Cape Verde greenlights wind farm expansion, BESS projects

The Cape Verde government has signed a contract with the domestic partly state-owned wind power operator, Cabeolica, to support its wind farm expansion and battery installation projects in the archipelago nation off the West African coast.

The initiative represents an investment of CVE 5 billion (USD 48.2m/EUR 45.3m), financed by the European Investment Bank, African Development Bank and AFC Equity Investments, the government said.

Cabeolica will use the funds to add more turbines to its Santiago wind farm in the namesake island to raise its capacity to 22 MW from 9 MW. The company will also add a battery energy storage system (BESS) with a capacity of 9 MW/5 MWh in Santiago and another unit of 6 MW/6MWh on the island of Sal.

The new facilities will contribute to annual cost savings of around CVE 1 billion in fuel imports, according to Cape Verde’s minister of industry, trade and energy Alexandre Monteiro.

Works on the wind farm expansion are due to commence in July 2024.

Cape Verde’s renewables account for 20% of the total installed capacity in the country, according to ALER, the renewables association of Portuguese-speaking African countries. Cabeolica’s latest projects could help Cape Verde achieve over 30% penetration of renewable energy by 2025, minister Monteiro said.

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. Danish fund manager A.P. Moller Capital has owned a 44% stake since 2021. The government of Cape Verde and national utility Electra hold the remaining 6%.

(CVE 100 = USD 0.963/EUR 0.907)

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