2 of May 2023

The contribution of micro-production to Cape Verde's energy transition

Cape Verde continues to take firm steps towards energy sustainability. With a holistic approach and supported by a favorable legal and regulatory framework, the country has made important advances in the implementation of its National Program for Energy Sustainability whose strategy is to transition to a safe, efficient and sustainable energy sector, reducing dependence on fossil fuels and ensuring universal access and energy security.


One of the fundamental components of this strategy is to take advantage of the country's potential in Renewable Energies to reduce dependence on fossil fuels, reduce the energy bill and increase the population's access rate to electricity, mainly in isolated communities, in which the contribution of Micro-production stands out.


Effectively, the solutions of distributed energy generation and, in particular, of Microproduction contribute to the empowerment of families, to increase the competitiveness of companies, promote employment and employability and foster social inclusion, equality and gender equity in energy access.


The Renewable Energy Microproduction market, has gained a new dynamic with the adjustments made in 2018 to Decree-Law Nº 1/2011 which regulates the exercise of the production of energy based on renewable sources. The relaxation of the eligibility criteria for connection to the grid, the introduction of greater equity between the remuneration expectations of microproducers and the simplification of procedures for installations with installed power of up to 400 W, have provided conditions for harnessing the potential of this market, which currently has an installed capacity of 8 MWp and, in 2022, produced about 9 GWh of energy.


An ambitious programme for the massification of Renewable Energy Micro-production in Cape Verde's public buildings is underway, and in this first phase it will benefit Secondary Schools, City Councils and Health Centres, with the installation of photovoltaic systems.


The Strategic Plan for Sustainable Development - 2022/2026 (PEDS II) will also promote the construction of mini-grids based on Renewable Energy and support the acquisition and installation of solar photovoltaic kits for vulnerable families and in remote locations, so that the country can achieve a 100% rate of access to electricity by 2026.


In addition to the various financial, customs and tax incentives that the country already grants for the promotion of the energy transition, the Government will subsidise by 50% the interest on credits contracted by families and by micro and small companies, legally constituted, for the acquisition of equipment and installation services for the micro-production of renewable energy.


Finally, it should be mentioned that this year the country will host important events where the issue of energy will play a prominent role. In the end of April, the International Partners Conference under the theme "Driving Change and Accelerating Development", which had as one of its objectives the presentation of PEDS II, on the island of Boa Vista, on April 27th and 28th. ALER's General Assembly was held on May 4th in Praia.


In October, the country will host the 8th edition of the ECOWAS Sustainable Energy Forum (ESEF) 2023, organised by the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE), which will be held in parallel with the 4th edition of the International Fair for Renewable Energy and Energy Efficiency (FIEREE) organised by the Cape Verde International Fair (FIC S.A.).


Carlos Monteiro, Energy Sector Director


For more information on the energy sector in Cape Verde, we invite you to visit the website www.portalenergia.cv