Cabeolica invest US$50M to expand its wind energy production capacity

CAPE VERDE – Cabeolica is investing US$50 million to significantly expand its wind energy production capacity in Cape Verde.

This move has received official approval from the Cape Verdean Ministry of Industry, Trade, and Energy, signaling a major step forward in renewable energy development for the island nation.

The expansion project focuses on increasing wind power generation on Santiago Island from 9 MW to 22 MW.

Additionally, Cabeolica will invest in two new electricity storage systems: a 9 MW/5 MWh system on Santiago Island and a 6 MW/6 MWh system on Sal Island.

Minister Alexandre Monteiro emphasizes the importance of battery energy storage systems (BESS) for stabilizing the grid and managing surplus renewable energy.

This investment aligns with Cape Verde’s ambitious goal to raise the share of renewable energies in its electricity mix to 30% by 2025, up from the current 20%.

By expanding renewable energy capacity, Cape Verde aims to reduce its reliance on imported fuels for thermal power stations, saving approximately €1 million annually.

Despite currently generating 80% of its electricity from thermal sources, the country’s transition towards renewables is gaining momentum.

Cabeolica, a public-private partnership (PPP) between the government and investment entities like Africa Finance Corporation (AFC), plays a crucial role in this transition.

The company already supplies 17% of Cape Verde’s electricity through 30 wind turbines spread across four islands: Boa Vista, São Vicente, Sal, and Santiago.

With ownership restructuring in recent years, including investment from A.P. Moller Capital and AFC, Cabeolica is well-positioned to drive renewable energy expansion in Cape Verde.

This investment not only contributes to energy diversification but also aligns with broader sustainability objectives for the nation.

In related news, Finnish renewable energy and hydrogen project developer Flexens Oy Ab revealed plans last year to explore the feasibility of developing a large-scale green Power-to-X project in the Cape Verde archipelago in the Atlantic Ocean.

The company, in which France’s Lhyfe SA holds a 49% stake, recently announced the signing of a Memorandum of Understanding (MoU) with Cape Verde’s energy ministry to collaborate on feasibility studies.

Under this initiative, Flexens intends to integrate extensive wind and solar power generation with electrolysers to produce green hydrogen and e-ammonia. The resulting output could potentially be exported to other countries.

Rito Evora, National Director of Industry Trade and Energy at the Ministry of Industry, Trade, and Energy of Cape Verde (Cabo Verde), emphasized the importance of finding strategic partners for the country’s green transition and future energy production.

He highlighted Flexens’ expertise and approach as capable of addressing both opportunities and challenges in Cabo Verde.

According to government data from last summer, approximately 80% of Cabo Verde’s total energy supply came from imported petroleum products, with renewable sources accounting for less than 20%.

The nation’s objective is to achieve a renewable energy penetration rate of 50% by 2030, underscoring the urgency and significance of initiatives like those proposed by Flexens.

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