Evaluation of Off-grid Photovoltaic Projects for Schools and Health Posts in Angola

Most regions in Saharan Africa still cannot sufficiently meet electricity needs and, although access to electricity has been increasing, electricity access remains a fundamental problem for the region. Several countries have endogenous energy resources, including important oil and gas reserves, and high renewable energy resources potential. Despite these favourable conditions, these regions face a critical challenge in providing access to electricity, particularly in socioeconomically vulnerable regions that still rely on diesel generators to meet their basic electricity needs. This study focuses on off-grid photovoltaics projects in Sub-Saharan Africa, addressing the cases of electricity supply to schools and health posts in two localities in the Centre and South regions of Angola. The analysis includes a first assessment of the avoided CO2 emissions and the traditional discounted cash flow method, complemented by a Monte Carlo Simulation to identify key uncertainties. The results show that the economic viability of the projects is significantly compromised by low subsidised diesel prices. Nevertheless, it is crucial to recognize the importance of these projects for the sustainable development including health improvements resulting from the reduced use of highly polluting diesel, increased electricity security of supply and advances on the literacy of deprived populations.