ADFD clears $25m for solar PV projects

(1/14/2018 5:43:00 AM)

Abu Dhabi Fund for Development, ADFD, the leading national entity for development aid, and the International Renewable Energy Agency, IRENA, the global platform for international cooperation on renewable energy, have announced that $25 million in concessional loans from ADFD have been earmarked for two solar PV projects, one each in Mauritius and Rwanda.

Announced at the eighth session of the IRENA Assembly, both projects — beneficiaries of the fifth funding cycle — are being financed through the IRENA-ADFD Project Facility. Established in 2013, this seven-cycle Facility offers $350 million in concessional loans from ADFD to help developing countries access low-cost capital for renewable energy projects.

The projects have the potential to significantly transform the lives of over 2.5 million people and alleviate poverty by bringing affordable energy to low-income communities. Renewable energy can positively impact the whole sustainable development spectrum in terms of improved health and education outcomes, better livelihoods and working conditions, and lower air pollution. The loans cover up to 50 per cent of project costs, leveraging additional funding from other sources. Since 2014, ADFD has allocated $214 million to 21 projects, attracting over $420 million in additional co-financing from governments and development funds.

“For developing countries, renewable energy is a triple win: it provides a cost-effective means of providing electricity to families, fuels economic growth, and supports energy independence and security,” said IRENA Director-General, Adnan Z. Amin. “However, many developing countries have trouble accessing financing for renewable energy investment. We are delighted that our continued partnership with ADFD will provide a stable, low-cost source of financing to help Mauritius and Rwanda achieve a sustainable energy future.”

Mohammed Saif Al Suwaidi, Director-General of ADFD, said, “Our collaboration with IRENA articulates ADFD’s core mandate to support sustainable economic and social progress across developing countries through financing development projects that serve vital economic sectors. ADFD priorities renewable energy as a catalyst for inclusive economic and social development.”

The Gulf Today