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.

ALSO READ: ADB to provide $13.8m to support Vietnam’s rooftop solar sector

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.