dioxide from the atmosphere can be taken out by adopting different methods of generating renewable electricity (ANGOLA: New Oil Power, 2007).

According to Ohunakin (2011), investment has been made by the government of Angola for achieving green growth that can help in promoting and increasing economic growth while decreasing emissions of greenhouse gases and pollution, reducing wastage and efficient usage of the natural resources and enhancing biodiversity. The renewable energy is totally a new technology and requires high capital cost. Angola has adopted Renewable Energy Technologies (RET) in order to supply environment friendly technology for the electricity industry in Africa and different parts of Angola. According to Dresch et al. (2014), pressure of population and inadequate development of infrastructure have increased the issue of environment in Angola. It has been found that there is scarcity in the portable water, majorly in the rural areas (Asia, Africa, Middle East, 2009). On the other hand, poor practices in agriculture have led to soil erosion extremely and desertification. Moreover, Weller (2014) mentioned that deforestation has increased in Angola due to export of international tropical timber in the market which is posing the threat to biodiversity. Therefore, Angola’s government is considering the renewable energies at major vehicle in order to attain the sustainable development (Armaroli, Balzani and Serpone, 2013). Consequently, it can help in improving the living conditions of the society both in rural areas and urban areas. The energy authorities in Angola have formed three key activities in context to renewable energy such as formation of National Renewable Energy Strategy, Identification of the advantage for renewable energy and implementation of the Project.  As a result, the country is working effectively towards developing and using wind energy and solar energy (Martinez and Pedemonte, 2014).

As Angola is blessed with rich energy resources therefore it provides great support in promoting the renewable source of energy. The Ministry of Energy and Water (Ministério da Energia e Águas, MINEA) affairs in Angola takes the responsibility for the National Energy Policy and involves them in enhancing renewable energy. On the other hand, government of Angola has invested in the photovoltaic solar energy so that requirements of electricity can be met in rural areas (Assmann, Laumanns and Uh, 2006). Therefore it helps in raising the electrification level. Angola has bunch of opportunities to make an investment in the renewable energy that can be in rehabilitation or expanding the electric infrastructure in Angola. On the other side, energy sector in Angola has been restructured in order to develop the national electricity and raise the utilization of renewable energies (Barros and Antunes, 2014). Nwulu and Agboola, (2010) said, Angola has been endowed with 47 hydrographical basins that can be used for generating electricity and for other purposes.

 

Chapter 2

Literature Review

Introduction:

It is known that there are various problems that are faced by African countries in terms of renewable and non-renewable energy resources (Burgos and Ear, 2012). At present there are various literatures that can be drawn here regarding the energy issues in various African countries. The main aim of the chapter is to provide description of the renewable and non-renewable resources in various parts of Africa and here a special emphasis is given to the case study of Angola (Bustamante-Cedeño and Arora, 2008). Africa is endowed with vast amount of non-renewable and renewable resources of energy. It is estimated that the potential of geothermal power is 14,000 MW and the potential of hydropower is 1,750 TWh in the continent (Bustamante-Cedeño and Arora, 2008). Throughout the years, abundant solar radiation is received in the continent in abundant amount and it is confirmed in the recent studies that there is abundance of wind energy in the inland areas and the coastal areas of Africa. There is abundant availability of the non-renewable energy coal in the Southern Africa. Africa has substantial amount of renewable and new energy sources and most of the energy resources are underexploited (Carneiro, 2007).

It can be said that from the enormous potential of the hydropower only 7% has been harnessed and the hydro potential includes micro, mini and small hydro opportunities. There are limited initiatives that are taken in the country for the development of the energy utilisation (Controls on turbidity sand deposition during gravity-driven extension of a passive margin: examples from Miocene sediments in block 4, Angola, (2002). It is known that the Renewable Energy technologies (RETs) can significantly contribute to the development of energy sector in the African countries. According to Doucette and McCulloch, (2011) RET can provide attractive environmentally sound technology option for the electricity industry of Africa. The proportion of foreign exchange could be significantly offset by using RET as it can reduce the import cost of oil for the generation of electricity in most of the countries (Kammen and Kirubi, 2008). It is also evident that or meeting the decentralised rural energy demand, the renewable energy are modular and well suited. For a capital constrained countries of Africa, the low investment level and the modular nature of most of the renewable energy technologies are most suitable for those countries (Eia.gov, 2014). The locally available resources and the expertise are utilised by most of the renewable energy technologies and thus it is evident that the local people will receive more employment opportunities but there are certain limitations that are faced by RET in the region (ElDesouky, 2014). Those include poor infrastructural facility and poor institutional framework, high initial cost of capital, pricing distortions in the region, lack of skilled manpower, weak dissemination strategies, weak maintenance service and infrastructure, and poor baseline information (Lebassi-Habtezion and Van Buskirk, 2012).

Significance of the Study:

There is scarcity of energy in Africa than in the developed world. The energy consumption in the country is significantly high across the continent but the energy resource is underutilised in the economy (Energy.sourceguides.com, 2014). Since the 1980s, the overall access rate of energy has been constant whereas in most of the developing countries the electrical grid distribution has increased by 20%. The per capita access rates are significantly falling in the Sub-Saharan Africa and according to recent trends; by 2020 there will still be lack of access to over 60% of the Sub-Saharan African people. The average electricity rate in Africa is 24% whereas the rate is 40% for most of the developing world (Ereda, 2014). It can be said that the power is often unreliable and the power loss is significant in the manufacturing sector that affects the performance of the sector. In a year, the power loss is 56 days in the manufacturing sector. In Burundi, the power is out for 144 days a year, it is 63 days in Tanzania and 25 days in Senegal (Mohammed et al., 2013). The power cuts cause greater issues for the industries operating in various countries. Damage to equipments and sales is caused due to the power outage and it also discourages foreign investment in the countries (ESI-Africa.com, 2014). Thus it can be said that the growth of domestic companies has been stunted by the irregularities in the power supply and it also discourages the set up of manufacturing plants by foreign firms in the continent (Africa Oil Trade, 2011 and 2012, 2013).

Even though the electricity supply is unreliable in the continent but still the cost of electrical service is very in Sub-Saharan Africa from the other parts of the world (GmbH, 2014). The rate of protective tariff is $0.13 USD in the country whereas in the rest of the developing world, it is only $0.04-$0-08 USD. Thus it can be said that Africa is facing one of the greatest challenges at the moment in terms of creating sustainable development in the continent. There is a lack of sufficient transport system in Africa (Nwulu and Agboola, 2010). Graetz, (2011) says that the new developments in the manufacturing and the industrial sector have led to significant population growth. There has been increased urbanisation and the energy consumption has also increased significantly Thus one of the challenges that is faced by African countries include the maintenance and provision of widespread access to energy for the population in order to meet the improved and growing standards of living in the continent (Africa Oil Trade, 2011 and 2012, 2013). It is estimated that by 2025 the environmental problems will double or triple as the population will increase by over a billion people in terms of the present annual growth rate of population of 2.2% (Ohunakin, 2011). But the electricity generation is less than 1% from the renewable resources in Africa and thus it is very important to increase the electricity generation and improve the utilisation of renewable resources so that the access to the affordable energy resources can be increased (Hammond, 2011). It is also important to manage the environmental impacts related with energy, stimulate the economic growth, improving the energy governance and ensuring the security of the supply with the help of diversification (Renewables in Africa, 2009). 

Energy Availability and Utilisation:

1. North Africa:

There is dominance of gas and oil in North Africa. From the available oil reserves in Africa, approximately 50% are obtained by Libya and the program and the regulations worth USD $5 billion is implemented in Libya for the reduction of Carbon emission (Haugen and Musser, 2012). There is also prevalence of resources such as gas and oil in Algeria along with the natural gas. The solar capacity is extremely relevant in North Africa (UNIDO, 2009).

2. South Africa:

Of all the coal reserves of Africa, around 91 percent of all the coal reserves are contained in Southern Africa. Around 70 percent of the Uranium/Nuclear resources are in the South Africa. In the hydro resources in Southern Africa follows the Central Africa (Healey, 2005). The potential of hydroelectricity is found in Nigeria, Sudan, Ethiopia, Cameroon, Zambia, Mozambique and Congo DRC. An international initiative is taken by Mozambique for contributing to sustainable energy (UNIDO, 2009). The Living in the Finite Environmental program by USAID, in accordance with the African Society, 15 protected areas have been secured (van der Linde, 1996). South Africa alone contains 6th largest reserve of coal on the planet and other renewable resources in South Africa include bio-energy, wave energy, hydropower, wind and solar power etc (HENRICHSEN, 2005).

