The African Development Bank Group (AfDB) has approved a loan package of around $23 million to assist the Cabeólica Phase II Expansion Project in Cabo Verde, a renewable energy initiative that will integrate wind power generation and battery energy storage systems (BESS) at scale.
The finance includes a $15 million loan from the AfDB and a $8 million concessional loan from the Bank Group-managed Sustainable Energy Fund for Africa (SEFA), according to the AfDB.
Building on the success of the initial Cabeólica power project, which began in 2012, Phase II seeks to add 13.5 megawatts of wind generation capacity and 26 megawatt-hours of grid-connected battery energy storage.
The expansion is expected to generate over 60 gigawatt-hours of clean energy annually, eliminating expensive thermal generation and reducing carbon dioxide emissions by an estimated 50.000 tonnes annually.
Battery storage will support ancillary grid services such as frequency response and voltage regulation, enabling more efficient use of intermittent wind power and reducing curtailment.
With Cabo Verde’s electricity system still heavily reliant on imported fossil fuels, these upgrades are expected to reduce system costs and enhance energy security, said the AfDB.
According to Daniel Schroth, AfDB's director of renewable energy and efficiency, the project shows the importance of the correct balance of financing and technology in ensuring long-term power sector sustainability.
Ayotunde Anjorin, chairman of Cabeólica, senior director, and CFO at Africa Finance Corporation, said: “As the first renewable energy commercial scale Public-Private Partnership in sub-Saharan Africa, Cabeólica is again proud to lead this transformative expansion project comprising additional wind capacity and battery energy storage. This project underscores Cabeólica’s deep commitment to delivering reliable, clean energy infrastructure in line with national goals and priorities and continues to set a replicable model for the region.”
Share