The new Board of Administration of ELECTRA, led by Pedro Lima da Rocha, has identified the main causes of recent power cuts in Cabo Verde as the lack of structural investments since 2015 and equipment failures at the Palmarejo power plant in Praia. The board points out that three production units are currently unavailable due to faults, reducing the plant's capacity. This situation has resulted in power cuts affecting clients across the country.
According to ELECTRA, the installed thermal capacity at Palmarejo, which is 70,800 kilowatts (kW), is only partially available, with around 45,500 kW operational, or 64.3% of the total capacity. The company states that to meet peak demand in Santiago, approximately 43,500 kW is required, but the current available capacity is insufficient. This shortage is the primary reason for the recent power cuts.
The Board of Administration also highlights a significant financial imbalance, with the company's revenues not covering its expenses, making it challenging to ensure the current needs of exploration, maintenance, and investment. ELECTRA often relies on support from the Public Treasury to guarantee fuel supplies for its power plants. The board attributes the current problems to accumulated difficulties over several years.
The new administration is working to conclude a comprehensive diagnosis of ELECTRA's technical, operational, commercial, financial, and organizational situation. This assessment will help identify the true extent of the problems and define suitable policies and measures for recovery and sustainability. The board prioritizes repairing faulty units, recovering production capacity, and restoring the electrical system's safety and reliability.
ELECTRA's Board of Administration acknowledges that the recovery process will be challenging due to the extent of the problems, lack of investments, financial limitations, and rising fuel prices. However, they are committed to addressing the challenges, setting priorities, and implementing necessary measures to progressively recover the company's operational capacity.
The board also expresses concern about the degradation of working conditions and demotivation among some employees, who lack adequate means and conditions to perform their duties. The administration considers workers essential to the recovery process and appeals to their professionalism, dedication, and sense of mission to restore the company's capacity and institutional dignity.
ELECTRA's Board of Administration has apologized to consumers for the disruptions and losses caused by the power cuts, recognizing the impacts on families, businesses, and the national economy. They assure that normalizing electricity supply is an absolute priority and request understanding and patience from the population while they work to recover production capacity and restore service quality.
Key points
- The main causes of power cuts in Cabo Verde are the lack of structural investments in ELECTRA since 2015 and equipment failures at the Palmarejo power plant.
- ELECTRA faces a significant financial imbalance, with insufficient revenues to cover expenses, and relies on support from the Public Treasury.
- The company's recovery requires not only investments and technical solutions but also a deep mobilization of its human resources.
