ADFD earmarks $15m for a project in the Caribbean
Antigua and Barbuda is one of the third funding cycle recipients of ADFD/ International Renewable Energy Agency (IRENA) project facility
Abu Dhabi Fund for Development (ADFD) inked a $15m (AED55m) concessionary loan agreement for the development of a new hybrid solar and wind generation project in the Caribbean state of Antigua and Barbuda.
Antigua and Barbuda is one of the third funding cycle recipients of ADFD/ International Renewable Energy Agency (IRENA) project facility, according to state news agency, WAM.
The loan agreement was signed during the seventh session of the IRENA Assembly by Mohammed Saif Al Suwaidi, director-general of ADFD, and Gaston Browne, prime minister of Antigua and Barbuda.
The initial 10MW project, rising to 25MW in subsequent phases, will bring clean energy to 90,000 people with a focus on providing energy for the operation of drinking water desalination plants, health and other essential facilities.
Mohammed Al Suwaidi, said: "Addressing the funding and skills gap in fast emerging economies like Antigua and Barbuda are crucial in accelerating the uptake of renewable energy solutions that can support sustainable socio-economic development in the long-term.
“We are proud to be able to play our part in this islands’ development story and look forward to further collaboration opportunities."
He added: "The project will play a major part in the country’s 20% target for renewable sources by 2018 and will support the country’s work towards meeting its sustainable development goals."
"Prior to 2016, Antigua and Barbuda [was] totally dependent on fossil fuels for electricity generation," said Gaston Browne, Prime Minister of Antigua and Barbuda.
"Using renewable energy will diversify the energy sources for the country whilst actively moving towards more reliable and affordable electricity.”
The project is being funded as part of the $350m (AED1.28bn) IRENA/ ADFD project facility, made operational in 2013, to provide concessional financing for renewable energy projects in developing countries.
Since 2013, through the IRENA/ ADFD project facility, $189m has been allocated to 19 projects, selected projects thus far have included off-grid, mini-grid, and on-grid projects using wind, solar, hydro, geothermal, and biomass sources.
Projects over the first four cycles will bring about 100MW of renewable energy capacity online.