ADFD and IRENA to fund renewable energy projects
$41m in financing for renewable energy projects in six countries
According to a report in Arab News, the International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) will provide more than $41m in concessional loans for renewable energy projects in Ecuador, Sierra Leone, the Maldives, Mauritania, Samoa and Mali.
The projects, which have a combined total capacity of 35MW, will provide energy to over 300,000 people and numerous businesses.
The selected works consist of a hydro project in Ecuador, a waste-to-energy project in the Maldives, a connected solar PV project in Sierra Leone, hybrid solar PV diesel mini-grids in Mali, biomass gasification and biodiesel plants in Samoa, and wind energy projects in Mauritania.
“IRENA and ADFD selected projects bring power to isolated off-grid populations; in some cases, for the first time,” said Adnan Z. Amin, director-general, IRENA. “This will stimulate local economic development and raise living standards.”
“Financing is one of the key issues renewable energy is facing, particularly in the developing world,” Amin added. “That is why IRENA and ADFD teamed up to de-risk investments in promising renewable projects.”
With the UAE government having committed a total of $350m in concessional loans through ADFD to support the deployment and sustainable use of all forms of renewable energy in development cycles, the current financing cycle is the first of seven.
While IRENA assesses the socio-economic impact and technical merit of the projects, ADFD makes its selection based on the agency’s recommendation.
"We aim to help communities in developing countries achieve highest levels of progress,” said said Mohammed Saif Al Suwaidi, director-general, ADFD. “We hope to be a partner and strong contributor in achieving sustainable development through offering concessional loans and administering government grants to finance development projects that affect vital sectors including renewable energy; an important pillar to achieving sustainable development.”
"We launched this initiative to finance up to 50% of each project in order to allow for the remainder to be financed by banks, international financial institutions and other development partners,” Al-Suwaidi explained. “This will mobilise the financing required from the private and public sectors, and help build local financial markets and create valuable know-how for the future.”