Cape Verde will receive €19.6 million in financing from the African Development Bank (AfDB) to support the second phase of its Cabeólica energy transition project, aimed at increasing renewable energy’s share in national electricity production to 50% by 2030.
The funding package includes a €12.6 million loan from the AfDB and a €7 million concessional loan from the Sustainable Energy Fund for Africa (SEFA).
Phase II of the project will introduce 13.5 megawatts of new wind capacity and a 26 megawatt-hour grid-connected battery energy storage system (BESS), generating over 60 gigawatt-hours of clean energy annually and reducing carbon emissions by around 50,000 metric tons.
The expansion will be implemented across four islands—Santiago, Sal, Boa Vista, and São Vicente—strengthening energy security and reducing dependency on imported fossil fuels.
Led by Cabeólica SA, the country’s main independent power producer, the project benefits from a 20-year power purchase and storage agreement with the national utility Electra SA at rates lower than current production costs.
The initiative aligns with Cabo Verde’s climate commitments under the Paris Agreement and supports AfDB’s “High 5” agenda to light up and power Africa, as well as the Bank’s Ten-Year Strategy and SEFA’s Green Baseload pillar.
