Energy transition support programme

In execution

Preview

Donor(s)

Luxembourg

Implementation period

14.02.2022 - 31.12.2025

Total duration

48 months

The Energy transition support programme is funded under the Indicative Cooperation Programme “Development-Climate-Energy”, conceived as Luxembourg's response to support the socio-economic and environmental development policies and strategies of Cabo Verde during the period 2021–2025.

Cabo Verde has excellent conditions regarding renewable energy, especially wind and solar energy. The potential of ocean energy sources, geothermal and others remains to be explored. Due to the insularity and small market size of Cabo Verde, imported fossil fuels are expensive in the country, making renewable energy, which is endogenous and relatively well distributed across the islands, economically competitive.

Aligned with the sustainable development goal 7 and Cabo Verde's Energy Sector Master Plan 2018–2040, the programme has a long-term goal of universal access to clean and affordable energy. The programme foresees to transform the way energy is produced and consumed, while promoting social cohesion and inclusion as well as economic competitiveness.

Specifically, the programme:

promotes micro-generation of electricity from renewable sources;
facilitates an increase in the share of renewable energy in the electricity mix;

contributes to improving energy efficiency (in terms of energy consumption in the residential and non-residential sectors, and in terms of losses); and - strengthens sector governance.

All the islands of the archipelago will be involved, and the population of Cabo Verde as a whole will benefit.

The programme is also expected to support the Government of Cabo Verde to achieve a 25% reduction in greenhouse gas emissions by 2030, in line with the commitments made in its updated nationally determined contribution.

In continuity with the achievements of previous interventions, the capacity development strategy as a pillar of this initiative will consolidate the sectoral reform undertaken. At national level, within the framework of sector governance, the intervention will focus on the professionalisation of energy services with the National Directorate of Industry, Trade and Energy and the Multi-Sectoral Economic Regulatory Agency. Similarly, an appropriate capacity development strategy will be developed to support public and private actors. The institutional reform, including the legal and regulatory framework, recognises the private sector as the main agent of change in the energy sector.

The realisation of the right to energy, i.e. the right to access and the right to use, implies greater gender equality in the sector, social inclusion and the principle of "leaving no one behind".

Sustainable Development Goals

07. Affordable and clean energy

Budget

Total budget

EUR 12,000,000

Contribution breakdown

EUR 7,000,000

Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade

EUR 5,000,000

Ministry of the Economy

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