Page 20 - U4SSC Compendium of practices on innovative financing for smart sustainable cities projects

2 Energy - Cabeólica wind farm project (Cape Verde)

Size of investment: USD 84 million (EUR 63 million)

Start date: 2009

End date: 2011

Project stage: maintenance

Project partners

• Public partner: Government of Cape Verde
• Private partners:

o InfraCo Africa (publicly-financed privately-managed project development company)

o Africa Finance Corporation (AFC)
o African Development Bank (AfDB)

o European Investment Bank (EIB)

o FinnFund
o Electra (government-owned utility company)

Project description

The Cabeólica wind farm, set across four islands of the Cape Verde archipelago, has led the way
in wind power generation in Africa. The country suffered from power deficits and a high reliance
on oil imports prior to implementation of the wind farm. This project involved the construction and
operation of the wind farm with a total installed capacity of 25.5 MW, which became fully operational
in September 2011. Prior to the installation of the Cabeólica Wind Farm, wind farms generated
only two per cent of the country's power needs. Currently, Cabeólica supplies approximately 25
per cent of the energy needs of Cape Verde, enabling the country to diversify its energy grid and
shift away from thermal energy diesel.

The archipelago of Cape Verde has consistent wind speeds of up to 10 m/s, making it one of the
best locations in the world for wind power generation. The wind farms are capable of directly
supplying energy to the individual power grids on each of the islands, substantially reducing fuel
imports and leading to significant financial savings. The Cabeólica Wind Farm is set across four
islands: Sao Vicente, Santiago, Sal and Boa Vista. It has created an abundant source of renewable
energy that is cheaper and cleaner than previous sources relied on in Cape Verde.

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