3. East Africa:

The sustainable use of natural resource is promoted in East Africa (Iea.org, 2014). The community-based wildlife management in Uganda and Kenya strengthens the environmental and forestry management practices and it also enhances the coastal zone integration (Iea.org, 2014). Various instrumental energy plans has been organised in Kenya for supporting the economic growth and development (Iracleous and Alexandridis, 2005).

According to Cape et al (2008), cited by (Jafari R. Kideghesho et al, 2013), Conservation of biodiversity is one of the main goals in Tanzania and the local actions of Mkuranga, Bagamoyo, and Pangani are supported by the USAID for the promotion of sustainable marine and coastal resource management through coastal tourism, marine culture, and small-scale Enterprise development. Given the arid climate, there is an essential push for the geothermal power in the region.

4. Western Africa:

Between 1991 and 2000, there has been 500% increase in the electricity access in Ghana but there has been a fall in the per capital consumption during the same period (Stewart, Ian J, 1997), that affected the usage of electricity by making is unaffordable (Iracleous and Alexandridis, 2005). An energy action plan was established by Ghana for taking initiatives for the sustainable energy (van der Linde, 1996). It is evident that Nigeria is one of the electronic products dumping ground. There are several toxic substances and metals that are dumped in the ground (Renewables in Africa, 2009). There are some coal reserves in West Africa, especially in Nigeria and some nuclear resources are also available in West Africa (Jakab, 2010). There are several initiatives that are taken in Guinea for the environmental protection and it is expected that the progressive steps will create exchange trade opportunities and improvement in the agricultural production technologies (Kaltschmitt, 2013).

5. Central Africa:

There is abundance of hydro-electric resources in Central Africa due to the presence of various rivers in the region (Langwith, 2009). It is estimated that 4 million tons of carbon emission could be saved annually if the South African coal power can be replaced by the hydroelectric power. In Congo low voltage power lines has been created by utilising the hydro power in the region (Le Billon, 2005). In this context around USD $32 million has been spent and it has helped in achieving sustainable electricity availability to 140,000 people in the region (Lehner and Weißbach, 2009). The protection of forest resources is one of the strong focuses of Central Africa and around $ 48 million has been contributed by USAID through partnership for developing Central African Regional Programme for the improvement of the governance of forests (Ohunakin, 2011). The loss of biodiversity can be reduced along with the rate of forest degradation for the management of the protected area (Lehner and Weißbach, 2009).

6. Renewable Energy for poverty reduction, Energy Access:

One of the major issues that are faced by the African countries is in terms of the reduction of poverty and the development of the various countries (South Africa introduces feed-in tariff for renewable energies, 2009). According to Macauhub English, (2014), in the absence of adequate energy supply, the social and economic development cannot be achieved by Africa. Thus it is very important that modern energy service is accesses in the continent for the essential service development and increase in the productivity. The reliable energy facilities cannot improve the social inequality and these are necessary for improving the economic growth in the regions.

7. Renewable Energy Resources and Application: Criticality and Currency

There are basically two types of energy system that contributes to energy needs of Africa.

8. Large-scale Renewable Energy System:

The large-scale use of renewable energy sources are applied specifically in wind, solar, geo-thermal, modern biomass and in hydropower (Midthun and Hiti, 2012). Among the hydro resources of the continent only 5% of the hydro power potential has been exploited (Spellman and Bieber, 2011). It is estimated that total hydro power potential for Africa is equivalent to the consumed electricity in United Kingdom, Italy, Germany, and France put together (Manahan, 2011). There is greater potential for the hydro power generation in the Inga River and other countries having hydro power potential includes Zambia, Nigeria, Mozambique, Madagascar, Gabon, Ethiopia, Egypt, Cameroon, and Angola.

The biomass energy is also used in large-scale for solid fuel production, biogas production, heat co-generation, gasification, liquid fuels production, and for the process of heat (Nagayama, 2009). In the continent various agro-based industries like sugar, rice mills, palm produce, wood-based industries and paper and pulp use their waste products for the power and heat generation (Morales, 2014). Thus it can be said that there is a good potential for the generation of power in these countries (Morales, 2014).

In many parts of Africa, the geothermal energy is used in abundant amount and it has the potential for the generation of 14,000 MW power (Novoa and Jin, 2011). The wind energy is used globally in large-scale for the electricity production and over the past decade the new installations have increased in Africa for the use of wind energy for electricity generation. However according to Novoa at el (2011) it is evident that Africa still lacks the precise information about hydropower and that constrains the wind energy projects. In the countries such as Ethiopia, South Africa, Tunisia, Egypt and Morocco most of the energy projects have taken place.

According to Solarin and Shaabaz (2013), serious problem is faced in urban areas in terms of solid and liquid waste disposal as it can be converted to energy. The liquid waste handling and treatment system existing in the municipality can be renovated for generating electricity for powering the treatment plants. Thus Africa faces major challenge in terms of urban waste management (Saunders and Chapman, 2004).

There is very limited amount of large scale solar energy projects due to the cost constrained. The feasibility studies can be established in details for assessing the potential of the solar power generation (Saunders and Chapman, 2004). At present the solar thermal power energy is implemented in South Africa only and various plans are implemented in other countries for the generation of power.

9. Small-Scale Renewable Energy Systems:

The small-scale renewable energy system has been increased in Africa for increasing the energy access in the continent. There are basically two types of small-scale energy systems and they are wind power and photovoltaics. The solar PV system is highly documented in South Africa and Kenya. It is evident that the solar energy system has high upfront cost (Strbac, 2007).

The small hydropower system supplies energy to remote communities and it can help in the development to those regions. The capital cost is also lower for the small-scale hydropower system than the large-scale system. There is a large potential in most of the African countries for the small hydro system. At present these hydropower systems are exploited and special emphasis is given on the rural communities. In a number of African countries the micro hydro power system has been introduced (Renewables in Africa, 2009).

Due to the high capital cost the biogas digester dissemination has not been successful for the household application. This has been unsuccessful due to negative public perception, high labour cost and insufficient feedstock and water. Pilot projects have been implemented in Senegal, Rwanda, Ethiopia, Mali, Faso, Burkina, Niger, Kenya, and Ghana.  The Apollonia project has been installed in Ghana for supplying the electricity in the country (Truc et al., 2012). The biogas is also produced from cow dung and the biogas Africa Project has also helped in utilising the resources in the country (Renewables in Africa, 2009). The majority of the Sub-Saharan households rely on the wood fuel for the purpose of heating and cooking. In the rural areas, the main source of fuel is wood fuel and in poorer urban households charcoal is commonly used as a main source of fuel (Trojan Battery expands global presence, opens Africa office, 2014). However the households have to use charcoal due to shortage of alternative energy in terms of brownouts and electricity blackouts. There has been improved use of biomass cook stoves all over Africa (Renewables in Africa, 2009).

10. Electricity in Angola:

The electricity infrastructure of Angola was damaged during the civil war of the nation and afterwards it received financial assistance from China and made improvements in the power sector. But according to Reuters (2014), it is notable that the country still faces problems in terms of electricity generation and supply in the area. The people have to rely on biomass and waste for their needs of household energy use. The electricity sector of Angola is dominated by the state company Empresa Nacional de Electricidade. There are some other private companies as well that provide energy in the country. The country is planning on commercialising the natural gas resource of the country and it is expected that the resource will be very important in the coming years. The Government has also discussed with the international atomic energy about developing nuclear power programs in the region (Okafor, 2009).

