The last powerhouse being operated by the residents has been handed over to the government.
The government began operating all powerhouses previously handled by residents after Ungoofaaru Island Council handed over operations of its powerhouse to Fenaka Corporation Limited. President of Ungoofaaru Island Council Abdulla Rasheed officially handed over the powerhouse operations to Managing Director of Fenaka Ahmed Saeed Mohamed at a special ceremony.
The government is now operating all powerhouses which were previously handled by the residents. The concept to take over operations of the powerhouses was formulated during the administration of the Maldivian Democratic Party (MDP) in 2008 and was renewed in 2018. The current administration has since transferred operations of the powerhouses to Fenaka and State Electric Company Limited (STELCO).
Speaking at the ceremony in Ungoofaaru, Minister of Environment, Climate Change, and Technology Aminath Shauna said that the operations of the island’s powerhouse will be more efficient under Fenaka. She said it will also pave the way for the development of renewable energy and reduce the state’s expenditure on fuel. She noted that the finances saved from reducing the reliance on fuel can be used to fund the development of the health and education sector.
Also at the ceremony, Council President Rasheed said the cost of operations has increased due to the hike in global fuel prices as a result of the Russia-Ukraine conflict although there had been no issue in operating the powerhouse. He said that the council is not able to handle the rise in costs and that attempts to continue operations with subsidies had failed.
Powerhouse operations began in Ungoofaru with two hours of service per day, which extended to 12 hours and then 24 hours in 2006. Afterward, the island council took over operations with 21 employees, who have now signed agreements to work for Fenaka.
The powerhouse generates 2.9MW of electricity with four generator sets. Fenaka stated that a new 800MW generator set will be installed to increase the power capacity to 3.7MW and that the island's power grid will be upgraded at a cost of USD3.6 million.