The African Development Bank (AfDB) has approved a grant of $24.5 million to support the energy transition in São Tomé and Príncipe. This funding forms part of a total investment of $30 million aimed at modernising the country’s energy system and reducing its reliance on fossil fuels.

The project, known as ETREEP (Energy Transition, Efficiency and Expansion Project), will run from May 2026 to November 2031. Its main objective is to facilitate universal access to electricity and achieve 50% of electricity generation from renewable sources by 2030. The initiative will directly benefit more than 200,000 people, significantly transforming daily life on both of the country’s islands.

Currently, around 95% of the electricity in São Tomé and Príncipe comes from imported fossil fuels, which results in high costs and frequent power cuts.

The initiative includes several key measures: the installation of 1,000 LED streetlights to improve efficiency and safety; the construction of a 4 MW solar power plant with a battery storage system on the island of Príncipe; the modernisation of low-voltage electricity networks and the energy control centre; and the installation of more than 40,000 prepaid electricity meters to reduce losses and improve management.

The capacity of key institutions, such as the state-owned company EMAE and the Ministry of Infrastructure and Natural Resources, will also be strengthened through technical training and specialist support, to ensure the long-term sustainability of the improvements.

It is estimated that around 50,000 homes will benefit directly, in addition to the creation of 2,000 new electricity connections and the provision of training in renewable energy for young people. The project also aims to improve the collection of electricity payments, raising collection rates from 50% to 80%, and to reduce non-technical losses from 34% to 20%.

Read the full news at the following link.

Discover the business opportunities that the AfDB and other multilateral organizations offer to the private sector in Africa and other regions of the world. Register on our SALT web platform and we will contact you!