11. Energy Resources in Angola:

The energy in Angola basically describes the electricity and energy production, consumption and the export from Angola. In the Energy Policy of Angola, more detailed policies for Angola have been described. In Angola, the hydroelectric power is the primary driving force of energy (OIL AND GAS: Angola, 2009). In 2009, the primary energy use in Angola was 7 TWh per million persons in 2009. In Angola people suffer from blackouts daily and in order to improve the situation, the government announced $17 billion US dollars planned in the investment of energy in the area (OIL: Angola, 2008). It is expected that the plan will alleviate the paucity of the available energy in the region. The energy resource in Angola has increased at a lower rate in every year. In 2007 the energy resource production was 1,104 Twh. In 2008 it was 1,231 Twh, in 2009 it was 1,174. The CO2 emission has also increased significantly. In 2008 it was 12.92 Mt and it 2012 it was 15.72 Mt (OIL/GAS: Angola, 2009).

12. Hydroelectricity:

There is extensive hydroelectric power resource in Angola and it is stated that the power resource exceeds the present needs. The Cuanza River and Capanda Dam provide cheap power to the industries and two dams on the Catumbela River produce power for the Benguela and Lobito areas (Reuters, 2014). The Matala Dam that is situated 180 km of the Lubango also produce the power for the area and near the Namibian Border the Ruacana falls Dam is situated and it was completed in 1970s and the power station of the dam is in Namibia. In 2003, a hydroelectric station on the Cuanza River at Kapanda was started. In 2002 only three dams were operational in the country among the six available dams. $200 US million dollars were spent for the repair of the dams in the location as the dams were damaged extensively due to civil war. In 2002, 1.728 TW h electricity was generated in the country and among that 65.5% came from hydropower and 34.5% came from fossil fuel. In the same year a total of 1.607 Tw.h was the electricity consumption in the country and total capacity was 700 MW, (OIL/GAS: Angola, 2009).

13. Crude oil:

Angola ranks second in the Sub-Saharan Africa for the production of crude oil. Since 1973, crude oil has been the chief export of Angola and it is also the major source of revenue for the government (OIL: Angola, 2013). In 1994, the revenue from crude oil was $2.9 billion and it accounted for 95% of the government revenue (OIL: Angola, 2014). The oil reserves have been increased to 8.8 billion barrels in 2004 and the oil reserves are along the Atlantic coast and mostly in the northern border area between Soyo and Quinzau and in the off shore Cabinda region. Several oil companies were engaged in production in 1999 and one of the large subsidiaries was Chevron of the Cabinda Gulf oil company.

14. Natural Gas

The total gross natural gas production in the region was 8.4 km3 in 2002. The estimated reserve of natural gas in was 45 km3. The domestic demand for refined petroleum  has increased significantly in the country and various projects has been undertaken here for using natural gas resources in the country. Chevron Texaco and Sonangol joined forces in a $2 billion project in 2002 for liquefied natural gas project in the offshore fields of Angola. In 2002 Angola fined $2 million to Chevron Texaco for the cause of environmental damage.

 

Chapter 3

Research Methodology

The present research is based on secondary data. The secondary data is collected from the published journals and papers published by the Government related to the issue. The journal articles have been used to gather information regarding the need of renewable sources of energy by Angola. The electricity issues in Angola have been analyzed using secondary data. The secondary data will provide authenticity to the present research. The data can do a systematic review of the topic. The secondary data will be gathered from the research publications and the various reports in this context. Research using secondary data will be beneficial for the analyzing the research topic in an in depth way.

In the present research, the researcher has used the deductive approach. Amongst the two types of research approach, the researcher has used the deductive approach. The deductive approach will provide a pattern solution to the research problem. The philosophy used by the researcher in the present study is interpretevism. Since the research is based on addressing the social aspect of the country. Thus the theory of interpretivism has been used. It will provide a deeper analysis of the topic. It will provide a solution to the aforesaid problem and determine whether the use of renewable source of energy is a viable option for Angola. The researcher will use the secondary data for qualitative analysis (Research Methodology - An introduction, 2014). In depth analysis of the research can be done by conducting structured analysis of the journals that contains data of the decisions of the governing bodies that are responsible for taking decisions related to the oil industry (Kothari, 2004) ; (Gupta, 2003).

Research Approach (Deductive and Inductive)

According to Bodig (2012) to continue any kind of research, it is very much necessary to select a proper research approach. The selection of the research approach is very important because the entire backbone of the practical research is standing upon the research approach. Martinez and Pedemonte (2014) stated that the selection of best-fit research approach assists the researcher to approach towards the intended goal.

According to the deductive research approach is concerned with the logical reasoning of the research phenomena. According to Bodig (2012), the deductive research approach widely followed by the researchers because it helps the researcher to attain the research goal through providing the logical reasoning of the multiple adjacent factors related to the research. The other reason for the selection of the deductive approach in the research is that it helps the researcher to start from the detail and helps to reach the specific intended outcome. The main feature of the deductive approach is that it reduces the risk of failure as it starts the investigation form very detail and through the logical explanation, it reaches to the intended outcome (Jahn, 2010). The other reason why this research is popular that if there researcher found any kind of errors in the hypothesis or any explanation it does not takes the researcher to start from the initial point. According to Dresch et al. (2014) the chances of error in this approach is very low as it approaches through logical steps (Vogel et al., 2011). 

The inductive approach is very much based on the observation (Ary et al., 2014). According to Weller (2014) the main feature of the inductive approach is that it tries to reach the intended outcome through the development of the patterns on the research objective (Barbieri et al., 2010). However, Martinez and Pedemonte (2014) criticized this research approach through saying that the due to the bottom up approach if the researcher found any of the hypothesis or the pattern is wrong then the researcher needs to start the entire research approach from the very beginning (Kumar, 2005).

However to continue this research the researcher will follow the deductive research approach. The main reason for this is that the nature of the topic indicates that the matter is very wide but the intended decision is whether the renewable energy will be a viable option for Angola or not. To identify the viability it is very important to consider all the possible detailed aspect of the energy sector of the country. Therefore, to continue this research the researcher will follow the deductive research approach not the inductive research approach (Hinkel, 2011). The main reason for not following the deductive research approach is that the patterned solution provided by this research approach does not fits properly when the research is very much related with the social and economical aspect of the country and the viability is the main criteria for decision making (Weller ,2014); (Flick, 2014).

Research Philosophy (Positivism and Interpretivism)

The research philosophy helps to acquire the possible knowledge about the research topic. According to Dresch et al. (2014) to continue any kind of research it is very much necessary to acquire the relevant knowledge otherwise the researcher will fail to meet the intended outcome (Hammersley, 1993).

According to Bodig (2012), the most widely used research philosophies are the positivism and the Interpretivism. The positivism is the most scientifically structured research philosophy. On the other hand, the interpretivism firstly collects the relevant data from the multiple sources and then it develops the ideal framework based on the collected data (Crossan, 2003; p-46-55). According to Weller (2014) interpretivism is the best-fit research philosophy when the research topic is very much connected with the human relations and the social aspects. Whereas, the positivism is very much fit when the research phenomena is very much related with the scientific or patterned objective. According to Weller (2014), positivism philosophy helps the researcher to develop its understanding about the research topic through the repetitive observations.

To continue this particular research the researcher will follow the Interpretivism research philosophy. The main reason for selecting interpretivism as the research philosophy is that the research subject is very much related with the social aspect of the country (Webb, 1989;p-403-410). The main theme of the research is that whether the renewable energy will be viable for the African countries or not. To understand the viability of the intended project it is very much required to understand the socio-economical orientations of the African countries. Moreover, it is very much necessary to analyze the present energy infrastructure of the country (Angola) to identify the capability of the energy sector to adopt the renewable energy production and distribution within their respective regions. Therefore, after considering all these areas the researcher has decided that the research will be carried through the interpretivism research philosophy.

Quantitative Research and Qualitative Research

The in-depth analysis of the research can be done by the quantitative research. It provides deeper understanding of the research topic. Thus in case of qualitative research smaller samples belonging to a wider group is used for conducting the research. Quantitative analysis is done to measure the effectiveness of the use renewable energy as alternative source. The research has been conducted by the use quantitative methods. The quantitative analysis has been gathered from the secondary data. The trend of the use of non renewable sources of energy in the various African countries has been studied in the research. The quantitative analysis has been done by the data obtained from the various journals and news papers. The secondary data has been analysed.  The analysis of the data has been reflected in the research (Smith, 1982).

