ADB green lights $50.5m support to Maldives’ RE growth
The project includes energy storage and distribution upgrades.
The Asian Development Bank (ADB) has approved a $50.5m financing package to support the expansion of Maldives’ renewable energy capacity including wind and solar projects.
In a statement, ADB said $41.5m of the package will be from the Asian Development Fund, $8.5m will be a concessional loan from ordinary capital resources, and $500,000 is from the Climate Change Fund grant.
The amount will be used to deploy grid-scale energy storage, energy management systems, and distribution upgrades in 20 outer islands. This will drive private sector investments in rooftop, land, and floating solar projects.
ADB added that the project will also include installing emerging technologies such as ocean-based floating solar panels, ocean energy devices, small wind turbines, and flow batteries.
It added that it will provide transaction advisory support for public-private partnerships for solar independent power producer (IPP) projects. The project will introduce financial instruments to reduce payment risk and performance-based incentives for solar IPPs.
“This project directly supports energy transition by facilitating the shift away from diesel-based generation and supports the three pillars to help the country move toward a climate- and disaster-resilient clean energy source while ensuring its energy security,” ADB Senior Energy Specialist Jaimes Kolantharaj said.
ADB said the financing package will be augmented by a $48m cofinancing from the Asia-Pacific Climate Finance Fund, Clean Technology Fund, Japan Fund for the Joint Crediting Mechanism, and private sector investments.
The government, meanwhile, will provide $1.97m.