WASHINGTON, January 8, 2026 – The World Bank today approved concessional financing of 13.30 million dollars, through the International Development Association (IDA), for the Renewable Energy and Utility Performance Improvement Project in Cape Verde (REIUP). The operation is co-financed by a concessional loan of US$1.2 million and a grant of US$0.41 million from the Canada Clean Energy and Forest Climate Facility (CCEFCF), and by a repayable grant of US$0.4 million from the Global Infrastructure Facility (GIF). electricity.

Cape Verde has made significant progress in access to energy, reaching a coverage rate of 98% and guaranteeing reliable electricity to almost the entire population. The country has also advanced in its energy transition, with the objective of reaching 100% renewable electricity by 2040, supported by continuous reforms in the sector. Meeting national targets will require more investment in clean energy, greater grid stability and continued reforms following the separation of utility ELECTRA's integrated operations. The approved financing supports these national priorities and is expected to mobilize significant private capital for the large-scale development of renewable energy.

“The strengthening of REIUP consolidates Cape Verde's ambition to position itself as a leader in universal access to electricity in Africa. By mobilizing private capital to accelerate the energy transition and strengthen the sector's institutional foundations, the project will contribute to ensuring a sustainable, financially viable and climate resilient energy system,” said Kwawu Mensan Gaba, World Bank Global Energy Practice Manager for West and Central Africa.

The operation will:

• Increase renewable energy generation capacity by supporting the development of 68 MW of new solar photovoltaic and wind generation and 12 MWh of battery storage through public investment in smaller islands and industry participation private;

• Enable the operationalization of a newly created Risk Mitigation Facility, supported by the Government, which is expected to mobilize 108 million dollars in private capital;

• Boost Cape Verde's efforts to achieve universal access to electricity, with over 1,800 household connections and electrification of the last mile;

• Strengthen and consolidate ongoing reforms in the energy sector and institutional capacity, particularly of the new entities resulting from the separation of water and electricity services, in order to improve financial performance, operational efficiency and reduce commercial losses.

“With this new operation, we are investing in a cleaner and more accessible energy future for Cape Verde - a future that reduces dependence on imported fossil fuels, protects the economy from the volatility of global price shocks and strengthens competitiveness. At the same time, it will generate jobs in the energy transition, with a focus on reducing gender disparities in the sector”, said Indira Campos, Resident Representative of the World Bank Group in Cape Verde. sector.