EIB and EU funding package to modernise Cabo Verde’s energy system
Image courtesy EIB
The government of the Republic of Cabo Verde, the European Union and the EIB have signed financing of €300 million ($330.6 million) for the country’s energy, digital and port sectors; more than half will go to building a grid, generation and energy storage system up to 2029.
For energy, €159 million ($175 million), provided by the EIB, European Union and Luxembourg, will involve designing and building an electricity generation, grid and storage system.
The financing falls under Cabo Verde’s national electricity master plan 2018-2040, which aims to reduce the country’s dependence on expensive and polluting fossil fuels by 2040.
It will also provide new storage capacity for electricity from renewable sources.
Commenting in a release was European commissioner for International Partnerships, Jutta Urpilainen: “The cooperation between Cabo Verde, the European Union and the EIB shows our shared commitment to a sustainable, inclusive and connected future under the Global Gateway strategy.
“This investment will not only modernise important infrastructure, but also position Cabo Verde as a regional leader in renewable energy and digital innovation. Together, we are paving the way for a more sustainable and prosperous future for the people of Cabo Verde and the entire West African region.”
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Global Gateway
The financing decision falls under the European Union’s Global Gateway strategy in Cabo Verde.
Launched at the end of 2021, the Global Gateway strategy is a European Commission initiative to mobilise new investment to contribute to the sustainable development of emerging partner countries in the fields of energy, digital and transport; as well as for improving health, education and research systems around the world.
This latest round of financing comes nearly a year after the Global Gateway Forum in October, 2023, where a previous package worth €246 million ($273 million) was announced to boost the country’s green transition, sustainable transport and digital connectivity.
The energy package announced at the time was two-fold.
First, the EU and EIB agreed to pool resources to provide a blended grant and framework loan, focusing on developing a pumped storage facility and other essential components to optimise energy use.
Second, the EIB announced a corporate loan to support renewable energy firm Cabeólica’s wind farm expansion project, which will add 13MW of clean, renewable energy to the nation’s grid. This expansion includes the installation of two 5MW wind turbines and a 5MW hour energy storage system.
Under the latest financing, €37 million ($41.1 million) will be used to develop stronger digital connections and €105 million ($116.5 million) to expand and modernise Cabo Verde’s strategic ports.
Said deputy prime minister, minister of Finance and Business Development and minister of Digital Economy of Cabo Verde, Olavo Correia: “It is with great enthusiasm that we welcome these strategic investments – a major step forward on our journey to sustainable development and technological innovation.
“These projects will not only modernise our digital and energy infrastructure, but also reinforce our commitment to creating a prosperous future for all Cabo Verdeans. The investments show our ongoing effort to position Cabo Verde as a regional leader in technology and renewable energy.”
