An important partnership which supports renewable energy projects in developing countries is offering US$50 million in its latest funding round.
The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) have officially opened the fifth round, which is part of ADFD’s $350 million commitment offering concessional loans to renewable energy projects endorsed by IRENA.
The pair have backed 15 pioneering projects in 14 countries since the initiative began in 2012, including off-grid, mini-grid and on-grid projects using wind, solar, hydro, geothermal and biomass sources.
“Many developing countries are blessed with abundant renewable energy resources, yet access to financing can still hinder development,” said IRENA Director-General Adnan Z. Amin. “IRENA’s partnership with ADFD helps overcome this challenge by offering concessional loans to quality renewable energy projects in developing countries, which then leverage additional investment. Funding from the Facility helps boost renewable energy deployment and trigger economic growth, offering sustainable and affordable energy to people with limited or no access to electricity.”
Since 2012, the IRENA/ADFD Project Facility has provided $333 million in loans. On the back of the first three cycles, more than 68 megawatts of renewable energy capacity will be brought online, improving the livelihoods of 760,000 people.
His Excellency Mohammed Saif Al Suwaidi, Director-General of ADFD added: “The IRENA/ADFD Project Facility is a pioneering partnership that supports the developing world’s energy needs by tapping into their abundant renewable energy sources. Selected projects have the potential to improve the livelihoods of millions of people by facilitating sustainable economic growth, bolstering energy security and expanding energy access. This collaboration with IRENA exemplifies our core business of partnerships and alliances to drive advancements in all key economy sectors, especially the renewable energy sector, which will guarantee a long-term, sustainable and environmentally conscious future. At ADFD, our aim is to provide governments with the financial resources and instruments to achieve their desired development goals and ensure a secure future for their citizens.”