Abu Dhabi Fund Commits $50 Million for IRENA-Recommended Renewable Projects
The fund will provide financing to renewable projects in developing countries
The Abu Dhabi Fund for Development (ADFD) has committed $50 million for renewable energy projects that are recommended by International Renewable Energy Agency (IRENA). The ADFD and IRENA have invited applications for more than $50 million in funding through the IRENA-ADFD project facility. This will be the sixth year of funding for such projects.
The projects selected for the sixth funding cycle will be announced in January 2019.
The ADFD-financed initiative is available to government-guaranteed renewable energy projects in developing countries that seek to increase energy access, improve livelihoods, and advance sustainable development.
Renewable energy projects submitted by ministries, public utility entities, and rural electrification agencies have a better chance of availing this loan.
“Renewable energy can have a powerful impact on the livelihoods of people across the globe. It is the most cost-competitive option to expand access to energy and improve socioeconomic welfare while creating jobs and empowering local communities. Now in its seventh funding cycle, the IRENA-ADFD project facility has a proven track record of driving positive change through renewable energy deployment, supporting developing countries to benefit from the energy transformation,” said IRENA Director General Adnan Z. Amin in a press statement.
ADFD has committed $350 million (AED 1.285 billion) in concessionary loans over seven annual funding cycles to renewable energy projects recommended by IRENA. In the first five cycles, the IRENA-ADFD project facility allocated $214 million to 21 renewable energy projects across the globe, covering up to 50 percent of the project costs.
Mercom recently reported that ADFD will provide a concessional loan worth $25 million for the development of two solar photovoltaic (PV) projects in Mauritius and Rwanda.