The World Bank has approved $13.3 million in concessional financing through the International Development Association (IDA) for Cabo Verde’s Renewable Energy and Improved Utility Performance Project (REIUP). The operation is co-financed by a $1.2 million concessional loan and $0.41 million grant from the Canada Clean Energy and Forest Climate Facility (CCEFCF), along with a $0.4 million reimbursable grant from the Global Infrastructure Facility (GIF). This funding aims to accelerate Cabo Verde’s clean energy transition and achieve universal electricity access.
Cabo Verde has already achieved 98% energy access, providing reliable electricity to nearly the entire population. The country is targeting 100% renewable electricity by 2040, supported by ongoing sector reforms. Meeting these goals requires further investment in clean power, improved grid stability, and continued utility reforms following the demerger of the vertically integrated utility ELECTRA. The approved financing supports these priorities and is expected to mobilize private capital for large-scale renewable energy projects.
REIUP will increase renewable energy generation by supporting the development of 68 MW of new solar PV and wind capacity and 12 MWh of battery storage through public investment on smaller islands and private sector participation. The project also operationalizes a government-backed Risk Mitigation Facility, expected to leverage $108 million in private capital.
The program will advance universal electricity access by adding 1,800 household connections and completing last-mile electrification, while strengthening institutional capacity and consolidating ongoing sector reforms. This includes improving the financial and operational performance of newly created entities resulting from the separation of water and power utilities, reducing commercial losses, and enhancing efficiency.
According to World Bank representatives, the project will help Cabo Verde build a cleaner, more affordable energy system, reduce dependence on imported fossil fuels, shield the economy from global price volatility, and enhance competitiveness. It is also expected to generate jobs in the energy transition, with a focus on closing the gender gap in the sector.
REIUP aligns with Cabo Verde’s Master Plan for the Power Sector and complements the efforts of other development partners, reinforcing the country’s path toward a sustainable, climate-resilient, and inclusive energy future.
