Cape Verde expects to save nearly twice as much on fuel by increasing its use of renewable energy

Cape Verde expects to save almost twice as much on fossil fuel imports by increasing renewable energy penetration to 31.5% by 2026, the energy minister predicted in an interview with Lusa.

“The reduction in fossil fuel imports will have a clear impact on our trade balance,” stressed Alexandre Monteiro.

The minister added that in 2023 the country saved about 1.9 billion escudos (17.1 million euros) on fossil fuel imports, equivalent to 22,790 tons.

The penetration rate of renewable energy (solar and wind) is around 20%, and the archipelago is implementing several projects to increase this figure to 31.5% by 2026.

At the same time, it expects to save 3.7 billion escudos (33.5 million euros) on fossil fuel imports, equivalent to about 43,000 tons.

“We have this contribution in the form of gradually lower costs in the future as we increase the amount of renewable energy in the system,” the government official said.

Alexandre Monteiro said the country wants to “leapfrog” in terms of renewable energy infrastructure as well as energy storage, given the intermittent sun and wind on the archipelago.

One renewable energy storage project being studied is a plant on Santiago Island, with construction expected to begin next year and operations expected to begin in 2028.

The infrastructure will have a capacity of 20 megawatts (MW) and a capacity of 160 megawatts per hour (MWh).

The plant will store excess renewable energy produced, from wind and solar, through a system of reservoirs and water pumps, and is expected to reduce fossil fuel consumption in electricity production by 22%.

“The country’s commitment is to reduce its dependence on oil,” Monteiro stressed, adding that Cape Verde currently has the capacity to store 52 MW of renewable energy and about 30 MW is in the installation phase.

“The projects being implemented will allow the country to reach 2026 with a renewable energy penetration level of over 30%,” the minister predicted, indicating that the goal is to reach 50% by 2030 and approach 100% in 2040.

However, there are critical voices in the country that say that reaching 100% is practically impossible due to the need to guarantee an alternative, to which the minister responds that this option can also be with clean energy.

“After 2030, we will have green hydrogen, for example, a clean fuel that can be used in heat engines instead of fossil fuels,” he said.

“So nothing is impossible, just let technological development allow the country to adopt the best solutions it currently offers,” said Alexandre Monteiro.