Cabo Verde on the path to energy sustainability

As Cabo Verde advances towards a more sustainable and resilient energy system, Luxembourg Cooperation is contributing to this transition through the technical studies underpinning the development of the Santiago Pumped Storage project, a flagship investment designed to boost renewable energy integration and strengthen national energy security. This commitment was underscored during a workshop held on 6 November 2025, where the results of the Environmental and Social Impact Assessment – supported by the Energy transition support programme – were presented to local communities and key stakeholders.

Cabo Verde is moving steadily towards energy sustainability with the Santiago Pumped Storage project, which will be built in Chã Gonçalves, in the municipality of Ribeira Grande de Santiago, on the island of Santiago. This infrastructure will significantly increase energy storage capacity, enabling the country to enhance its electricity production capacity through renewable sources, ensure greater energy independence and security, and adapt to climate change.

With 20 MW of installed capacity and 179 MWh of energy storage capacity, Santiago Pumped Storage is a pioneering and strategic project in Cabo Verde, aligned with national efforts to achieve ambitious clean energy production targets.

The infrastructure will operate through 2 reservoirs, with capacities of 396,000 and 353,000 m3 of water, which will allow surplus wind and solar energy to be stored through a pumping system. This mechanism is expected to reduce fossil fuel consumption in electricity production by around 22%. In addition, there are plans to build a desalination plant with a capacity to produce 1,000 m3 of water per day, compensating for losses due to evaporation. A new 60 kV high-voltage line and 2 substations will also be built, enabling the storage plant to be connected to the electricity system on the island of Santiago.

The plant will enable large amounts of energy from the sun and wind to be stored, ensuring continuity of supply even during periods without wind or solar radiation. The infrastructure will thus complement the production of existing wind and solar farms and others already under expansion on the island of Santiago, creating a more efficient, stable and balanced electricity system.

The implementation of the project is based on several studies that have been carried out since 2011, which have taken environmental and social constraints into account. These culminated in the completion of the Environmental and Social Impact Assessment (ESIA), including fieldwork carried out in 2024.

On 6 November 2025, the National Directorate for Industry, Trade and Energy, with the support of the Energy transition support programme funded by the Luxembourg Development Cooperation, held a workshop at the Ribeira Grande de Santiago Cultural Centre to present and share the results contained in the ESIA. 

The session was attended by representatives from the communities of Chã Gonçalves and Beatriz Pereira, the City Council, the National Directorate for the Environment, the National Institute of Public Health, and the Institute of Cultural Heritage, among other stakeholders and institutions involved in the process.

The study concluded that the project is environmentally and socially viable, provided that the proposed measures are rigorously implemented and monitored, namely:

• implementation of the stakeholder engagement plan, including a complaints management mechanism (also referred to as Grievance Redress Mechanism);
• livelihoods restoration plan;
• access, fencing and other safety measures to prevent unauthorised and unsafe access to hazardous areas;
• noise and vibration management to avoid disturbing residents, as well as the prevention of electrocution and bird collisions with power lines;
• emergency response plan;
• recruitment plan, worker complaint mechanism and a code of conduct for compliance with environmental, social, health and safety requirements, and prevention of gender-based violence and sexual violence against children, young people and women, among other mitigation measures.

The Minister of Industry, Trade and Energy, Alexandre MONTEIRO, who chaired the workshop, stated that the Santiago Pumped Storage project represents « the symbol of Cabo Verde's energy future, based on sustainability, innovation and energy independence ». He also highlighted that the ESIA study reinforces the country's commitment to national and international best practices in the awarding and implementation of large energy infrastructure, promoting not only compliance with environmental and social standards, but also dialogue with all stakeholders on the relevance of this investment for the national energy future. In addition to the environmental benefits, the project will have significant economic and social impacts, including the creation of direct and indirect jobs during the construction phase, the boosting of local economic activities and the revitalisation of the municipality of Ribeira Grande de Santiago. Direct social benefits are also expected, such as the possibility of strengthening the supply of desalinated water to neighbouring communities and urban and housing redevelopment initiatives in the two communities closest to the project.

With the Santiago Pumped Storage project, Cabo Verde is taking a decisive step towards achieving more than 50% renewable energy penetration by 2030, a target set out in the 2018–2040 Electricity Sector Master Plan. In addition to increasing production capacity, the project will contribute to the resilience and stability of the national electricity system.

Part of the Global Gateway Facility package, the project represents an investment of EUR 79 million and has the support of Luxembourg Cooperation in the development of key technical and complementary studies, including the preparation of the tender specifications for the construction. Work will begin in 2026, with the operational phase scheduled to start in 2029, with the aim of increasing the share of renewable energy and injecting 7% into the national grid and 18% into the Santiago Island grid.

The Energy transition support programme is financed by the Grand Duchy of Luxembourg and Cabo Verde, and implemented by LuxDev, the Luxembourg Development Cooperation Agency.