Cabo Verde has historically relied on expensive and volatile imported fossil fuels for its electricity generation. This dependence exposes the country to high energy costs, foreign currency pressures, and energy security risks.

In addition, fossil fuel combustion contributes to greenhouse gas emissions and air pollution, which can harm biodiversity and public health. Meeting the growing demand for reliable and affordable electricity in a sustainable way has been a pressing challenge for this small island nation.

Cabeólica, part of A.P. Moller Capital’s portfolio since 2021 through its second institutional fund, A.P. Moller Capital – Emerging Markets Infrastructure Fund II, operates four wind farms on Santiago, São Vicente, Sal, and Boa Vista, providing 25.5 MW of renewable capacity and meeting about 18% of national electricity demand.

These projects marked the first Public-Private Partnerships to deliver commercial-scale wind power in sub-Saharan Africa.

Building on this success, Cabeólica is now constructing a 13.5 MW wind farm with a 6 MW Battery Energy Storage System (BESS) on Santiago Island, alongside an additional 20 MW of BESS across Sal, São Vicente and Boa Vista.

This integrated approach will displace fossil fuel generation, increase renewable penetration, and improve supply reliability, directly supporting Cabo Verde’s sustainability commitments.

The expansion is expected to displace 55 GWh of heavy fuel oil and gas oil annually, raising renewable energy’s share from 18% to 30% by 2025. This shift will lower electricity generation costs in the grid by 15%, save on fossil fuel imports, and reduce the country’s balance of payments deficit by 2.4%.

A third-party impact study projects the creation of 1,561 jobs, or the equivalent to 0.75% of Cabo Verde’s total employment.

Environmentally, the expansion will improve air quality and public health, help preserve biodiversity, and avoid an estimated 849 Mt of CO₂ between 2023 and 2044, cutting national emissions by 13% compared to the baseline scenario.