The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) on 19 January 2014 announced approximately 41 million dollar in concessional loans for renewable energy projects in developing countries. The total combined capacity of the financed project is 35 MW and would bring reliable and sustainable power to rural communities that lack an access to modern energy services.
The loan as per the plan will be dispensed to a geographically diverse countries namely Republic of Ecuador, Maldives, Sierra Leone, Mauritania, Mali and Samoa. The two institutions IRENA and ADFD have selected the projects to isolated off-grid populations in some cases it will be for the first time.
Analysis: This local economic development will stimulate in raising the living standards, as financing is one of the key issues renewable energy is facing particularly in the developing world. This is the reason because of which, the two institutions IRENA and ADFD teamed up to de-risk investment in promising renewable projects.
The UAE government has committed a total of 350 million dollar in concessional loans through ADFD to support the deployment and sustainable use of all forms of renewable energy in developing countries. The current financing cycle is the first of seven. IRENA is assessing the socio-economic impact and technical merit of the projects, and ADFD is making its selection based on the Agency’s recommendation. Projects selected need to be transformative, innovative and replicable.
About the Abu Dhabi Fund for Development (ADFD)
Abu Dhabi Fund for Development (ADFD) was established back on 15 July 1971, as an independent subsidiary of Abu Dhabi Government, responsible for managing foreign aid. Over the years, it has established its position among the top development aid organizations worldwide.
Since its establishment, ADFD has played an important role in advancing economic development in beneficiary countries by providing concessionary loans that enable these countries to surmount challenges, address economic problems, and improve the living standards of their people.
The Fund has managed a quantum leap in its financial performance through investments and direct long-term contributions in active companies in strategic sectors of the developing countries, along with investing in a variety of financial instruments.
To date, the total grants, loans provided and managed by ADFD and UAE government reached to arround AED 60 billion for financing 363 development operations in 63 countries around the world.