Cape Verde has inaugurated a major expansion of its flagship Cabeolica Wind Farm, adding new wind capacity and one of Africa’s most advanced battery energy storage systems (BESS), in a project backed by the Africa Finance Corporation (AFC).
Prime Minister Ulisses Correia e Silva presided over the ceremony on Santiago island, marking what officials described as a decisive step toward the archipelago’s goal of sourcing the majority of its electricity from renewables.
The expansion was made possible after AFC provided €55 million in bridge financing in 2024, enabling the project to move ahead rapidly while long-term funding structures are finalised. AFC said the early financing allowed construction and commissioning to advance ahead of schedule, strengthening grid stability and accelerating Cabo Verde’s emissions-reduction and energy–security plans.
The project adds 13.5 megawatts of new wind capacity on Santiago and 26 megawatt-hours of battery storage across four islands. The storage system is already helping stabilise the grid, improving frequency regulation, reducing renewable energy curtailment and supporting a higher share of intermittent electricity.
Cabo Verde, a volcanic archipelago of 10 islands with limited natural resources, has long been dependent on imported fuel. That dependence exposes the country to price volatility and drains foreign exchange reserves. As part of its national energy strategy, the government aims to source 50% of power from renewables by 2030 and 100% by 2050.
With abundant wind and solar potential, the country has become a regional frontrunner in renewable integration. However, its isolated island grids face intermittency challenges that require stabilising systems such as batteries a key reason the BESS component of the expansion is considered transformational.
AFC’s involvement in the wind farm Cabeolica
AFC has been a majority investor in Cabeolica since 2010, the year the company became the first commercial-scale renewable public-private partnership in sub-Saharan Africa. Its four original wind farms, totalling 25.5 MW across four islands, have generated over 800,000 MWh of electricity in the past decade. The installations contribute roughly a quarter of Cabo Verde’s annual power supply while avoiding more than 560,000 tonnes of CO₂ emissions.
AFC said the latest expansion reinforces Cabeolica’s role as a cornerstone of the national energy system and a model for other small island states seeking cleaner, more resilient power.
The new BESS is expected to reach nearly 30 MW of storage capacity by January 2026, making it one of the largest battery projects in West Africa. AFC’s interim funding bridged the construction phase while long-term financing from senior lenders including the African Development Bank and the European Investment Bank is being completed.
“From the early days of the Cabeolica project to this milestone inauguration, AFC’s mission has remained unwavering: to catalyse renewable energy solutions that enhance the reliability and resilience of power systems across Africa,” AFC President and CEO Samaila Zubairu said. He said the rapid delivery of the expansion demonstrates AFC’s ability to deploy innovative financing in support of Africa’s energy transition.
Ayotunde Anjorin, Chairman of Cabeolica and AFC’s Chief Financial Officer, said the project reflects Cabo Verde’s commitment to reliable, clean power infrastructure. “As the first renewable energy commercial-scale PPP in sub-Saharan Africa, Cabeolica is again proud to partner with AFC to lead this transformative expansion,” he said.
AFC has stepped up its investment in renewable infrastructure across the continent as African governments seek to cut carbon emissions, reduce reliance on imported fossil fuels and improve energy access. The corporation’s portfolio company, Infinity Power the largest independent renewable provider in Africa recently reached financial close on Egypt’s 200 MW Ras Ghareb wind project, which will power an estimated 300,000 homes.
For Cabo Verde, the Cabeolica expansion is expected to reduce blackout risks, lower electricity costs over time and advance the country’s long-term ambition of running a near-carbon-neutral power system a rare achievement in the region and a potential benchmark for other African nations pursuing ambitious green-energy transitions.
