The Ministry of Climate Change, Environment and Energy has signed agreements to develop a 15 MW solar photovoltaic (PV) project under the Accelerating Renewable Energy Integration and Sustainable Energy (ARISE) project.
A Power Purchase Agreement was signed between Sinosoar Hybrid Technology and the State Electric Company (STELCO), while an Implementation Agreement was signed between Sinosoar Hybrid Technology and the ministry. According to the ministry, this is the largest solar PV project to be undertaken in the Maldives to date.
The project will operate under a 20-year arrangement involving private investment, with a design, build, finance, own, operate and transfer model. The project has financial and technical assistance from the World Bank, Climate Technology Fund, Asian Infrastructure Investment Bank and Multilateral Investment Guarantee Agency under a special risk mitigation framework.
The project will be conducted in two lots. The 15 MW project comprises a 2 MW installation distributed across six islands and a 13 MW installation for major regional centres.
The project will increase the combined solar capacity under the ARISE and the Accelerating Sustainable Private Investments in Renewable Energy (ASPIRE) Project to 34 MW, which is 30 percent of the 110MW capacity of renewable energy established in the Maldives by the end of 2025.
The project is expected to save 15 million litres of imported diesel and USD 11.6 million in fuel expenditure annually. The ministry said the project will support the national target of generating 33 percent of the country's energy from renewable sources.