The African Development Bank (ADB) has approved €19.6 million in financing for the second phase of the Cabeólica expansion project, a flagship initiative in the renewable energy sector in Cape Verde. This is the first large-scale national project combining wind power generation and battery energy storage systems (BESS), according to a press release published on Monday, June 16

The financing includes a loan of approximately 12.6 million euros from the African Development Bank and a seven million euros concession loan from the Sustainable Energy Fund in Africa (SEFA), an entity managed by the Bank Group.

Building on the success of the initial Cabeólica power plant project commissioned in 2012, Phase II will add 13.5 megawatts of wind generation capacity and 26 megawatt hours of grid-connected battery energy storage. This expansion is expected to produce over 60 gigawatt hours of clean energy per year, eliminating costly thermal generation and reducing carbon dioxide emissions by around 50,000 tons

“This project is a testament to Cabo Verde's long-term vision to decarbonize its electricity sector and strengthen its resilience. It also shows how private sector investments, facilitated by catalytic concession financing, can bring cost-effective and sustainable energy solutions to small island economies,” said Wale Shonibare, director of financial solutions, energy policies and regulations at the African Development Bank

For Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the Bank Group, “SEFA's support for the integration of battery storage into the Cabo Verde electrical system reinforces energy security and grid reliability, while reducing the costs of production in Cabo Verde”. He notes that the project highlights the added value of a smart combination of finance and technology to strengthen the long-term sustainability of the electricity sector