- AFC backed the project with €55 million in bridge financing to accelerate delivery.
- Expansion adds new wind capacity and battery storage to strengthen grid stability.
Africa Finance Corporation has announced the inauguration of the expanded Cabeolica Wind Farm and Battery Energy Storage System in Cabo Verde, marking a major milestone in the country’s renewable energy transition. The project was made possible through €55 million in bridge financing provided by AFC in 2024 to fast track construction and commissioning.
The inauguration ceremony was officiated by Prime Minister Ulisses Correia e Silva and highlighted the role of early stage financing in enabling the rapid deployment of strategic energy infrastructure. AFC’s funding allowed the expansion and battery system to come online earlier, supporting grid stability, increasing renewable energy penetration and advancing national emissions reduction targets.
Image credit: AFC
The expansion delivers 13.5 MW of additional wind generation capacity on the island of Santiago, alongside 26 MWh of battery storage distributed across four islands. The battery system is already improving frequency regulation and reducing renewable energy curtailment, strengthening the resilience of Cabo Verde’s national grid and reducing reliance on imported fossil fuels.
AFC has been a majority investor in Cabeolica S.A since 2010, supporting its development into one of Cabo Verde’s strongest power sector institutions and the first commercial scale renewable public private partnership in sub Saharan Africa. Over the past decade, Cabeolica’s 25.5 MW of wind capacity has generated more than 800,000 MWh of electricity, supplying around a quarter of the country’s total power generation and avoiding more than 560,000 tonnes of carbon dioxide emissions.
The newly inaugurated battery energy storage system is expected to reach close to 30 MW of capacity when fully completed in January 2026. Once finalised, it will enable greater integration of intermittent renewable energy and further improve grid reliability. Long term financing from senior lenders including the African Development Bank and the European Investment Bank is currently being finalised.
Speaking at the event, AFC President and Chief Executive Officer Samaila Zubairu said the project demonstrates the institution’s commitment to strengthening power systems across Africa through innovative financing and infrastructure delivery. He noted that the integration of new wind capacity with advanced battery storage positions Cabo Verde as a regional leader in clean energy deployment.
Ayotunde Anjorin, Chairman of Cabeolica and Chief Financial Officer of AFC, said the expansion reinforces Cabeolica’s role as a cornerstone of the country’s clean energy system and provides a replicable model for renewable energy development across the continent.
AFC continues to expand its renewable energy portfolio across Africa. Most recently, its portfolio company Infinity Power reached financial close on the 200 MW Ras Ghareb Wind Farm in Egypt, which is expected to supply electricity to more than 300,000 homes.
Author: Bryan Groenendaal
