The investment of 6.8 million euros is set to be implemented by a consortium of companies, Águas de Ponta Preta from Cape Verde and Resul from Portugal.
According to the Minister of Industry, Commerce, and Energy, Alexandre Monteiro, the investment aims to enhance “energy security,” “environmental sustainability,” and provide “economic benefits” to consumers.
The minister reaffirmed Cape Verde’s goal to have 50% of its electricity generated from renewable sources by 2030, thus reducing dependency on fuels.
The maximum capacity of the Palmarejo Photovoltaic Plant will increase from the current 4.4 megawatts to 10 megawatts, a capacity sufficient to supply 20,000 to 25,000 residents.
The process will involve dismantling the current plant, a task projected to take six months.
This will be followed by the installation of more modern and efficient solar panels over a nine-month period.
This marks the first project funded by the Climate and Environmental Fund, approved by the Cape Verde parliament in July 2024, originated from 12.5 million euros converted from debt to Portugal.
The fund aims to “mobilize and accelerate investments with significant climate and environmental impact” by reducing greenhouse gas emissions.
In essence, the new fund can support projects in renewable energy, energy efficiency, agriculture, fisheries, or transportation, among others.
The Cape Verdean government has highlighted the agreement with Portugal as an example to attract other partners for similar mechanisms.
In January, during the VII Summit between the two countries in Lisbon, the debt conversion program was expanded from the initial 12.5 million euros to 42.5 million euros, with a target until 2030.