Quantitative analysis has been done by researching the journals published by the governing bodies that make the policies that affect the energy industry. Quantitative research may be considered as a type of scientific research. (Davidson, 2001; p-11-20). The evidence regarding the topic is obtained from the various researches from journals, published articles etc. The research problem can be understood in a better way. This will provide a better understanding of the research issue. The exact information about the various policies of the Government can be obtained from the papers that contain data of the policy makers. This will help in depth analysis of the topic. The intangible factors affecting the research can be obtained from the quantitative analysis. It will provide a detail perspective of the entire research (Quantitative Research Methods: A Data Collector’s Field Guide, 2014; p-1-12); (Creswell, 2003).

Research Strategy

Justification of the research

The research has been conducted in order to provide sustainable option to the African countries for using energy. The problem related to energy can be mitigated by the use of alternative sources of energy. The viability of the use of the renewable energy sources by the African countries has been analysed in the present research.

Ethical issues

The ethical issues must be considered in order to conduct the research in a systematic way. The reliability of the research is necessary for conducting the research in an ethical way. The ethical issue must be considered to ascertain that genuine data has been collected for the purpose of the research. The data has been collected for the purpose of academic use. The information must be kept in a confidential manner. This will maintain the authenticity of the information.  The data collected from the quantitative analysis has to be kept in a confidential manner. This will maintain the trustworthiness of the research. The referencing style of the research must be appropriate in order to make the information provided in the research reliable to the readers of the paper.

Limitations of the research

The time allotted for conducting the research has been limited. The research could have been conducted in a detail way if the time allotment for the research was more. The information could have been gathered from variety of sources if the time allotted for the research was sufficient. Lack of time is the major issue of the present research.

The research is based on secondary data. Any difficulties of obtaining relevant information can alter the results of the research. This is a limitation of the entire research. Thus any kind of biasness in information gathered can affect the results of the research.

Summary

The present research is backed by secondary data analysis. Quantitative analysis has been done in the research. However to continue this research the researcher will follow the deductive research approach. The main reason for this is that the nature of the topic indicates that the matter is very wide but the intended decision is whether the renewable energy will be a viable option for Africa or not.  To continue this particular research the researcher will follow the Interpretivism research philosophy. The main reason for selecting interpretivism as the research philosophy is that the research subject is very much related with the social aspect of the country.

 

Chapter 4

Results/Analysis/Discussion

Introduction

In this particular chapter, the researcher has focused on understanding the effectiveness of renewable in reference to Angola. With the support of analysis technique, the researcher can be able to present the result of the study in effective manner and analysis of information can be done in acceptable manner too. On the other hand, through information, the researcher can enhance the quality of the study and present the result in much efficient way. Reuben (2012) stated that, the data result and data analysis can help the researcher in employing the theoretical knowledge in the practical field. The secondary data will be used for knowing the renewable energy structure in Angola and its impact over Angola. Therefore, it can be effective in evaluating the data in much more useful and clear way that can be understood by the readers. The researcher will be employing the secondary source that may be available on internet, journals, websites, etc. Thus, the researcher can do analysis and discuss the importance of developing renewable energy.

Electricity Supply in Angola

Area Type

Population

Houses

Houses Electrified

Houses not electrified

% electrified

% not electrified

2001

 

 

 

 

 

 

Urban

23723327

6503427

5023186

1480241

77.20

22.80

Rural

20832416

4267548

2095229

2172319

49.10

50.90

2000

 

 

 

 

 

 

Urban

23357452

6503427

4828103

1675324

74.24

25.76

Rural

19967564

4267548

1952494

2315054

45.74

54.25

1999

 

 

 

 

 

 

Urban

23045062

5745180

4585185

1159995

79.81

20.19

Rural

20009245

3873990

1793193

2080797

46.29

53.71


Rural and Urban Electrification Information of Angola

It can be observed from the above table, rural area mostly suffered due to non-availability of electricity in comparison to urban area. As a result, the living conditions of rural people were much depriving. On the other hand, growth of development of rural area was very slow and was mostly affected by the civil war. Apart from that, urban area was able to receive electricity but was not fully electrified (Eia.gov, 2015). Therefore, the economy of Angola was worsened and many businesses suffered losses due to electrical outage.

Costs of power production

Countries

Costs of power production (US cents per KWh)

Mali

39

Congo

20

Cameroon

17

Rwanda

16.8

Niger

15.9

Angola

15.7

Madagascar

15

Kenya

19.79

Tanzania

19.72

Botswana

19.72

Chad

19.56

Ghana

13


Costs of power production

It can be analyzed from the table derived from World Bank (2010a) that costs of power generation are relatively high in Angola in comparison to its neighbor countries. Therefore, Angola was not able to provide electricity to large areas. As a result, GDP of the nation was affected and people had to live without electricity. Thus, it can be considered that costs were one of the factors that hampered the nation in the path of power generation (Elibrary.worldbank.org, 2015).

Electricity Losses

Nations

Electricity Losses

Malawi

17%

Eritrea

17%

Kenya

19%

Ethiopia

19%

Angola

28%

Sudan

32%

Uganda

40%


Electricity Losses 2007

It can be discussed that Angola really huge electricity losses in comparison to other African countries. The loss of electricity has serious affect on the infrastructure development, employment, living standard, etc. Due to loss of electricity, the production of industry went slow and due to that supply of goods and services was affected (Elibrary.worldbank.org, 2015). 

Cooking Fuels

Urban Population (%)

Rural Population (%)

Electricity

11

2

Gas

11

1

Kerosene

20

2

Coal

2

-

Charcoal

24

-

Wood

30

87

Dung

-

1

Other

2

1

Population Share relying on different cooking fuels in Angola, 2006

Electricity infrastructure:

As per the report of UN Development Programme and WHO, 2009, it can be analyzed that consumption of electricity in Angola is very less both in urban and rural areas. Mostly, rural population is being suffered and due to that they use wood for their various purposes such as cooking which is affecting the natural resources. Therefore, the growth of rural population was slow and they were deprived from basic infrastructure which shows they are under below poverty line. 

As per the report of IEA Open Bulletin, availability of electricity is less than 20% to the citizens of Angola and also electricity is also not that reliable. Therefore, Angola faces difficulty in supplying dependable supplies to the people and moreover there is less rural electrification. Apart from that it also mentioned that, in Angola, the level of solar irradiation is high which achieve 5kWh/m2/day right through the year. Therefore, it is said that country has huge potential in using renewable solar energy. On the other hand, there are number of rivers in Angola that helps the nations in hydropower installations. Further, in the report it was mentioned that in 2002, the government of Angola joined hands with two electricity companies in order to develop electricity sector. Therefore, investigation was done for engaging various forms of renewable energy for the purpose of rural electrification. Thus, micro and mini hydro, solar, hybrid system, biomass was included for developing renewable energy (Iea.org, 2015).

Apart from that, the report of EIA electricity infrastructure of Angola was substantially dented at the time of civil war that is 1975 to 2002. Therefore, after the civil war, the financial assistance was provided by China to Angola which helped in improving the electricity capacity and power sector. In the current period, the nation does not hold national electricity grid. Moreover, the nation rests on the three independent systems such as Northern, Central and Southern system that supplies electricity to different locations of Angola. The Northern system is linked with Kwanza river basin, the central and southern systems are connected with Catumbela and Cunene river basins. Therefore, it helped in generating renewable electricity energy and providing electricity to people. On the other hand, it also helped Angola in installing electricity capacity to almost 1700 megawatts out of which 60% was installed from hydroelectric facilities. Further, the estimate of World Bank shows that around 40% of people of Angola are able to access electricity and around 8 million people are not able to access electricity. Therefore, government of Angola declared that $16 billion will be invested by 2016 so that transmission and distribution network of electricity can be improved (Iea.org, 2015).

The move towards renewable energy helped the nation in generating around 5.5 million kilowatt-hours of power from the sources of hydro and fossil fuel. Therefore, it helped in increasing the access of electricity to some locations such as Lubango, Damba, Muginga, etc. Moreover, it helped in improving the infrastructure of the nation and provided better facilities to the people of both rural and urban area.

