Round Three of US$350 Million IRENA-ADFD Renewable Energy Funding Cycle Opens
Project facility now offers lower lending rates to support wider range of renewable energy projects in more countries
Abu Dhabi, United Arab Emirates, 7 December 2014 – In line with ADFD commitment to support renewal energy projects in cooperation with IRENA by extending concessional finance of up to USD 350 million over 7 cycles Abu Dhabi Fund for Development (ADFD) and the International Renewable Energy Agency (IRENA) have announced the opening of the third Funding Cycle for the Project Facility. Applicants can now submit request for funding of RE Technology project in accordance with the “Guidelines for applicants”. Countries that intend to apply for funding through the renewable energy development facility will have until February 18, 2015.
In support of this initiative ADFD has reduced their lending conditions to encourage developing countries to take advantage of the Project Facility. Successful projects will enjoy funding rates ranging between 1-2 percent only. ADFD believes that this action would attract a wider range of renewable energy projects – many of which can be hugely capital intensive.
“We believe that the provision of renewable energy is an important and effective form of development aid,” said Mohammed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development. “For that reason it is important that the recipients of the aid are able to fully realize the economic and social benefits of the clean energy projects delivered.
“Based on lessons learned from the first and second cycles we believe these new terms will significantly increase the facility’s impact, and encourage developing countries to utilize this opportunity.”
Projects approved for funding to date include solar, hydropower, biomass, wind energy and hybrid projects in Ecuador, Mali, Maldives, Mauritania, Samoa and Sierra Leone. The projects selected represent a diverse mix of renewable energy sources and innovative technologies that are replicable, scalable and will improve energy access in developing countries.
“The demand for concessional finance for renewable energy projects is high as demonstrated by the more than US $1.5 billion worth of loans requested in the first two cycles of the IRENA/ADFD Project Facility,” said Adnan Z. Amin, Director-General of IRENA. “The lower interest rates now offered by ADFD make this an even more effective platform to support innovative projects, a diverse range of technologies and a wider geographic spread of countries.”
ADFD pioneers the use of renewable energy as a viable and sustainable form of foreign aid that offers long-term social and economic benefits – through energy access – to developing countries. Recently, ADFD strengthened its commitment to the deployment of clean energy for aid delivering Samoa’s first wind farm in partnership with MASDAR.
The recipient countries from round two of the facility will be announced during the IRENA General Assembly, which takes place during Abu Dhabi Sustainability Week, from 17-24 January, 2015.
Last January, the facility announced that six renewable energy projects in six separate developing countries would receive more than $41 million in loans. Once complete, the projects will provide energy to over 300,000 people and numerous businesses.