The government of Cape Verde has entered into a contract with Cabeolica, a domestic partly state-owned wind power operator, to support the expansion of its wind farm and the installation of battery energy storage systems (BESS) in the archipelago nation off the West African coast.
The initiative, representing an investment of CVE 5 billion (USD 48.2m/EUR 45.3m), will be financed by the European Investment Bank, African Development Bank, and AFC Equity Investments.
Cabeolica plans to increase the capacity of its Santiago wind farm from 9 MW to 22 MW by adding more turbines. Additionally, the company will install a 9 MW/5 MWh BESS on Santiago and a 6 MW/6 MWh unit on the island of Sal.
According to Alexandre Monteiro, Cape Verde's minister of industry, trade, and energy, these new facilities will contribute to annual cost savings of approximately CVE 1 billion in fuel imports.
Works on the wind farm expansion are scheduled to begin in July 2024.
Currently, renewables account for 20% of the total installed capacity in Cape Verde, as reported by ALER, the renewables association of Portuguese-speaking African countries. Minister Monteiro stated that Cabeolica's latest projects could help the country achieve over 30% penetration of renewable energy by 2025.
Cabeolica owns and operates four wind farms with a combined capacity of 25.5 MW, located on the islands of Santiago, Sao Vicente, Sal, and Boa Vista. The company's largest shareholder, with a 50% stake, is AFC Equity Investments, a wholly-owned subsidiary of Africa Finance Corporation. Since 2021, Danish fund manager A.P. Moller Capital has owned a 44% stake. The government of Cape Verde and national utility Electra hold the remaining 6%.