Status of Angola’s Energy Sector

Country

Biomass % of Total Energy

Tanzania

98

Uganda

96

Madagascar

90

Sudan

85

Malawi

82

Ethiopia

81

Eritrea

80

Kenya

68

Angola

66

Zimbabwe

65

Mozambique

62

Namibia

60

South Africa

50

Botswana

30


It can be observed from the above table which is presented by Africa Energy Sector that sub Saharan Africa mostly rest on biomass whereas, north Africa depends on oil and gas and south Africa relies on coal in order to develop the electricity. Therefore, it can also be present that, sub-Saharan Africa consumes less modern energy. Therefore, today Angola focuses more on renewable energy so that economy of the nation can be improved and electricity can be provided in good quantity and people can access the electricity and meet their specific needs. As a result, the GDP per capita of Angola has improved tremendously in 2010 as per the report of IRENA (Irena.org, 2015).

Nations

GDP PER CAPITA ( USD 2010)

GDP PER CAPITA ( USD 2003)

Angola

4443

1871

Middle Africa

1308

783

Africa

1594

905

World

9197

4693

 

Therefore, it can be seen that economic performance of Angola has improved over the years. On the other hand, the nation is able to improve their productivity due to development of electricity infrastructure which helped in the growth of different sectors such as industry, agriculture, etc. Moreover, the standard of living of people has improved. The people are able to do their work now with ease (Iaea.org, 2015).

Nations

KWh per capita (2008)

KWh per capita (2010)

Angola

195

287

Middle Africa

140

182

Africa

579

775

World

2777

4896


Electricity use per capita
 

Therefore, it can be found that, use of electricity per capita has increased from 2008 to 2010. The citizens of Angola are able to consume the electricity which they were not able to access previously or during civil wars. Thus, the people are able to carry on with their business activities in productive manner. On the other hand, the children are able to gain education. Moreover, the productions of the nation have increased that helps in providing goods and services to people on time. Therefore, it can be said that renewable sources of energy has helped Angola to generate electricity and solve many electricity supply issue of many rural areas. Further report of IRENA shows a tremendous growth in primary energy supply due to engagement of renewable energy.

Energy Supply

2000

2009

Biomass

75%

60%

Oil and oil products

18%

33%

Natural Gas

6%

5%

Hydro

1%

2%


Primary Energy Supply 2000-2009

On the other hand, as per the result of Energy National Profile of 2009, the total primary energy supply that was developed was around 498.1 PJ out of which 310.8 PJ that is 62.4% falls under renewable energy and the access rate of electricity was 30%. Apart from that, 4172 GWh was electricity generation out of which 76.1% was renewable and in case of electrical capacity it was total 1155 MW out of that 43.1% was renewable. Therefore, it can be found out that renewable energy has made large contribution towards the development of electricity infrastructure. Therefore, it helped in improving the gross domestic product of Angola and providing better services. Apart from that, according to IRENA’s report, the government has laid down various laws and policies in order to promote the renewable energy so that condition of Angola can be improved (Irena.org, 2015).

Policies:

Year

Policies

1996

General Electricity Law

2002

Establishment of Institute for Electricity Regulation

2009

The IRENA Statute

2009

Establishment of Renewable Energy Office

2009

Programmes for small hydro and solar PV

2010

Biofuels Act


Through, different policies, Angola’s government was failure in their approach but gradually understanding the importance of renewable energy, the government focused on building new policies and it helped in setting up hydro electricity plant and other plant so that every people or region is blessed with electricity. Therefore, Angola uses different renewable energy resources to generate electricity and overcome the problem of electricity supply (Kpmg.com, 2015).

Energy Resources

Rating

Wind

Medium

Solar

High

Hydro

High

Biomass

Medium

Geothermal

Almost negligible

Ocean

Medium

Usage of Renewable Energy Resources

It can be understood from the above table that Angola uses more solar energy and hydro energy for the production of electricity. The solar energy is used to approx 43% whereas hydro energy is used to 31% so that goal of providing electricity to people can be achieved. The isolated system of photovoltaic energy has been employed in Angola in order to improve or provide benefits to schools, administrative buildings, medical centers, etc. Therefore, its capacity is between 3 kW and 5 kW. On the other hand, rural electrification programme has been undertaken with solar photovoltaic energy. Therefore, almost 21 infrastructure has been electrified which includes 7 schools, 6 administrative buildings and 8 medical centers.

The report of UNEPFI shows that electricity generation has increased in Angola since the growth of renewable energy (Unepfi.org, 2015).

Year

Non-hydro renewable (billion kWh)

Fossil Fuel (billion kWh)

Hydroelectric (billion kWh)

1998

-

72

45

1999

-

80

56

2000

-

82

58

2001

-

91

60

2002

-

100

62

2003

101

101

69

2004

105

104

71

2005

115

113

74

2006

121

120

73

2007

124

122

76

2008

126

124

79

Electricity generation by source

It can be analyzed from the above table that, significant growth has been in hydro-based electricity. Therefore, it is cost effective for the nation and generates power that is supplied to far flung areas of Angola. It provides benefit for the nation to improve or increase their economic growth rate and improve living standard of people.

Nation

Generation of electricity (kwh)

Kenya

113

Swaziland

144

Angola

155

Cameron

217

Ghana

246

Zimbabwe

345

Mozambique

575

Gabon

651

Namibia

724

Zambia

755

Average electricity generation from renewable sources per capita and year

Therefore, it can be analysed that Angola is doing well in terms of generating electricity. On the other hand, it can also be viewed that Angola has to go long way in comparison to other sub-Saharan African nations. Angola is able to utilize the renewable energy to maximum but due to lack of technology, the nation is not able to perform against other nation. Although, nation has improved their performance on personal level and benefit has been provided to people, companies, factories, etc. Therefore, in recent time, the economy of Angola has been growing fast in Africa.

According to the estimate of Empresa Nacional de Electricidade (ENE), Angola has made substantial investments in the sector of renewable power in order to reorganize and restore the infrastructure damaged at the time of civil war. Therefore, it resulted in the growth of generation capacity which was 830 MW in 2002 to 1200 MV in 2008. On the other hand, the about 80% of installed power generation capacity is operational which helps in increasing electricity level. Moreover, up to 2008, Angola is successful in producing about 4133 GWh of power which is more than the production made in 1999 that is 1295 GWh. Therefore, there is great potential that Angola will further increase the electricity production in the near future. The renewable source has been efficiently used by Angola to set up electricity plant in the nation. Till today Angola has almost 75 power plants (Unepfi.org, 2015).

Fuel Type

Number of power plants

Fuel Oil

1

Natural Gas

2

Diesel Oil

3

Hydro

8


It can be analyzed that Angola is more focused on hydro energy to generate electricity. Therefore, Angola is able to reduce a cost burden that they had earlier while generating electricity from fuel oil. Hence, it is clear that Angola has more plans to focus on hydro so that sustainable energy can be gained and wastage of energy can be reduced and people can be made more responsible towards the use of electricity.

 

Units

Angola

Middle Income

Low Income, Non-fragile

Low Income, fragile

Resource Rich

Firms with own generator

% of firms

68

18

41

33

63

Firms that find power a lack for business

% of firms

46

31

52

67

56

Access to electricity, national

% of population

30

50

33

15

46

Installed generation capacity per capita

MW each million people

70

799

20

46

43

Outages per year

Days

36

5.6

41

11.1

15

Outages, value lost, annually

Sales %

13

2

6

5

7

Collection rate, electricity

Billing %

42

91

92

 

70

Cost recovery ratio

%

15

85

89

85

97

Revenue each unit

US cents each KWh

2.5

13

14

3

13

System losses

Generation %

18-23

20

24

24

52

Total Hidden Costs

Revenue %

375

0

69

544

168

Benchmarking power Infrastructure of Angola (2005)

According to the data from World Bank Specialist 2011, it can be understood that access to electricity was quite low in 2005 but engagement towards renewable energy sources, Angola is able to increase the access to electricity in recent time and more number of people are able to avail the electricity. On the other hand, the companies are able to improve their annual turnover and companies are able to enhance their operation. Apart from that, since the development of renewable energy, Angola has revised their tariff plan on power which is lower in comparison to other developing nations.

