Abu Dhabi, U.A.E.: The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) officially opened the fifth round of funding November 14 for renewable energy projects in developing countries.
The funding round of approximately US$50 million is part of ADFD’s US$ 350 million commitment offering concessional loans to renewable energy projects endorsed by IRENA.
Since 2012, the IRENA/ADFD Project Facility has enabled US$333 million in loans to 15 renewable energy projects in 14 developing countries. Selected projects thus far have included off-grid, mini-grid and on-grid projects using wind, solar, hydro, geothermal and biomass sources. Thanks to the first three cycles, more than 68 megawatts of renewable energy capacity will be brought online, improving the livelihoods of 760,000 people.
“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.”
Through the Facility, ADFD provides concessional loans ranging from US$5 million to $15 million per project. Finance is offered at 1 to 2 per cent lending rates with a 20-year loan period, including a 5-year grace period. Loans for each project cover up to half of the estimated project cost so additional co-financing must be acquired from other sources. To help facilitate additional sources of funding, project developers can register and seek financing sources from IRENA’s Sustainable Energy Marketplace.