$57m wave of renewable energy loans announced

This is the second loan cycle of seven, which will commit $350m over seven years to the deployment of renewable energy in developing countries, with a total project value of an estimated $800m. The funds from ADFD will mobilise other funds and will lead to more than double the invested amount, says IRENA.

Projects approved for funding in the second loan cycle include solar, hydro, hybrid (wind and solar) and geothermal energy. The projects selected represent a mix of renewable energy sources, are innovative, potentially replicable or scalable, and will improve energy access.

The IRENA/ADFD Project Facility pioneers the support of renewable energy as a viable and sustainable focus for foreign development assistance that offers long-term social and economic benefits to developing countries.  

The third funding cycle of the Project Facility is now open for project proposals, with concessional loan interest rates of 1-2%. These new, lower rates will support an even broader range of renewable energy projects throughout the remaining five loan cycles.

“Renewable energy offers the prospect of clean, affordable power to the 1.3bn people currently off the electricity grid,” said Adnan Z. Amin, Director-General, IRENA. “While renewable energy resources are abundant in many communities suffering from energy poverty, finance is still a key challenge for deployment. That is why the partnership between IRENA and ADFD is so important as a pioneering effort.”

“As part of its mandate to work on projects with a profound impact on the economies of developing countries, ADFD has collaborated with IRENA to support the renewable energy sector as a tool for economic and social development,” commented Mr. Adel Abdulla Al Hosani, Director, Operations Department, ADFD. “Towards this priority, we are keen to support the economic development and deployment of sustainable energy projects in countries with immense clean energy potential, but lacking necessary financial resources and project management expertise.”

“The UAE sees renewable energy as a cornerstone of sustainable development, with dramatic cost reductions having made it the most competitive energy option in many developing countries,” added Dr. Thani Al Zeyoudi, Permanent Representative to the IRENA and Director of Energy and Climate Change, Ministry of Foreign Affairs, UAE. “The partnership between ADFD and IRENA provides a powerful way to demonstrate renewable energy’s viability and speed up further deployment.”