Cabo Verde - Renewable Energy and Improved Utility Performance Project : Additional Financing

Overview & Synopsis

The objectives of the Additional Financing of the Renewable Energy and Improved Utility Performance Project are to (i) increase renewable energy generation; and (ii) improve the performance of the electricity utility in Cabo Verde by leveraging private finance. The AF will sustain the energy sector reform, the energy transition and the universal access to electricity goals in line with the M300 initiative launched by the World Bank Group (WBG) and the African Development Bank. The AF will support (i) the scale-up of REIUP activities to enhance development impact; (ii) the financing of a cost overrun under the parent project; and (iii) the restructuring of the parent project with the addition of new activities and revision of the closing date of the parent project. The AF will finance the following activities: (i) under component 1 (renamed): renewable energy development and access to efficient electricity service, scaling up public investments for increasing Variable Renewable Energy (VRE) in the energy mix, Battery Energy Storage System (BESS) for system stability, and cost overrun for BESS under Sub-component 1.1. variable renewable energy integration (renamed); (ii) adding new sub-component 1.3. Risk Mitigation Facility for Renewable Energy (RE) and BESS with private sector participation, and sub-component 1.4. Universal Access to Electricity; and (iii) scaling up the support for the ongoing energy sector reform, project implementation and technical assistance under component 2: advisory services for electricity sector restructuring and privatization, and component 3: project implementation support and technical assistance, respectively.