Low interest rates a boost for renewable energy projects
ABU DHABI // The third of seven funding cycles for renewable energy projects has opened as part of a Dh1.3 billion und.
Applicants can now submit their funding request for a renewable energy technology project, said the Abu Dhabi Fund for Development (ADFD) and the International Renewable Energy Agency (Irena) on Sunday.
Countries applying through the renewable energy development facility have until February 18 to make a submission.
“We believe that the provision of renewable energy is an important and effective form of development aid,” said Mohammed Saif Al Suwaidi, ADFD’s director general. “It is important that the recipients of the aid are able to fully realise the economic and social benefits of the clean energy projects delivered.”
The fund has reduced its lending conditions to encourage developing countries to take advantage of the financing.
Successful projects will benefit from funding rates ranging between 1 and 2 per cent.
“Based on lessons learnt from the first and second cycles, we believe these new terms will significantly increase the facility’s effect and encourage developing countries to utilise this opportunity,” Mr Al Suwaidi said.
Projects approved for funding include solar, hydropower, biomass, wind energy and hybrid projects in Ecuador, Mali, the Maldives, Mauritania, Samoa and Sierra Leone. They represent a diverse mix of renewable energy sources and innovative technologies that are replicable, scalable and improve energy access in developing countries.
“The demand for concessional finance for renewable energy projects is high, as demonstrated by the more than $1.5bn [Dh5.5bn] in loans requested in the first two cycles of the Irena/ADFD facility,” said Adnan Z Amin, Irena’s director-general.
“The lower interest rates make this an even more effective platform to support innovative projects, a diverse range of technologies and a wider geographic spread of countries.”
Published: December 7, 2014 04:00 AM