The Cape Verdean government will sign a contract on Tuesday, October 28, to modernize the solar park supplying the capital, Praia, marking the first project financed through the debt conversion agreement with Portugal, Lusa reported, citing an official statement.
The contract, called “Repowering of the Palmarejo Photovoltaic Plant”, plans to increase the current maximum capacity from 4.4 megawatts (MW) to 10 MW—enough to supply electricity to 20,000–25,000 residents.
The project involves the systematic and complete replacement of existing solar panels with newer, more efficient models, according to the Ministry of Energy’s statement.
This is the first project financed by the Climate and Environmental Fund, an initiative approved by the Cape Verdean Parliament in July 2024. The fund initially drew on €12.5 million from the debt owed to Portugal, later increased.
The fund’s purpose is to mobilize and accelerate investments with a significant climate and environmental impact, measured by the reduction of greenhouse gas emissions. In practice, it can finance renewable energy, energy efficiency, agriculture, fisheries, transport, and other sectors.
The Cape Verdean government has highlighted the agreement with Portugal as a model to attract other partners for similar mechanisms.
In January, during the 7th Summit between the two countries in Lisbon, the debt conversion program was expanded from the initial €12.5 million to €42.5 million, with a horizon extending to 2030.
Source: Diário Económico
