Cabo Verde has secured fresh financing to advance its clean energy ambitions, as the African Development Bank (AfDB) approved a €19.6 million package for the Cabeólica Phase II Expansion Project.
The project marks a significant milestone as Cabo Verde’s first large-scale renewable energy initiative to combine wind power generation with battery energy storage systems (BESS).
The financing includes a €12.6 million loan from the AfDB and €7 million in concessional funding from the Sustainable Energy Fund for Africa (SEFA), reflecting the growing international support for Cabo Verde’s energy transition.
Building on the success of the original Cabeólica project, commissioned in 2012, Phase II will add 13.5 megawatts of wind capacity and 26 megawatt-hours of storage across five sites on four islands—Santiago, Sal, Boa Vista, and São Vicente. The integration of battery storage will allow the grid to better absorb intermittent wind power, providing frequency response, voltage regulation, and reducing curtailment. This innovation is expected to generate over 60 gigawatt-hours of clean electricity annually, cutting carbon emissions by 50,000 tonnes while displacing costly imported thermal generation.
Cabeólica S.A., the country’s first independent power producer, is jointly owned by Africa Finance Corporation, A.P. Moller Capital, and Cabo Verdean public entities. A 20-year power purchase and storage services agreement has been signed with national utility Electra S.A., offering tariffs substantially lower than current generation costs.
This project supports Cabo Verde’s ambitious target to source 50% of its electricity from renewables by 2030, aligned with its Nationally Determined Contribution under the Paris Agreement. Beyond enhancing energy security, it also positions the island nation as a model for small-island developing states pursuing energy independence through innovative green infrastructure.
Source: Further Africa