 

Angola

Industrial at 50 kWh

4.88

Residential at 100 kWh

4.88

Commercial at 100 kWh

3.72


Effective Power Tariff

The power tariff charged by Angola is less whereas in developing nation, tariff is between 5 to 10’. Angola charge less power price so that poor can gain benefit Therefore, renewable energy helps in decreasing the cost of electricity and production of electricity can be gained in abundance. On the other side, as per the report of KPMG since working towards the use of renewable energy, Angola is able to supply electricity to different departments that is helping in improving the economic condition (Kpmg.com, 2015).

 

2009

2010

2011

2012

2013

2014

2015

Consumption (GWH)

 

 

 

 

 

 

 

Industry

1030

1089

1154

1273

1354

1389

1472

Residential

2213

2350

2504

2672

2861

3103

3528

Commercial and public services

-

-

-

-

-

-

-

Other

223

236

250

265

280

296

317

% change

0.6

6.1

6.3

7.7

6.8

6.5

11

Capacity (MWE)

 

 

 

 

 

 

 

Hydro

518

533

558

571

599

623

685

Combustible fuels

385

435

485

708

788

635

685

Electricity Consumption and Supply

It can be analyzed that through the production of electricity from the use of renewable energy, the residential has gain higher benefit followed by industry and other areas. Therefore, in future Angola can be able to increase the consumption of electricity with least cost and it can help in increasing the production of nation. Therefore, it can be effective for the development of infrastructure such as roads, buildings, technology, educational system, etc. Since the civil war, Angola is able to generate 1160 MW of electricity in 2007 out of which major portion was from hydroelectric and less from diesel-generated. The sustainable energy which is available in abundance and whereas Angola is blessed with many rivers then it can be valuable to use such resources for the production of electricity (MBendi.com, 2015).

Apart from that, the government of Angola has been invested around US $8.4 billion as per the electricity project laid down for 2009-2016 for building electricity plant by focusing on major rivers such as Kwanza River, Catumbela River and Cunene River. On the other hand, 500 MV dam has been constructed at Epupa Falls and at Nyanga 450 MV in Cunene province. Moreover, on Kwanza River, three dams have been settled with a generating capacity of 500 MV. Therefore, Angola is able to improve their GDP real growth rate by 8.4% and GDP per capita by $6500 since 2012.

According to report of Energy Resources, the Ministry of Energy and Waters of Angola has invested $500 million to restructure the infrastructure that was damaged during civil war. Therefore, Angola focused on hydroelectric facilities and built Matala dam which is considered as the main source for providing electricity in southwest Angola. Since, then Angola has registered growth in their infrastructure and electricity generation and where, only 15% of people were able to access the electricity but today around 58% of people are able to use the electricity. Angola rehabilitated their hydropower station so that ENE production capacity can be recovered and electricity can be gained. On the other hand, the government of Angola made an agreement with South Africa and Brazilian Construction Company. The agreement with South Africa was done to build electricity transport line so that electricity can be reached to far flung areas. On the other hand, the agreement with Brazil has been done so that hydroelectric facility can be constructed. Apart from that, Angolan Government developed national grid by linking regional electricity sectors for using renewable energy to maximum and generate electricity (Kpmg.com, 2015).

 

Data Period

Annual Capacity growth (%)

Hydro

1978-2008

36.3

Bio-fuel

2004-2008

25.3

Wind

2000-2009

26.8

Solar PV

2001-2008

42.1

Oil/Diesel

1999-2008

2.9

Geo Thermal

1999-2008

7.5

Gas CT/CC

1999-2008

5.3

Energy Production Capacity Growth in Angola

(Source: Renewable Global Status Report, 2009)

Sub-region

Country

Annual Potential: Current Energy Consumption

Southern Africa

Mozambique

0.018

 

Namibia

1.000

 

South Africa

1.775

Sahelian Africa

Mauritania

5.000

 

Chad

0.458

Indian Ocean Islands

Madagascar

3.833

 

Comoros

0.400

 

Mauritius

0.050

East Africa

Sudan

1.126

 

Tanzania

0.476

 

Kenya

0.314

 

Ethiopia

0.030

Coastal West Africa

Cape Verde

0.857

Central Africa

Angola

0.670

 

Congo

0.444

 

Congo, Dem Rep

0.670

Wind Energy Potential in Sub-Saharan Africa

From the energy production capacity growth table it can be seen that use of Solar PV is high in Angola for the power generation and moreover it is cost efficient for the economy of Angola. This helps in improving the economy system and improving the growth rate so that better service can be provided to people and development can be provided to each sectors. Apart from solar, hydro, is the second most renewable energy that is being used. Angola is getting huge benefit from hydroelectric that helps the people and business perform to perform their operation without difficulty.

Country

Total

Mauritania

86.2

Mali

58.4

Chad

77.3

Niger

50.4

Congo

43.6

Angola

27.9

Sudan

27.6

Zambia

25.2

Mozambique

23.4

Botswana

22.4

Gabon

20.

Potential Annual Production of Renewable Energy

From the above data given by Review of World Energy, it can be seen that Angola is way down in using the renewable source of energy for production purpose. Further, it can be known that other sub-Saharan countries such as Central Afr. Rep., Mauritania, Chad, etc are ahead of Angola in terms of renewable energy use and due to that their economic is quite good in comparison to Angola. However, Angola is doing well to continuous focus on the renewable energy and provides sustainable energy to people. Therefore, it could be analyzed that Angola has availability of renewable energy in large and intelligently using their resources to generate electricity and solve the electricity problem in the rural areas (Sustainabledevelopment.un.org, 2015).

Apart from that, as per the World Bank Enterprise Survey Data, the losses relating to electrical outages can be known that affects the growth of the industry and nation.

Nations

Losses due to electrical outages

Angola

9%

Botswana

3.8%

Central African Republic

22%

Democratic Republic of Congo

19.6%

Mali

1%

Rwanda

1.8%

Zimbabwe

7%

Losses due to electrical outages as annual sales percentage (2010-2011)

It can be understood from the above table that, Angola is able to lower down electrical outrage which was higher in 2003 up to 34%. Although, the other nations such as Botswana, Mali, Zimbabwe, etc is doing then Angola therefore, Angola has to concentrate more on renewable energy to provide better benefit to the nation and industries. The renewable energy can help in decreasing the electrical failure as it can help in generating electricity at large (Unido.org, 2015).

Year

Power Consumption (TWh)

1990

125

2003

199

2006

469

2009

766

2011

923

2014

1182

Power Consumption Trend of Angola

It can be viewed from the above table that consumption of power in Angola has increased significantly. Till 2003, the consumption of energy was very less due to the effect of civil war and it hampered the infrastructure of Angola largely. Therefore, after over of civil war, the economy of Angola started to improve and Angola invested on infrastructure and power sector. Therefore, as a result, Angola was successful in employing renewable energy and it helped to solve electricity issue to some level. Further, Angola can be able to achieve success in future as well if use of renewable energy is done wisely (Unepfi.org, 2015).

As per the report of REEP Policy Database, Angola relies on local energy resources for meeting the requirements of limited domestic product and further demand of electricity is met by import. On the other hand, Ministry of Energy of Angola has decided to form new directorate responsible for the purpose of renewable energy so that national electrification department can be complimented.

Summary

The data analysis and discussion has been made on the basis of secondary resources which helped the researcher in understanding the issues of electricity in Angola and its impact on the urban or rural population. Angola was affected mostly because of civil war that damaged their infrastructure and energy sector and due to that most of the people were not able to receive electricity. Further, after over of civil war, Angola focused on their renewable sources and generated finance from other nations to develop their energy sector and make best utilization of resources. Therefore, it helped Angola to reframe their energy department and provide electricity to urban area as well as to rural areas. On the other hand, the industry started to improve their operation and losses caused due to electric outage was decreased.

 

Chapter 5

Conclusion

Introduction

In this section, the researcher will try to conclude the whole study whether the purpose of the study was fulfilled or not. The whole research study focused on the concept of renewable energy and its effectiveness in generation of electricity in Angola. The researcher was keen to understand the scenario of Angola in context to electricity supply so that energy sector can be improved and large number of people can access the electricity. It can be concluded from the research study that renewable energy can be effective for Angola and its citizens to gain electricity at large and that too at minimum costs. On the other hand, it has been seen that the economic performance of Angola has improved due to use of renewable energy. Therefore, it helped in generating power and improving the infrastructure so that people can be benefited and their standard of living can be improved.

