The Cabeólica Phase II Expansion Project in Cabo Verde has received a €19.6 million boost from the African Development Bank Group, supporting the country’s groundbreaking efforts to combine wind power and battery energy storage at scale.
€19.6 Million Approved to Advance Clean Energy
The financing package includes a €12.6 million loan from the African Development Bank (AfDB) and €7 million in concessional funding from the Bank-managed Sustainable Energy Fund for Africa (SEFA). This support will enable the installation of 13.5 megawatts of additional wind power capacity and 26 megawatt-hours of grid-connected battery storage.
Expected to produce over 60 gigawatt-hours of clean energy annually, the Cabeólica Phase II Expansion Project will reduce reliance on diesel-based generation and cut carbon emissions by approximately 50,000 tonnes per year.
Strengthening Cabo Verde’s Energy Security
“The Cabeólica Phase II Expansion Project reflects Cabo Verde’s bold vision to decarbonize its energy sector,” said Wale Shonibare, Director for Energy Financial Solutions at AfDB. “It showcases how concessional finance can mobilize private investment to deliver resilient, cost-effective power systems.”
Daniel Schroth, AfDB Director for Renewable Energy, added: “SEFA’s support enhances grid reliability while lowering power generation costs—proving how strategic financing and technology integration can drive sustainable transformation.”
Cabeólica Continues to Lead Renewable Innovation
Ayotunde Anjorin, Chairman of Cabeólica and CFO at Africa Finance Corporation, emphasized: “As Africa’s first utility-scale renewable PPP, Cabeólica is again leading the way with this transformative expansion, aligning clean energy infrastructure with national development goals.”
The expansion covers five installations across four islands—wind expansion on Santiago and BESS deployments on Santiago, Sal, Boa Vista, and São Vicente. The battery systems will provide grid services such as voltage regulation and frequency response, reducing wind power curtailment and enhancing efficiency.
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Long-Term Impact and Strategic Alignment
Underpinned by a 20-year power and storage agreement with Electra S.A., the Cabeólica Phase II Expansion Project supports Cabo Verde’s target of generating 50% of electricity from renewables by 2030. It aligns with AfDB’s “Light Up and Power Africa” initiative and SEFA’s Green Baseload pillar.
