The Democratic Republic of Sao Tome and Principe (STP) consists of two main volcanic islands and several islets located off the west coast of Central Africa. Príncipe is the closest island to mainland Africa and has an area of 142 km2. São Tomé, the largest island, lies further out and covers an area of 859 km². The country with a population of 204,327 in the year 2017  is divided into six districts (Agua Grande, Cantagalo, Caué, Lembá, Lobata, and Mé-Zóchi) plus the Autonomous Region of Príncipe, which has been self-governed since 1995.

Sao Tome and Principe is a lower-middle-income country. The country’s most important sector is that of services. The main economic activities are in tourism, retail, transport, communication, and construction. Agriculture and fishing are mainstays for the majority of the population, despite their modest contribution to the GDP.

As a Small Island Developing State (SIDS), the country faces specific challenges in relation to its size, remoteness from large markets, dependence on a small number of economic sectors, direct investment and remittances inflow, lack of resources and a significant trade deficit. Moreover, the country is dependent on expensive fossil fuel imports and key sectors of the economy are highly vulnerable to natural, climate, and external economic shocks.

In 2015, total electricity produced was 3 ktoe, of which 66.6 % came from fossil fuels and 33.3 % from hydro sources. Access to electricity in São Tomé and Principe was 68.60 as of 2014. The energy need is met by biomass (firewood and charcoal), which is used heavily for cooking purposes. The potential for wind is inadequate for exploitation. Average daily insolation is 5.2 kWh/m2, which implies good potential for solar energy development..