The African Development Fund has approved a $24.5 million grant package for São Tomé and Príncipe as part of a $30 million investment to transform the island nation's energy landscape. The ETREEP project includes a 4 MW solar plant with 2 MWh battery storage on Príncipe Island, 40,000 prepaid meters, and 1,000 LED streetlights, targeting a 50% renewable share by 2030.
The African Development Fund has approved a $24.5 million grant package for São Tomé and Príncipe, anchoring a $30 million investment that will transform the island nation's energy landscape and accelerate its transition away from diesel power, according to an official announcement. Nearly 95% of the country's electricity generation relies on imported fossil fuels at a production cost of $0.30 per kilowatt-hour, one of the highest in Africa, with daily power outages lasting three to four hours.
The Energy Transition, Efficiency, and Expansion Project (ETREEP) is a cornerstone of São Tomé and Príncipe's National Energy Compact, committing the country to universal electrification and a 50% renewable energy share by 2030. Project components include a new 4 MW peak solar photovoltaic plant with a 2 MWh battery energy storage system on Príncipe Island, 1,000 energy-efficient LED streetlights, rehabilitation of low-voltage networks and the national dispatch centre, installation of over 40,000 prepaid electricity meters, and capacity building for the utility and ministry.
This development matters for small island energy systems, where high diesel dependence creates economic and environmental vulnerabilities. The project aims to reduce non-technical losses from 34% to 20%, raise billing and collection rates from 50% to 80%, and create 2,000 new electricity connections. Green skills training will be provided to 200 young people in solar and electrical maintenance.
For the renewable energy industry, the project demonstrates the viability of solar-plus-storage for island grids. Stakeholders including households, businesses, healthcare facilities, and schools stand to benefit from reduced outages and lower energy costs. The African Development Fund contributed $19.02 million from ADF-16 and $5.43 million from the Transition Support Facility Pillar I.
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