Four countries in Africa and the Pacific will receive millions from Abu Dhabi to kick-start renewable energy projects, benefiting more than a quarter of a million people.
The Abu Dhabi Fund for Development (ADFD) and the International Renewable Energy Agency (Irena) awarded Dh44.5 million to the Marshall Islands, Niger, Seychelles and the Solomon Islands at the Irena General Assembly on Saturday in Abu Dhabi.
“Over seven funding cycles, our US$350m partnership, Irena/ADFD Project Facility, aims to support and enhance the developing world’s energy needs by tapping into their abundant renewable energy sources,” said Mohammed Saif Al Suwaidi, ADFD’s director general.
The concessional loans, at 1 per cent to 2 per cent interest rates for 20 years, will help projects employing solar photovoltaic (PV) solutions and solar home kits to hydropower. They will provide electricity to more than 260,000 people.
So far, the organisations have provided more than $189m for 19 projects.
“The UAE’s commitment to advancing sustainable energy transitions in countries around the world has been unwavering,” said Ali Al Shafar, the UAE’s permanent representative to Irena.
“Our renewable energy development aid has been growing significantly to more than $900m.”
An important element is that this offers a sort of guarantee for other investors who may perceive these projects and countries as high-risk. The concessional loans range from $5m to $15m per project with a five-year grace period for payment. Other investors have provided $387m in co-financing.
“This facility is also putting in place an innovative process, which supports transformational and replicable projects that can potentially bring sustainable energy to millions of people around the world,” said Adnan Amin, Irena’s director general.
lgraves@thenational.ae
Follow The National's Business section on Twitter
