Renewable generation, biofuels, electric mobility and new developments

“Em Perspectiva” is ALER’s new opinion and analysis series, where the latest developments, trends, and debates shaping the energy sector in Portuguese-speaking countries are examined.

In this edition, Isabel Cancela de Abreu (Executive Director of ALER) highlights the main updates of the month: the tariff reduction in Cabo Verde, progress on the Biofuels Strategy in Angola, advancements in electric mobility in Mozambique and recent developments in São Tomé and Príncipe.

The conversation that gave rise to this article is also available in podcast format on Spotify.

Isabel, Cabo Verde is once again in the spotlight this month. How do you interpret the most recent news?

These developments follow a series of energy sector inaugurations in Cabo Verde, which show that the country is not only on track to meet, but to surpass, its renewable energy targets. The Minister of Industry, Trade and Energy expands on this vision in the February Newsletter editorial.

Cabo Verde once again demonstrates a unique position: it is a small, insular country, without fossil resources, yet it has managed to strengthen its energy independence and position itself at the forefront of the African energy transition. This is why I strongly identified with the words of Electra’s new Chairman, João Spencer, when he said that Cabo Verde is “not just following, but leading the energy transition in Africa”. At ALER we have long argued that Cabo Verde could – and should – take on greater regional and international prominence, given its concrete results.

I was also pleased by his reference to the “Djunta Mon” spirit, which aligns closely with the editorial I wrote last month on the Lusophone Energy Mutirão we have been promoting – and to which Cabo Verde contributes significantly.

And this contribution goes far beyond energy, doesn’t it?

Absolutely. These advances are more than energy – they translate into very concrete economic and social impacts.

There is an immediate effect on tariffs: this is the second consecutive year of reduction, bringing the current tariff to 27% below the 2024 level. The Prime Minister of Cabo Verde has publicly recognised that investment in renewable energy is a cheaper, cleaner and decisive alternative to reduce energy costs and dependence on fossil fuels. This has a direct impact on families and businesses, with benefits for the entire economy.

There is also a significant social impact, highlighted by Jânio Santos from our associate APP in the “Mais Que Promover, Elevar” section. Cabo Verde has genuine success stories that deserve wider international visibility.

One such example – the micro‑generation case study – was included in the Africa Market Outlook, recently launched by the Global Solar Council during Intersolar Africa.

Could you briefly explain what this case study consists of?

The case analyses the Interest Rate Subsidy Programme for Renewable Energy Micro‑Production. It shows how a combination of administrative and financial measures successfully engaged commercial banks and mobilised investment from households and small businesses in decentralised renewable generation.

The programme has been in place for three years, was renewed in the 2026 State Budget, and has already allowed Cabo Verde to surpass ahead of schedule the micro‑generation target initially set for 2030 – an unequivocal success.

We also contributed with an article on Mission 300, one of the most ambitious ongoing cooperation initiatives in Africa, led by the World Bank and the African Development Bank. Its objective is to provide electricity access to more than 300 million Africans currently without power. Mozambique and São Tomé and Príncipe have already drafted their energy compacts; Angola and Guinea‑Bissau are now doing the same. In the article, we emphasise the importance of a “common language” to ensure coordination between policies, planning and investment.

This month also saw the launch of the 4th edition of the Energia e Clima na CPLP Magazine. What are the main highlights?

It is a publication we are very proud of – and one I highly recommend to anyone who hasn’t yet had the chance to read it. The magazine provides an excellent overview of our most recent activities, particularly in the context of the CPLP’s Thematic Commission on Energy and Climate, and brings together articles by leading experts.

This edition, which offers a post‑COP30 reflection, includes contributions from the Office of the Minister of Environment and Energy of Portugal, the NDC Partnership, the International Energy Agency and the Lusophone Transparency Initiative.

I encourage everyone to read it – and, of course, anyone wishing to contribute to future editions is very welcome to contact us.

There were also developments in biofuels in Angola and electric mobility in Mozambique. What do these reveal about the energy transition in the transport sector?

We chose to highlight these topics precisely because they show that the energy transition is transversal – it goes far beyond the electricity system. The transport and industrial sectors are among the largest emitters of greenhouse gases, making intervention in these areas essential.

In Angola, the Biofuels Strategy and upcoming legislation point to profound changes – it is estimated that they could generate around 2 million jobs by 2050, revitalising local communities.

In Mozambique, the new electric mobility project combines technological innovation (electric tuk‑tuks and scooters), financial inclusion (through a dedicated local credit line) and women’s empowerment.

These developments also demonstrate the increasing commitment of the petroleum sector to the energy transition – which opens space for new collaborations and greater convergence among stakeholders. Within the 2030 Cooperation Roadmap for Energy and Climate of the CPLP, we are preparing an initiative in this field that we will announce soon.

March will also bring RENMOZ in Europe. What can we expect from the event?

We are very pleased with the strong mobilisation of the Government of Mozambique, which will be represented at the highest level – including His Excellency the President of the Republic. There will also be participation from MIREME, EDM, FUNAE, HCB, the Mphanda Nkuwa Project Office, ARENE and APIEX.

We expect more than 150 participants, with significant representation from investors and financiers.

A key highlight will be the first‑ever presentation of a comprehensive pipeline of energy projects: grid‑connected projects (EDM), off‑grid projects (FUNAE) and HCB and Mphanda Nkuwa projects.

Participants will have privileged access to the technical and financial details of each project, their maturity level, and the types of partners sought across the value chain. The objective is to facilitate effective matchmaking between opportunities and investors, making this a highly business‑oriented event.

São Tomé and Príncipe is also back in the news. How is the energy transition progressing in the country?

The country has been facing an energy crisis for more than six months. To ensure immediate supply, the Government resorted to diesel generators – a short‑term measure.

However, its commitment to the transition remains. Works are underway for a 30 MW solar photovoltaic park in Água Casada, with the first lot – an 11 MW Scatec plant – expected to be completed by the end of October. The site is prepared to accommodate an additional 20 MW in future projects.

This development will mark a new phase of the transition, enabling renewable energy – solar and hydro – gradually to replace fossil‑fuel‑based generation.

The country has also presented its National Investment Plan for Sustainable Energy (PNIES), which estimates investment needs at around USD 2.7 billion by 2050. ALER is already working with the Government of São Tomé and Príncipe to support the mobilisation of this financing.