EIB and AfDB Back Major Expansion of Cabo Verde’s Cabeólica Wind Project to Boost National Clean-Energy Supply

EIB and AfDB Back Major Expansion of Cabo Verde’s Cabeólica Wind Project to Boost National Clean-Energy Supply

(IN BRIEF) Cabo Verde has inaugurated new wind turbines and a major battery storage system as part of the expansion of the long-established Cabeólica renewable energy project. Supported by more than €39 million in new financing from the European Investment Bank—with co-financing from the African Development Bank—the upgrade will push the project’s contribution to national electricity production from 20% to an expected 30%. The investment, aligned with the EU’s Global Gateway initiative, aims to help the island nation reduce its heavy dependence on imported fossil fuels while improving energy security and system reliability. European technology partners including Vestas and WinPower contributed to the new installations. The initiative strengthens a decade-long partnership between international institutions and Cabo Verde and is seen as a model for scaling renewable energy in island states. Leaders from the EIB, the EU, Cabeólica, and the African Development Bank emphasized that the project integrates more clean generation, enhances grid stability, and reinforces Cabo Verde’s broader climate and economic resilience.

(PRESS RELEASE) LUXEMBOURG, 2-Dec-2025 — /EuropaWire/ — The expansion of Cabo Verde’s landmark renewable energy project has taken a major step forward, as new wind turbines and a modern battery storage system were formally inaugurated today. The development is backed by more than €39 million in fresh financing from the European Investment Bank (EIB) through EIB Global, supported by EU guarantees. The African Development Bank is co-financing the initiative, underscoring strong international support for Cabo Verde’s clean-energy ambitions.

This new investment strengthens and extends the well-known Cabeólica project — a pioneering public-private partnership launched in 2010 with an initial €28 million EIB loan. Built across four islands, the wind farms already supply around 20% of Cabo Verde’s electricity and have played a central role in shifting the country toward home-grown renewable power. With the new turbines and the addition of 26 MWh of battery storage, the project’s contribution is expected to rise to 30%, significantly reducing reliance on imported fossil fuels.

EIB Vice-President Ambroise Fayolle emphasized the strategic importance of the expansion. He highlighted that Cabeólica has long been a model for island nations seeking to harness wind resources for energy security, noting that the EIB’s continued support reflects its commitment to climate resilience and sustainable development.

Aligned with the EU’s Global Gateway framework and the second phase of the EIB Climate Bank Roadmap, the investment aims to enhance energy stability while enabling Cabo Verde to meet its renewable-energy targets. To date, around €380 million has been mobilised under Global Gateway in Cabo Verde, with a major share directed toward improving energy management, scaling renewable generation, and attracting greater private-sector participation.

EU Ambassador to Cabo Verde Sylvie Millot noted that the Phase II upgrades add 13.5 MW of capacity on Santiago and significantly expand battery storage across four islands, reinforcing system reliability for households, small businesses, and essential services. She also pointed to the strong involvement of European technology providers, including Vestas turbines and WinPower battery systems.

Cabeólica Chairman Ayotunde Anjorin said the expansion reinforces the company’s long-term commitment to delivering reliable, clean infrastructure and sets another benchmark for renewable power partnerships in sub-Saharan Africa. The African Development Bank echoed this sentiment, with Director Wale Shonibare highlighting how the combination of new wind assets and battery storage will help stabilise the grid, support low-cost renewable supply, and strengthen the country’s resilience to energy volatility.

Overall, the enhanced Cabeólica project shows how coordinated financing and technical expertise from European and African partners can accelerate the transition to cleaner, more affordable, and more secure energy systems for small island states.

Background information

About EIB Global

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world.

Photos of EIB headquarters for media use are available here.

About the Global Gateway

Global Gateway is the European initiativeto boost smart, clean and secure links in digital, energy and transport sectors and to strengthen health, education and research systems across the world. Global Gateway aims to mobilise up to €300 billion in investments through a Team Europe approach, bringing together the EU, its Member States and their financial and development institutions. It seeks a transformational impact in the digital, climate and energy, transport, health, and education and research sectors.

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SOURCE: European Investment Bank