IRENA/ADFD open 5th round of funding for Renewable Energy Projects
The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) have officially opened the 5th round of funding with US$50 million available for "scalable, replicable and transformative" renewable energy projects in developing countries.
The International Renewable Energy Agency (IRENA), a global hub for renewable energy cooperation and information exchange by 148 Member States and the European Union (EU) and the Abu Dhabi Fund for Development (ADFD), a national organisation owned by the Abu Dhabi government to manage government grants and to help emerging countries achieve sustainable development by offering concessionary loans to finance development projects in these countries, have officially opened the 5th round of funding for renewable energy projects in developing countries. The funding round of approximately US$50 million is part of ADFD’s US$350 million (AED 1.285 billion) commitment offering concessional loans to renewable energy projects endorsed by IRENA.
Since 2012, the IRENA/ADFD Project Facility has enabled US$144 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. The first three cycles have seen over 68 MW of renewable energy capacity to 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.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, said Adnan Z. Amin, Director-General, IRENA.
– The IRENA/ADFD Project Facility is a pioneering partnership that supports the developing world’s energy needs by tapping into their abundant renewable energy sources. Selected projects have the potential to improve the livelihoods of millions of people by facilitating sustainable economic growth, bolstering energy security and expanding energy access. This collaboration with IRENA exemplifies our core business of partnerships and alliances to drive advancements in all key economy sectors, especially the renewable energy sector, which will guarantee a long-term, sustainable and environmentally conscious future. At ADFD, our aim is to provide governments with the financial resources and instruments to achieve their desired development goals and ensure a secure future for their citizens, said His Excellency Mohammed Saif Al Suwaidi, Director-General of ADFD.
Up to US$15 million per project
Through the Facility, ADFD provides concessional loans ranging from US$5 million to US$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.
Only projects located in IRENA Member States, Signatories of the Statute, or States in Accession are eligible to apply. Applications are evaluated by an international panel of experts who review the projects based on technical feasibility, economic/commercial viability and socio-economic and environmental benefits. The deadline for applications for the fifth cycle is 15 February, 2017. Results will be announced in January 2018. Further details including how to apply can be found here.