ADFD earmarks $25m loan for two IRENA solar PV projects
Projects have the potential to significantly transform the lives of over 2.5m people
The Abu Dhabi Fund for Development (ADFD) has issued a statement announcing that it has set aside $25m in concessional loans for two solar PV projects. The projects have been recommended by the International Renewable Energy Agency (IRENA), a global platform for international cooperation on renewable energy.
First announced at the eighth session of the IRENA Assembly, both projects will be financed through the IRENA/ADFD Project Facility. One project will take shape in Mauritius, while the other will be based in Rwanda, Africa.
“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. 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,” said Adnan Z. Amin, the director-general at Irena.
In Mauritius, the $10m loan will be used to help the Central Electricity Board install solar PV systems on the rooftops of 10,000 households. The initiative is part of the government’s efforts to fight poverty, while contributing to the national target of achieving 35% of renewable electricity in the energy mix by 2025. An estimated 35,000 people in low income communities could benefit from the project.
In Rwanda, the $15m loan will enable the installation of 500,000 off-grid solar PV home systems across the country. The energy will be used for lighting, mobile phone and radio charging and is part of the government’s rural electrification strategy, which is said to be one of the most affordable payment schemes in Africa.
“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. We are confident that the latest projects selected for funding in Mauritius and Rwanda will deliver sizeable benefits for the economies of local communities,” concluded Mohammed Saif Al Suwaidi, director general at ADFD.
