The African Development Bank (AfDB) has approved €19.6 million to support Cabeólica’s Phase II expansion—a landmark project integrating 13.5 MW of wind capacity and 26 MWh of BESS across four islands in Cabo Verde: Santiago, Sal, Boa Vista, and São Vicente. This builds on the success of the initial 25.5 MW wind PPP inaugurated in 2012.
📌 Financing Structure & Stakeholder Mix
- €12.6 million senior loan from AfDB
- €7 million concessional support via the Sustainable Energy Fund for Africa (SEFA)
- Public-Private ownership: Africa Finance Corporation, A.P. Moller Capital, Electra S.A., and Cabo Verdean government
🏗 Deployment & Integration
- Wind and BESS deployment in five sites
- Anchored by a 20-year PPA and storage services agreement with utility Electra S.A., offering tariffs below national thermal averages
- Battery systems to support frequency response, voltage regulation, and reduce curtailment
⚡ Impact & Sustainability
- Generation of 60+ GWh/year — displacing costly thermal energy imports
- ~50,000 tCO₂ avoided annually, strengthening climate action under Cabo Verde’s NDC
- Moves national renewable share from ~20% to ~30% by 2025, and toward 50% by 2030
📊 Financial Modelling Insights
- AfDB structuring mirrors Cabeólica 2012: 70/30 debt-equity, PPP format
- Energy storage adds value via grid services—must be quantified in model with ancillary revenue forecasts
- Modelling must include island-specific demand curves, curtailment risks, DSCR, and BESS lifecycle cost analytics
- ESG modelling should incorporate avian/fauna mitigation, environmental plans, and socio‑economic benefits
🌱 Why It Matters
- Grid resilience: BESS enhances stability and reduces reliance on oil imports
- Replicable PPP model: Demonstrates private-sector delivery of renewable and storage at national scale
- Catalytic finance: SEFA’s concessional funding lowers project cost and increases bankability
- Island-led case study: Offers structured financing roadmap for small island developing states
✅ Key Modeller Takeaways
- Model hourly yield curves, blending wind production with storage charge/discharge cycles
- Structure financing with long-term debt, equity tranches, and concessional layering
- Embed ESG compliance and mitigation cost schedules over tenor
- Include procurement of ancillary revenues, tariff stability, and FX scenario testing
Finteam 