$57m to fund five renewable energy projects in 2015 in developing countries from Argentina to Iran
Abu Dhabi: A UAE initiative now provides energy access and livelihood to over half a million people in 11 developing countries. The UAE will also fund five clean energy projects in five developing countries this year, which will benefit 280,000 people, it was announced on Sunday.
In 2014, the UAE gave $41 million (Dh150.59 million) for six clean energy projects with a combined capacity of 35 megawatt (MW). These are already benefiting more than 300,000 people in six developing nations. With this year’s funding the number of beneficiaries will go up to 580,000. Some communities will get access to electricity for the first time which, in turn, will give them access to clean drinking water from desalination plants powered by renewable energy and small hydro projects.
In 2015, the International Renewable Energy Agency (Irena) and the Abu Dhabi Fund for Development (ADFD) will give $57 million (Dh209 million) in concessional loans for five renewable energy projects with a combined capacity of 35 megawatt (MW). The projects are in a geographically diverse set of countries — Argentina, Cuba, Iran, Mauritania and St. Vincent and the Grenadines.
“Renewable energy offers the prospect of clean, affordable power to the 1.3 billion people currently off the electricity grid,” said Adnan Z. Ameen, Irena director-general, at a press conference on the sidelines of Irena’s fifth assembly.
“While renewable energy resources are abundant in many communities suffering from energy poverty, finance is still a key challenge for deployment. That is why the partnership between Irena and ADFD is so important as a pioneering effort,” he said.
This is the second loan cycle of seven, which together will commit $350 million over seven years for the deployment of renewable energy in developing countries, with a total project value of an estimated $800 million. The funds from ADFD mobilise other funds and will lead to more than double the invested amount.
The approved projects in the second cycle include solar, hydro, hybrid (wind and solar) and geothermal energy, which are innovative, potentially replicable or scalable.
Thani Al Zeyoudi, the UAE’s permanent representative to Irena, said the socio-economic benefits of the first cycle projects were already visible in the beneficiary communities.
Adel Abdullah Al Hosani, Director of Operations Department in ADFD, said his organisation aims to make a profound impact on the economies of developing countries and support the renewable energy sector as a tool for economic and social development.