Cape Verde secures additional funding of almost 15 million dollars to speed up energy transition
The government has approved a set of additional financing agreements worth a total of approximately 15 million US dollars to strengthen the Renewable Energy and Improved Energy Efficiency in Public Services Project in Cape Verde, in order to increase the penetration of renewable energies, reduce dependence on imported fossil fuels and guarantee universal access to electricity by 2030.
The announcement was made today by the Minister of Finance, Olavo Correia, through a post on his official Facebook page, where he argued that the project aims to strengthen the economic environment, contributing to a more diversified economy, with greater fiscal and macroeconomic resilience and more solid foundations for the growth of the private sector.
According to the government official, increasing the share of renewable energies will reduce the country's vulnerability to the volatility of imported fossil fuel prices, as well as helping to reduce the price of electricity, making Cape Verde more competitive.
The additional funding will enable the project to achieve the goals set by the government, namely reaching 50% penetration of renewable energies by 2030 and consolidating the reform of the energy sector.
The Additional Financing Agreement with the IDA provides for the granting of credits in the total estimated amount of nine million nine hundred thousand Special Drawing Rights (DES 9,900,000), of which DES 7,400,000, equivalent to around 10 million US dollars, in the form of credit from the IDA, and DES 2,500,000, approximately 3.3 million dollars, through the Scale-up Window - Shorter Maturity Loan.
According to Olavo Correia, the resources are intended to support additional funding for the project, allowing for the expansion of REIUP's activities in order to boost its impact on development, as well as the implementation of new actions aimed at universal access to electricity and the integration of renewable energies, with the involvement of the private sector.
At the same time, an Additional Financing Agreement was signed between Cape Verde and the IBRD, as administrator of the Single Donor Trust Fund of the Canada Clean Energy and Forest Climate Facility (CCEFCF), for an estimated amount of 1.2 million US dollars.
This funding is aimed at increasing renewable energy capacity and battery storage on small islands, as well as technical assistance and support for project implementation.
An Additional Grant Agreement was also signed with the IBRD, as Technical Partner of the Global Infrastructure Facility (GIF), for an amount of around 400,000 dollars, aimed at developing renewable energies with private sector participation.
Photo: depositphotos
