AfDB Approves €19.6M to Expand Wind and Battery Power in Cabo Verde
The African Development Bank Group has greenlit a €19.6 million financing package to support Cabeólica Phase II, a groundbreaking renewable energy project in Cabo Verde that combines wind generation with battery energy storage systems (BESS).
This ambitious expansion builds on the success of the original Cabeólica wind project launched in 2012 and positions Cabo Verde closer to its national target of producing 50% of its electricity from renewable sources by 2030.
A First for Cabo Verde—and the Region
Cabeólica Phase II marks the country’s first renewable energy venture to integrate battery storage at scale, enhancing both the reliability and efficiency of wind power. The project is expected to:
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Add 13.5 MW of wind capacity
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Introduce 26 MWh of grid-connected battery storage
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Generate 60+ GWh of clean electricity annually
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Cut CO₂ emissions by 50,000 tonnes per year
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Reduce the country’s reliance on costly, imported fossil fuels
Financing the Future of Energy
The financing structure includes:
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€12.6 million loan from the African Development Bank
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€7 million concessional loan from the Sustainable Energy Fund for Africa (SEFA)
Wale Shonibare, Director for Energy Financial Solutions, Policy and Regulations at AfDB, emphasized that the project “demonstrates how private sector investment, facilitated by catalytic concessional financing, can deliver cost-effective, sustainable energy solutions for small island economies.”
Boosting Grid Reliability and Power Security
The project involves installations on four islands—Santiago, Sal, Boa Vista, and São Vicente. In addition to wind expansion on Santiago, BESS will be deployed across all four, supporting critical grid services such as:
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Frequency response
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Voltage regulation
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Reduced curtailment of wind power
Daniel Schroth, AfDB’s Director for Renewable Energy and Efficiency, highlighted the role of battery integration in “enhancing power security and reducing generation costs in Cabo Verde.”
Public-Private Partnership for Impact
Cabeólica, the country’s first independent power producer (IPP), is a joint venture between Africa Finance Corporation, A.P. Moller Capital, and Cabo Verdean public entities. Phase II is backed by a 20-year power purchase and storage services agreement with Electra S.A., the national utility—at tariffs well below the country’s average generation costs.
According to Ayotunde Anjorin, Chairman of Cabeólica, the project reflects “a deep commitment to delivering reliable, clean energy infrastructure in line with national goals,” and sets “a replicable model for the region.”
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Advancing Sustainable Development Goals
This project supports:
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Cabo Verde’s Nationally Determined Contributions (NDCs) under the Paris Agreement
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The African Development Bank’s “Light Up and Power Africa” High-5 initiative
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AfDB’s Ten-Year Strategy and SEFA’s Green Baseload pillar
With this latest investment, Cabo Verde is taking a bold step toward a more resilient, low-carbon energy future—one that could serve as a model for other small island nations.
