The contract titled “‘Repowering’ of the Palmarejo Photovoltaic Plant” plans to increase the maximum capacity from the current 4.4 megawatts to 10 megawatts — a capability equivalent to supplying energy to between 20,000 and 25,000 residents.
The project involves the “systematic and complete replacement of existing solar panels with more modern and efficient models,” a source from the Ministry of Energy explained.
This is the “first project funded by the Climate and Environmental Fund,” they added, a fund approved by the Cape Verdean parliament in July 2024, initially based on 12.5 million euros, later increased, converted from debt to Portugal.
The fund aims to “mobilize and accelerate investments with significant climatic and environmental impact” by reducing the volume of greenhouse gases emitted.
Hence, the new fund’s money can finance projects in renewable energies, energy efficiency, agriculture, fisheries, or transportation, among others.
The Cape Verdean government has cited the agreement with Portugal as an example to attract other partners to the same type of mechanism.
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 horizon until 2030.
