Cabeólica, the landmark wind developer backed by AP Møller (the Danish conglomerate behind A.P. Moller–Maersk, active in global logistics and infrastructure investment),, has secured over €39 million in additional financing from the European Investment Bank (EIB)—through its development arm, EIB Global, and supported by EU guarantees. This financing will deliver 13.5 MW of new wind capacity on Santiago and 26 MWh of battery storage across four islands, strengthening energy security and enabling deeper renewable integration in Cabo Verde. ⚡🏝️🌱
A Major Boost to Cabo Verde’s Renewable Landscape 🌱🏝️⚡
The expansion builds on the original €28 million EIB loan from 2010, which helped establish Cabeólica as the first commercial-scale renewable PPP in sub-Saharan Africa. Today, its four wind farms already generate around 20% of the country’s electricity—a figure expected to rise to 30% with this new phase. 🌬️📈🔋
Co-financing from the African Development Bank was arranged earlier in the year, including a €12.6 million loan and €7 million concessional funding through the Sustainable Energy Fund for Africa (SEFA). These combined resources enable a resilient, clean-energy expansion for small-island systems. 🌍💶🏗️
Strategic Importance for Energy Security 🔋🏝️🌬️
Cabo Verde faces high dependence on imported fossil fuels and significant exposure to price volatility. Wind power paired with battery systems allows the islands to: 🌬️⚡🏘️
- Reduce thermal generation costs
- Improve grid stability
- Increase renewable penetration without curtailment
- Enhance reliability for households, schools, and small businesses
The project leverages Vestas turbines and WinPower’s battery system expertise, showcasing a collaborative EU–Africa model for climate-resilient infrastructure. 🤝🇪🇺🌍
Financial Modelling Perspective 📊🧮📈
For financial modellers, Cabeólica Phase II presents a strong case study for wind-plus-storage economics in island grids, including: 📉⚡🔧
- Hybrid system dispatch modelling to optimise battery cycling and wind smoothing
- Reduced LCOE through increased renewable share and reduced diesel reliance
- Revenue stability supported by long-term concession structures
- Portfolio-level IRR uplift from Phase II capex efficiency and expanded grid services
The blend of concessional funding, EIB guarantees, and AfDB debt improves the project’s weighted average cost of capital (WACC)—crucial for affordability in small island markets. 💶📉🌍
A Model for Island-State Energy Transitions 🌍⚡🌀
EIB leadership emphasised that Cabeólica remains a “game changer” for Cabo Verde’s energy transition, demonstrating how island states can leverage wind potential at scale. The initiative aligns with: 🌐📘✨
- The EU’s Global Gateway strategy
- The EIB Climate Bank Roadmap (Phase II)
- Africa’s broader push for climate-resilient energy systems
The project also encourages private-sector participation—a critical component given the investment needs of insular grids. 🏝️🤝💡
Finteam 