Abu Dhabi - The Abu Dhabi Development Fund (ADFD), which offers low interest loans, will meet up to half the costs of selected solar projects in Togo and Guyana with loans totalling $23 million. The two countries secured the loans at the ninth assembly of the International Renewable Energy Agency (IRENA).
IRENA will carry out due diligence on the selected solar projects.
A $15 million loan was granted for the construction of a 30 MW solar PV plant in Togo. The plant will have an installed capacity to power to power up to 700,000 households and small businesses. The solar plant will result in job creation for local women and greater access to clean drinking water.
In recent times Togo has seen an improvement of its electricity supply through off-grid installations by firms such as UK headquartered BBOXX. The company is already supplying power to more than 26,000 people since it started operating in Togo in 2017.
Guyana was allocated $8 million for the installation of 5.2 MW worth of solar systems in rural areas. About 34,700 people are expected to benefit from the project which seeks to address energy poverty. And about 120 jobs will be created over the lifetime of the projects.
In 2018 Guyana also received funding for a 100 MW project from the Norwegian government for a solar project. The country also has other solar development projects in the pipeline in the area of Diamond, where the national government is working with local industry to fulfil its target of getting all its power from renewable sources by 2025.
In the same project funding round, Liberia was awarded $8 million for the construction of a hydropower project.
The hydropower project financing was granted as part of the sixth cycle of the IRENA/ADFD Project Facility, which has committed to provide $350 million through concessional lending for renewable energy projects that receive IRENA recommendations after evaluation of their sustainable development impacts. The latest announcements bring total funding of $245 million for 24 projects.
Speaking at the latest funding round, outgoing IRENA director-general Adnan Z Amin said, “The projects selected this year will contribute towards meeting national energy access targets and will transform lives for the better. They will take advantage of cost-effective renewable energy to help reduce poverty, enable income-generating activities and provide electricity to healthcare facilities and educational institutions, which will create jobs, empower women, and strengthen local communities.”
During the IRENA assembly where ADFD funding awards were announced, a $10 million concessionary loan was finalized with the Mauritian government to fund a PV kit project.
The Mauritian project aims to provide 10,000 rooftop PV systems to low-income communities as part of the government’s development strategy, and will contribute to reaching the country’s aim of sourcing 35% of its power from renewable sources by 2025.