Praia,Oct 28, 2025 (Lusa) - The renovation of the solar farm in Cape Verde's capital will double electricity production, thanks to a contract signed today, the first to be financed by the debt conversion agreed with Portugal, the archipelago's government announced.

The €6.8 million investment will be carried out by a consortium formed by Águas de Ponta Preta (Cape Verde) and Resul (Portugal).

"Energy security", "environmental sustainability" and "economic benefits" for consumers are some of the advantages to be gained from the investment, said the Minister of Industry, Trade and Energy, Alexandre Monteiro.

He reaffirmed Cape Verde's goal of achieving 50% of electricity produced from renewable sources by 2030, reducing dependence on fuels.

The maximum capacity of the Palmarejo Photovoltaic Plant will rise from the current 4.4 megawatts to 10 megawatts - a capacity equivalent to supplying 20,000 to 25,000 inhabitants.

The intervention will consist of dismantling the current plant, an operation that will take six months.

This will be followed by the installation of more modern and efficient solar panels over nine months.

This is the first project to be financed by the Climate and Environment Fund, which was approved by Cape Verde's parliament in July 2024 and was funded with €12.5 million converted from the debt owed to Portugal.

The fund aims to "mobilise and accelerate investments with a relevant climate and environmental impact", through the amount of greenhouse gases that are no longer emitted.

In other words, the money from the new fund can finance renewable energy, energy efficiency, agriculture, fisheries and transport projects, among others.

Cape Verde's government has pointed to the agreement with Portugal as an example to attract other partners to a similar mechanism.

In January, during the 7th Summit between the two countries in Lisbon, the debt conversion programme was extended from the initial €12.5 million to €42.5 million, with a horizon until 2030.

LFO/ADB // ADB.

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