Angola Energy 2025 Electricity Law Reform: New Power Sector Opportunities for U.S. Companies

Market Overview

In January 2025, the Government of Angola enacted its second amendment to the General Electricity Law (Law No. 14/96), representing a significant step toward liberalizing the country’s electricity sector. Building on earlier reforms introduced in 2015 (Law No. 27/15), the new legislation aims to attract private investment, improve operational efficiency, and support Angola’s energy transition. The updated law introduces structural changes designed to open the market and improve bankability for energy projects. These developments present new commercial opportunities for U.S. companies with expertise in power infrastructure, renewable energy, project finance, and technology solutions.

Key Reforms

Transmission Sector Liberalization:

Electricity transmission, previously restricted to public sector control, is now open to private-sector participation through concession agreements. This shift allows qualified companies to finance, build, and operate transmission infrastructure under long-term contracts. It reflects a broader effort to improve the resilience and reach of Angola’s national grid while mobilizing private capital to address infrastructure deficits.

Market Operator and Bilateral Purchase Power Agreements (PPAs):

The amended law mandates the establishment of an independent market operator to replace the former single-buyer system. Although this body has yet to be created, its future role will be to oversee market operations and facilitate electricity trading. The reform enables direct bilateral power purchase agreements (PPAs) between electricity producers and large-scale consumers, such as mining firms, manufacturers, logistics hubs/centers, or industrial zones—creating a more predictable and competitive framework for project financing.

Support for Renewable Energy Deployment:

The legislation expands the government’s authority to incentivize renewable energy projects, particularly in rural and underserved areas where grid access is limited or nonexistent. Fiscal incentives, streamlined approvals, and prioritization of public-private partnerships are expected to attract developers interested in deploying solar, hydro, or hybrid systems. The reform aligns with Angola’s broader energy mix diversification strategy and its goals under the UN Sustainable Development Goals (SDGs).

Distribution Sector Flexibility:

While maintaining a concession regime, the law introduces more adaptable terms for electricity distribution contracts. It allows for performance-based adjustments and potentially shorter contract durations, making it easier for new market entrants to operate on a competitive basis. This increased flexibility is designed to attract smaller-scale distributors and companies offering innovative, localized solutions to power delivery.
 

Opportunities for U.S. Companies

Transmission Infrastructure Development

With the market now open to private players, U.S. firms with experience in grid expansion, high-voltage line construction, substation development, and transmission network management can participate in concession bids. Angola’s power grid requires substantial modernization and expansion to connect generation sources to major consumption hubs. U.S. firms with advanced transmission technologies and engineering capabilities will find opportunities in both urban and remote regions.

Renewable Energy Project Development

Angola’s push for decentralized, clean energy opens the door for U.S. developers of solar, wind, hydro, and hybrid energy systems. The government’s prioritization of rural electrification and its interest in private-sector-led mini-grids create demand for modular, scalable technologies. U.S. companies offering off-grid solutions, battery storage, and technical assistance can play a pivotal role in closing Angola’s energy access gap while benefiting from fiscal incentives and growing political support for climate-aligned infrastructure.

Energy Trading and Industrial Offtake

The transition to a more open market with bilateral PPAs gives U.S. energy firms the opportunity to contract directly with Angolan industrial consumers. This is particularly relevant for firms offering utility-scale solutions or operating in energy-as-a-service models. Energy-intensive sectors such as mining, cement, and agriculture may seek long-term, cost-stable electricity supply from private producers. U.S. companies that can structure flexible PPA terms and deliver reliable generation may be well-positioned to serve this demand.

Project Finance and Risk Mitigation

Angola’s evolving legal environment still carries risk, but U.S. firms can leverage support from U.S. government-backed financial institutions. The Export-Import Bank of the United States (EXIM) and the U.S. International Development Finance Corporation (DFC) offer risk mitigation tools, loan guarantees, and direct financing for infrastructure and clean energy investments. These resources can enhance bankability, reduce commercial risk, and support U.S. competitiveness against third-country bidders.
 

Important Market Considerations

Despite these advancements, doing business in Angola remains complex. The Doing Business Angola 2025 report cites persistent challenges, including delays in licensing, foreign exchange limitations, infrastructure gaps, and regulatory uncertainty. Companies should be prepared to navigate a regulatory system that is still evolving and to work closely with local partners to manage risk. Angola’s 2025 Electricity Law reform provides a foundation for a more competitive and investment-friendly electricity market. For U.S. companies, it presents a timely opportunity to engage in one of Africa’s most promising but underdeveloped power sectors. 

Next Steps 

For more information about the key opportunities in the energy sector, and to design your market-entry strategy, U.S. companies can contact: Commercial Assistant Mauro Fonseca at Mauro.Fonseca@trade.gov