The Asian Development Bank (ADB) has approved a financing package of USD50.5 million to expand renewably energy development in the Maldives.
ADB said the package consists of USD41.5 million from the Asian Development Fund (ADF), a USD8.5 million concessional loan from ordinary capital resources and a USD500,000 grant from the Climate Change Fund.
ADF provides grants to ADB’s most vulnerable developing member countries, of which the Maldives is also listed especially following the Covid-19 pandemic-led economic impact.
“ADB has been assisting the Government of Maldives in its efforts toward energy transition and achieving its vision for the energy sector, anchored on three pillars: renewable energy, technology innovation, and energy efficiency,” said ADB Senior Energy Special Jaimes Kolantharaj.
“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.”
Under the package, ADB will support the installation of grid-scale energy storage, energy management systems, and distribution grid upgrades in 20 outer islands. This will attract private sector investments to establish rooftop, land, and floating solar photovoltaic facilities.
ADB will also provide transaction advisory support to develop public-private partnerships for solar independent power producer (IPP) projects.
The project backed by ADB aims to boost clean energy in the Asia-Pacific region.
It plans to introduce financial tools to ensure timely payments and incentivizes solar power projects. Innovative technologies like floating solar panels and ocean energy devices will be deployed, with a focus on gender inclusivity by supporting women in renewable energy jobs.
Institutions will receive capacity-building support, and co-financing of USD48 million will supplement the Maldives government’s USD1.97 million contribution.