Objective 1: To investigate the issues affecting the supply of electricity in country

As observed in data results and analysis, the issues relating to supply of electricity in Angola was mainly due to high percentage of costs involved in the installation of electric power infrastructure. Apart from that, Angola was affected by the civil war which had its serious negative impact on Angola. As a result, the energy sector has badly impacted and damaged the energy industry and due to that people suffered electricity failure or outage. On the other hand, the pricing policy of the government for the electricity was very less and because of that Angola suffered financial barrier. Moreover, the deficiency in the transmission and distribution of infrastructure has prevented the flow of electricity to people of Angola. Therefore, reliability of electricity supply was very meager. Apart from that, Angola lacked technology to use the renewable energy in order to generate electricity. The government of Angola did not have enough financial sources that could invest in the power infrastructure. Moreover, the people theft the electricity deliberately and due to that government is not able to provide electricity. On the other hand, there is lack of firm policy and because of that electricity has been wasted. Therefore, under-supply of electricity situation arises and leads to frequent electric blackouts. On the other side, Angola is not able to make full utilization of extensive river system and as a result, the production of electricity has not been achieved as per expectation. Apart from that, Angola is witnessing rapid urbanization and high informal settlement explosion and due to that number of illegal connections has rise and leads to power shortages. Therefore, it can be concluded that Angola faced various serious issues in terms of energy supply. The major issue is the cost of attracting the renewable energy. Angola did not have enough cost to meet the cost of technology for the development of power plants in different locations. The civil war has a great impact on Angola which affected the economic condition or made more worsen which hard for the nation to recover from it. Thus, limitations of funding bounded the government of Angola to take a beneficial leap towards the development of electricity in the country.

Objective 2: To examine the market entry policies into the renewable energy sector in Angola

The government of Angola laid down various policies towards the use of renewable energy so that electricity can be produced in abundance. The government set up IRENA Statute, Renewable Energy Office, etc to make better utilization of renewable energy. The nation has decided to new power station so that large number of Angolan citizen can be able to access the electricity. The nation has started to concentrate on solar PV, hydro, biomass, etc so that the nation does not have to face any finance burden and electricity can be generated with ease. On the other hand, government formed Renewable Energy Investment Law so that large amount of fund can be generated from the private investors and investment can be made in the energy sector. Therefore, Angola has invested in the energy and water for the electricity development and better and feasible environment can be provided to the people. Apart from that, Ministry of Energy and Water of Angola has been involved in the promotion of renewable energy sources and therefore, they have formed policy of Executives in relation to energy, water and sanitation. On the other hand, the state-owned companies in Angola are forming joint venture with the local company so that renewable energy can be used and the transmission of energy can be done in efficient manner.

The government has formed different strategies and policies towards the renewable energy sector. The government of Angola has welcomed renewable energy technologies by majorly focusing on solar, wind and hydroelectric plants in order to make best utilization of renewable resources and enhancing the economic growth rate of Angola in terms of electricity. Infusion of private capital has been done in the renewable energy sector so that energy sector can be build and well operated. Apart from that, decision has been taken for infrastructure development having reliance on natural gas and water resources in order to engage in energy sector development and employing renewable energy. The energy metering and monitoring system has been implemented so that illegal use of electricity can be stopped. The government started Programmes for small hydro and solar PV so that maximum electricity can be generated. The programme was developed in order to concentrate more on the renewable energy sector. This helped Angola to build number of dams for the electricity purpose. Apart from that, the government aligned Angolan future development strategy to get more advantage from their renewable energy. The investment was welcomed as a foreign direct investment for example; China provided investment to Angola for the development of renewable energy sector. The investment was valuable for the nation to overcome the issues of electricity which was affected by civil war. Moreover, it helped in the settlement of various power plants that can make potential use of natural resources in productive way with a view to provide electricity to rural and urban areas.

Objective 3: To investigate what has been done in terms of the use of natural resources for renewable energy in Angola

It can be concluded that the government of Angola make investment in the infrastructure that are capable of generating energy relying on renewable energy sources. On the other hand, the government spends USD 1.3 billion on energy in 2011 so that hydroelectric power plant can be developed. The technology were bought that can make best utilization of natural resources so that sustainable energy can be gained. Apart from that, different laws and regulations have been laid down in context to energy and electricity sectors. The law relating to natural resources points that use of resources has to be done intelligently without over-exploiting the resources. On the other hand, the General Electricity Law was updated which mentioned the use of natural resources to be done but not degrade the resources. Apart from that, dams or a power plant has to be building in effective manner that does not affect the natural resources. The government has planned to commercialize their natural gas resources for the betterment of the nation. The National Renewable Energy Laboratory is supporting government of Angola by providing wind resource data acquirement and analysis. This helps in knowing the speed of wind so that windmill electricity generator can be set up.

The government of Angola established Ministry of New and Renewable Energy so that energy supply of the nation can be diversified and satisfy the demand of energy. Apart from that, the government allowed foreign direct investment up to 100% in the renewable energy sectors with a view to exploit the natural resources and the need of electricity can be fulfilled. Therefore, the foreign direct investment helped in the natural resources utilization and produce electricity and moreover, it increased the private investment in the natural resources of Angola that benefited the nation and improved the GDP of the country. On the other hand, EAI helped Angola to develop strategy for the renewable energy sources. It assisted in focusing solar energy for solar PV and solar thermal or CSP; wind energy; bio-energy for biomass power, biodiesel, ethanol and hydro power. As Angola is a part of Southern African Power Pool (SAPP), the country received help from other member of SAPP for the exploitation of natural resources for gaining the renewable energy. On the other side, Empresa Nacional de Electricidade (ENE) dominates the electricity of Angola and as a result government allowed ENE to concentrate more on natural resources and make investment in technology so that renewable energy can be extracted.

Therefore, for using the natural resources, the government installed electricity capacity comprising hydro 76%; thermal 8% and gas 16%. As Angola is blessed with numerous rivers, they set up hydropower that has a capacity of 150000 GWh/year across the rivers such as Kwanza River, Cambambe River, etc. Therefore, it helped in best utilization of natural resources for the development of renewable energy for Angolan people.

Objective 4: To provide recommendations as to how the authorities in collaboration with energy companies can minimize the issues of power cuts in Angola

The investment can be made by the private entities in Angola that can help in fighting the power outrage. As the nation suffered huge losses due to power failure and due to that many business production turnover decreased. Therefore, government of Angola joined hands with South Africa and Brazil for building the electricity transport line and hydropower facility. On the other hand, Angola can seek support from International Atomic Energy Agency. This can help in formation of domestic nuclear power program that can be valuable for the nation to generate electricity at higher rate. On the other hand, the new electricity generating units has to be constructed for the production of electricity and it can help in supplying of power to business units, households, rural areas and urban areas.

The joint venture can be formed with the local company that can take care of the electric failure in different locations. Moreover, foreign direct investment can be greeted in the energy and water sector so that full utilization can be made and electricity can be produced. The electric capacity has to be increased by setting up large power plants that can absorb the energy efficiently and wastage of energy can be minimized. The private sector can investment in renewable energies for better consumption of natural resources and the investment can be valuable for the electricity production. Moreover, more power has to be given to ENE so that power can be produced in large and can be distributed to large area. On the other hand, EDEL can be allowed to buy the power as required and distribution has to be done efficiently so that electricity can be reached to every unit. Therefore, it would help in decreasing the power cut issues and people or business units can be able to receive electricity that can improve their standard of living and production.

Summary

In the conclusion section, different objective of the research has been discussed in effective way. The issues relating to electricity supply has been mentioned in brief that affected the national growth of Angola. Angola suffered mostly due to civil war and lack of capital. On the other hand, government of Angola has formed different policies in order to access in the renewable energy sector so that natural resources can be exploited. The government was able to use the natural resources which helped in solving the issues that was related with the electricity production. Apart from that, government has taken important steps towards the natural resource utilization. Number of technology was bought and investment was made in the area of natural resources so that energy sector can be improved. Lastly, recommendations have been provided that can help in decreasing the power cut issues in Angola. The people were made aware about the benefit of using the energy in sustainable way so that energy can be available for future generation.

