The Asian Development Bank (ADB) and the Government of Maldives have signed loan and grant agreements of up to $50.5 million to expand renewable energy generation and distribution in Maldives on January 03, 2024.
ADB Deputy Director General for South Asia Cindy Malvicini and Finance Minister Mohamed Shafeeq signed the agreements at the Ministry of Finance for the Accelerating Sustainable System Development Using Renewable Energy (ASSURE) Project. Climate Change, Environment, and Energy Minister Thoriq Ibrahim and Japan’s Ambassador to Maldives Midori Takeuchi participated in the ceremony.
“The project is designed to enhance energy security and facilitate the sustainable transition of the power sector in the Maldives through strategic capital-intensive investments in energy storage and related technologies—supporting scalable investments and preparedness of island grids for heightened renewable energy integration and private sector investment in renewable energy on the outer islands,” said Ms. Malvicini. “ADB recognizes and appreciates the collaborative synergy that has been fostered through this partnership, underscoring the collective determination to propel the Maldives toward a more resilient, green, and energy-efficient future.”
The ASSURE project will install grid-scale energy storage, energy management systems, and distribution grid upgrades in 20 outer islands, to attract private sector investments to establish solar photovoltaic facilities in these areas. Emerging technologies, such as ocean-based floating solar panels, ocean energy devices, small wind turbines, and flow batteries, will be installed. ADB will also provide support through transaction advisory in developing public–private partnerships for solar-independent power producer projects.
The project will also strengthen the capacity of the Ministry of Environment, Climate Change, and Technology, as well as other related agencies. This includes enhancing skills in financial management and the design and implementation of emerging renewable energy systems and technologies.
“During the high-level segment of COP28, President Mohamed Muizzu announced the government’s target to produce 33% of electricity in Maldives within 5 years from renewable energy sources with support from international partners,” said Mr. Ibrahim. “The loan agreement that we signed today is a testament to the ADB’s contribution to our country. It will greatly contribute to achieving the renewable energy targets of this government.”
Source: IBP