Abu Dhabi Fund for Development has allocated approximately $105 million for eight renewable energy projects under the seventh cycle of its partnership with the International Renewable Energy Agency (IRENA).
Courtesy of IRENA
The announcement marks a record level of funding for any cycle since the facility was launched and will provide funding for eight projects in Antigua and Barbuda, Burkina Faso, Chad, Cuba, the Maldives, Nepal, Saint Lucia and Saint Vincent and the Grenadines. The announcement made during the 10th IRENA Assembly brings cumulative funding to date to $350 million, in line with the commitment made by ADFD across seven funding cycles to IRENA recommended projects.
The facility supports developing countries in securing low-cost capital for renewable energy projects to increase energy access, improve livelihoods and advance sustainable development on the ground.
Speaking on the occasion, Mohammed Saif Al Suwaidi, director general of ADFD, said, “In cooperation with IRENA, ADFD is proud to have supported the deployment of renewable energy solutions worldwide over several years.”
Francesco La Camera, director-general of IRENA, added, “Overcoming investment needs for energy transformation infrastructure is one of the most notable barriers to the achievement of national goals. Therefore, the provision of capital to support the adoption of renewable energy is key to low-carbon sustainable economic development and plays a central role in bringing about positive social outcomes.”
In Antigua and Barbuda, an 8 MW hybrid power plant (solar and wind) will receive an ADFD investment of $15 million. The project is expected to benefit 5,500 households and allows for large reductions in the import of fossil fuels.
In Burkina Faso, $5.5 million will contribute to the construction of a 3 MW solar PV power plant in the country. The project is expected to extend electricity to approximately 40,000 people in rural areas.
In Chad, the loan of $15 million will contribute to the construction of a six MW solar power plant. The project is expected to benefit more than 215,000 people in six cities.
In Cuba, a project will receive a loan of $20 million to install 8.5 MW of solar PV capacity, supported with 2 MW of energy storage, in Isla de la Juventud.
In the Maldives, a waste-to-energy plant project in the city of Addu will receive an ADFD loan of $14 million. The 1.5 MW renewable energy project will utilize waste in generating electricity and reduce dependence on imported fuel benefitting around 35,000 people.
In Nepal, a project will receive an ADFD loan of $10 million to support a total of 20 biogas digesters which will serve as demonstration units to 270 municipalities. The digesters will convert organic waste into useful energy and offset the use of fossil fuels by replacing it with renewable natural gas.
In Saint Lucia , the 10 MW Troumassee solar power station, battery storage and setting up solar energy systems in the country, will receive a loan of $15 million. The venture will support the whole population, economic development, advance the implementation of Saint Lucia's national energy policy and reduce diesel fuel consumption.
In Saint Vincent and the Grenadines, a loan of $10 million will support the installation of a 7 MW solar PV project and benefit around 2,444 households. The renewable energy venture aims to reduce carbon emissions, fossil fuel consumption and operating costs.
Since the first cycle selection of projects in 2014, ADFD has successfully funded 32 renewable energy projects across the world, covering up to 50 percent of the total project costs. Spanning Asia, Africa, Latin America and Small Island Developing States, the projects encompass a broad spectrum of renewable energy sources – wind, solar, hydro, geothermal and biomass – and technologies.