Chapter 6

Recommendations

Introduction:

In the dissertation the impact of the renewable energy resource in Angola has been discussed and the data analysis is also provided for the research study. On the basis of the research study the conclusions are also drawn. In this chapter the recommendations are presented for the renewable energy in Africa and specifically in Angola. Thus in this chapter it is recommended how the renewable energy resource issues can be addressed and it should be improved within the economy.

Country Outlook:

It is evident that the country is shifting towards the urban drift but most of the population in Africa is mostly rural and there is limited access to electricity. The situation is more difficult in the region of Sub-Saharan Africa. Here 99.6% of the populations are living without the access to electricity. In the region of Angola the power cuts are causing various issues and thus it is necessary that the government undertakes various programmes in order to provide the required electricity in the region. It is evident that in such situation, the renewable energy resource is considered as one of the potential options that can improve the situation in the country. In the Northern Africa region, the there are heavily subsidised fossil fuel industry and it is used predominantly with improved infrastructure. Thus it is very important to strengthen the renewable energy resource base in the country. There can be various impediments or in developing a renewable energy sector in the nation but it is necessary in order to supply the electricity equally within all regions of the country.

Renewable Energy and the Path to Sustainable Growth:

It is known that in recent times, Africa is undergoing from a sustainable economic transformation and growth period. There is a rapid growth of population in the country and the economy is diversifying and developing continuously. It is very important to implement massive investment projects in order to sustain the growth in the economy. It is seen in the research study that Africa has the ability and the potential for the utilisation of the renewable energy resource and it can be used to fuel the majority of the future growth. Thus it can be said that it is economically competitive solution. The economies of scale will be unlocked by the solution and it would also offer substantial benefits in terms of the environmental sustainability, energy security, local value creation, and the equitable development (Afdb.org, 2015). It is evident that the unprecedented transformation will not happen by itself and it is only possible if the policymakers implement concerted efforts for developing and enabling the framework to spur investment in the market for adding various facilities in the economy. It is found in the dissertation that the renewable energy projects have been implemented in various locations in Africa and thus it can also be replicated in other regions as well for achieving the sustainable growth in the industry.

A Continent of Opportunity and Recommendations:

 By 2015, Africa can undergo sustained and unprecedented growth and it is evident that by 2015 the total population of the economy will be at least 2 billion people. The economy is growing at the rate of 4% per year. It is also considered as one of the fastest growing economies in the world. It is expected that the growth rate will significantly increase in the next decade and thus it is very important to build a better energy sector in the economy. It is one of the largest and diverse continents. It is evident that there is not equal or even distribution in all the countries in the continent. The use of alternative energy use and renewable energy is also different in various countries thus it is very important to equally distribute the opportunities in various regions of the country so that there can be equal growth in these regions. It is known that the decision regarding the growth of the renewable energy sector in Africa will implement long-term impact in the society and the economy (IRENA, 2013). It will also resolve the issues that are seen in case of Angola energy sector. The renewable energy can help in building alternative energy options for the economy. The growth and development of the energy sector in Africa will lead to the welfare of the society and the economy. It will also give the African countries the cost-effective path for the equitable, sustainable and rapid path of growth. Thus the aspirations of the country are to use sustainable energy in the industry.

In this context it can be said that the government should implement various strategies and should undertake various projects that can help in improving the energy structure in the country by building renewable energy plants in various locations. In December 2010, it was declared by the United Nations General Assembly (UNGA) that 2012 is the year of Sustainable Energy for all. According to the programme, it is very important for the developing countries to access the modern affordable service and the so that the goals and objectives can be achieved by the economy for the sustainable development. The initiatives should be undertaken by the government, the civil society partners and the private sector. The universal access to modern energy should be ensured by them. The government and other partners should also help in doubling the energy efficiency in the economy. The share of renewable energy should be increased as well (Afdb.org, 2015). There should be a Hub for the renewable energy in the economy and the government should provide their support and should make the efforts to increase the access to renewable energy in every location in the country so that the power issues are resolved in the country.

The energy growth of the renewable bases is both desirable and viable for the three biggest energy sectors in the country that are the transport, heat and electricity. Thus in the modern energy services the access can be increased for each and every individual. The renewable potential of power is substantially very high in the projected and present power consumption of the continent. The renewable energy-based electrification and the domestic bio-fuels can be used in the transport sector. These abundant resources can be successfully harnessed and the government can conduct a resource mapping for establishing the realistic targets and achieving the goals with the help of required and related policies implemented by the government or the private companies. It is known that the projects that are not profitable are not undertaken by the private organisations thus the government should take the initiative to undertake the projects. The private companies can undertake the projects that require large investment and which has the potential to accumulate large profits for the company.

It is evident that the renewable energy source is indigenous and they are also the most economical solution in remote areas of Africa. The renewable energy source will limit the dependence of the society on the fossil fuels imports and thus the economy can be self-sufficient in the energy resource. It is known that there can be excessive volatility in terms of the supply of fossil fuel in the economy and thus the impact of such volatility in the present economy can be minimised. Such dependence and the volatility in the supply and the prices of the fossil fuels can also affect the growth of the economy and thus alternative source o energy is required in Africa. In many circumstances the renewable energy generation is the most viable and economical option for the country (Afdb.org, 2015). The data needs to be collected in the economy for implementing effective policies that can help in increasing the efficiency in the energy sector.

It is known that the purchasing power of the population is very low in the economy. Thus infrastructural facilities needs to be added and the income generation opportunities can also be created in the economy with the help of these renewable power options. Here a streamlining power purchase arrangements can be conducted for the interconnected facilities for and for attracting the foreign investment.

The government can also undertake the portfolio of the policy tools for the support of the renewable technologies. Feed-in premiums and the feed-in tariffs are the standard power purchase agreements with a pre-set premium or the price. The government should take appropriate measures and policies to shift the cost of tariff on the consumer or the producer. The decision should be taken on the basis of the demographic characteristics and the economic condition of a region (Afdb.org, 2015). It is evident that the standardisation and streamlining procedures can be very effective public policies and these can help in tendering the mechanisms for the competitive pricing and the government can also control the choices of technologies as well. It is known that the solar power and the wind power can be very cost effective and thus these sources can be used for establishing power projects in the economy. It can help in achieving the economies of scale and additional benefits can also be achieved in terms of social welfare as the greenhouse gas emission will be reduced.

The government should play the main role in developing, coordinating and managing the infrastructural projects at the local level. The main grids can be connected with the isolated grids with the help of the infrastructural and the electrification programmes. The price convergence can also be established by the government. It is evident that resiliency and the diversification can be achieved in the economy if the renewable energy is added into existing energy system.

It is known that the infrastructural development is one of the major success factors that should be taken into account. In case of energy development programmes, the availability of the basis infrastructural facilities are very crucial and thus the government should take the initiatives for the provision of such infrastructural facilities in the economy. African countries can create a local value chain along the operations, maintenance, construction, components and the materials. It is known that in Africa several projects are undertaken for the infrastructural facilities in various regions of Africa. But the operations should be extensive and the government and other investors must undertake the projects in extensive form for equal provisioning of energy facilities in different regions. For attracting the private investment various components must be identified so that the local supply chain can be extended. There should be sufficient amount of market volumes that can help in securing the long-term contracts for the justification of the local investment.

There can be two groups of challenges that must be taken into account before visioning for any long-term plans in the energy sector in African countries. One challenge can be faced in rural regions and other challenges can be faced in cities. Thus it is the responsibility of the regulating agencies for undertaking measures for providing effective solution in these regions. The local authorities must design integrated and sound rural and urban policies so that the growing demands of the people can be met in terms of energy. The government should also ensure that the living standards in the rural and the urban region converge.

It is known that the population of Africa will triple within the next 40 years. Thus effective measures must be implemented by the government and the local authorities so that the increased demand for energy in various regions are met. They need to provide the required facilities at a more affordable cost to the urban and rural population. Thus the government should also attract foreign investors in the economy. The investment from the foreign investors can also be very effective in provisioning the service.

Conclusion:

 In this chapter the recommendations regarding the renewable energy sector in Angola and other African countries has been presented. It is identified in this chapter that in African countries the renewable energy should be expanded for meeting the goals and objectives of the nations and fulfilling the demands of the consumers. Thus the government should actively implement policies so that the sector can be improved.

 

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