UNIDO-ECREEE GEF Project in Cape Verde

Based on the policy objectives of the Cape Verdean Government, UNIDO, ECREEE and the Ministry of Energy in Cape Verde are developing a    project to be co-funded by the Global Environmental Facility (GEF).
It aims at the promotion of viable, market based small to medium-scale renewable energy systems in the country.
The initiative refers to the ambitious plan of the Cape Verdean Government to reduce the country’s dependence on imported fossil fuels and reduce the GHG emissions, through increased energy production from renewable resources. Through private-sector investment and government-supported projects, Cape Verde intends to generate at least 25% of electricity from renewable sources by the year 2011 and 50% by the year 2020. Moreover, it is the intention to produce 100% of the electricity on the island of Brava from renewable sources.

The specific objective of the GEF project is to develop a market environment that will promote investments in small to medium renewable energy systems to make the country less dependent on imported fossil fuels.

The project consists of three components :

· technical feasibility and commercial viability of small to medium scale renewable energy systems is demonstrated;

· The policy and regulatory framework for the development and usage of renewable energy is strengthened;

· capacity of key market players and market enablers is increased and awareness of the benefits of renewable energy technologies is raised.

· The project expects to receive co-financing from the government of Cape Verde, local banks, multilateral agencies and private investors.
In 2010 several missions to different islands to hold stakeholder meetings and to identify possible demonstration projects were undertaken by ECREEE and UNIDO experts.
Several demonstration projects were identified on different islands. The following types of projects were considered for further implementation on the islands of Brava, Santo Antão, São Vicente, São Nicolau and Fogo:

· wind power for desalination;

· solar-diesel-wind hybrids for water pumping, ice production and electrification of isolated communities;

· PV systems for telecommunication towers;

· solar thermal warm water heating for hotels.
The project proposal iscurrently in the stage of finalization and will be validated in a  workshop The approval of the project is planned to take place in May 2011. The project is expected to be co-funded by GEF with a 1,72  million USD grant and will mobilize further co-funding from other involved partners.