World Bank Approves $13.3 Million Concessional Financing for Cabo Verde’s Renewable Energy Transition
Source：solarquarter
World Bank has approved US$13.30 million in concessional financing through the International Development Association (IDA) to support Cabo Verde’s Renewable Energy and Improved Utility Performance Project (REIUP), aimed at accelerating the country’s clean energy transition and achieving universal access to electricity.
The operation is co-financed by a US$1.2 million concessional loan and a US$0.41 million grant from the Canada Clean Energy and Forest Climate Facility (CCEFCF), alongside a US$0.4 million reimbursable grant from the Global Infrastructure Facility (GIF).
Cabo Verde has already achieved 98 percent electricity access, providing reliable power to nearly its entire population, and has set an ambitious target of 100 percent renewable electricity by 2040. Progress to date has been supported by sector reforms, including the demerger of the vertically integrated utility ELECTRA. However, meeting long-term targets will require additional investments in renewable generation, enhanced grid stability, and continued institutional reforms. The newly approved financing is expected to help address these needs while leveraging significant private capital for large-scale renewable deployment.
Kwawu Mensan Gaba, Energy Global Practice Manager for Western and Central Africa at the World Bank, said the expanded REIUP programme reinforces Cabo Verde’s ambition to become a continental leader in universal electricity access. He noted that mobilising private capital while strengthening institutional foundations would help ensure a financially viable, climate-resilient energy sector.
Under the project, the financing will support the development of 68 MW of new solar PV and wind capacity and 12 MWh of battery energy storage, combining public investments on smaller islands with private sector participation. It will also enable the operationalisation of a newly established, government-backed Risk Mitigation Facility, expected to mobilise up to US$108 million in private capital.
In addition, the project aims to advance universal electricity access by delivering 1,800 new household connections through last-mile electrification, while strengthening ongoing energy sector reforms. This includes building institutional capacity for newly created entities following the separation of water and power utilities, improving financial performance, operational efficiency, and reducing commercial losses.
Indira Campos, World Bank Group Resident Representative for Cabo Verde, said the operation represents an investment in a cleaner and more affordable energy future for the country. She added that the initiative would reduce dependence on imported fossil fuels, protect the economy from global price volatility, enhance competitiveness, and generate jobs linked to the energy transition, with a strong emphasis on closing the gender gap in the sector.
REIUP is aligned with Cabo Verde’s Master Plan for the Power Sector and complements ongoing efforts by other development partners, reinforcing the country’s pathway toward a sustainable, resilient, and renewable-based power system.