Sustainability Week opens with award of funds for African solar power projects
Representatives of more than 150 countries gathered in the capital yesterday as millions of dollars were made available for African solar projects on the first day of Abu Dhabi Sustainability Week .
Mauritius and Rwanda have been awarded a combined US$25 million (Dh91.8m) in concessional loans by the Abu Dhabi Fund for Development to build solar projects in low-income communities.
The loans were announced yesterday at the eighth assembly of the International Renewable Energy Agency, or Irena.
About 1,100 government and corporate officials from around the world are meeting to discuss opportunities and challenges in renewable energy.
With a loan of $10m, the Mauritian central electricity board will install solar photovoltaic (PV) systems on the roofs of 10,000 homes, bringing a new source of sustainable and lowcost energy to 35,000 people.
In Rwanda, the loan of $15m will help to fund the installation of 500,000 off-grid solar PV home systems that will provide electricity for lighting, mobile phone and radio charging.
The project is expected to improve electricity access for 2.5 million people in rural Rwanda, while creating more than 2,000 local jobs.
Both loans are for a term of 20 years and each country has been granted a five-year grace period.
“Time and time again, the UAE has demonstrated its unwavering dedication to assisting developing countries in the pursuit of their development goals through funding sectors, including renewable energy – a cornerstone and leading catalyst of sustainable long-term growth,” said Mohamed Al Suwaidi, director general of the fund.
The loans are drawn from the
Irena and Abu Dhabi Fund for Development Project Facility, a $350m pool set up by the fund in 2013 to finance renewable energy projects in developing countries that are members of Irena, which has its headquarters in Abu Dhabi.
Over the past five cycles, the fund has awarded $214m in loans to 21 renewables projects in 20 developing countries.
Forty-two countries submitted 89 proposals seeking financing. Applications for the sixth funding cycle are being accepted until February 15.
The Minister of Climate Change and Environment, Dr Thani Al Zeyoudi, addressed Irena and highlighted the local achievements that have contributed to reducing the cost of solar energy production on a global level.
“The 350-megawatt Abu Dhabi Solar Complex attracted the first record production cost bid of 2.42 US cents per kilowatt hour, while the 700-megawatt Mohammed bin Rashid Al Maktoum Solar Park in Dubai received the second record bid of 7.3 US cents,” he said.
“The third, currently unbeaten record for the world’s lowest production cost belongs to Masdar’s bid for the 300-megawatt Sakaka Solar Power Plant in Saudi Arabia at 1.79 US cents per kilowatt hour.
“Following this achievement, the UAE has decided to increase its target for the contribution of renewable energy to the national energy mix from 24 per cent to 27 per cent by 2021. The UAE Energy Plan 2050 aims to grow the proportion of clean energy to 50 per cent.
“Furthermore, the country seeks to produce 44 per cent of the clean energy from renewable sources.”
Rapid innovation and falling costs of renewable generation and storage have “spurred investments, transforming renewable energy from niche to an economically and technically preferable solution,” said Irena director general Adnan Amin, with reference to the Renewable Power Generation Costs report released yesterday.
“The shift from one energy system to another is not simple and, undoubtedly, it will take many years before the current system is transformed,” Mr Amin said.
“But the transformation is unstoppable. The developments during the past few years exceeded the expectations of even most optimistic supporters.”
Also yesterday, the Dubai Electricity and Water Authority approved its Dh26.41 billion budget for this year and a project for concentrated solar power worth Dh14.2bn.