Ministry of Environment, Climate Change and Technology has estimated that the project to install a 5MW solar power system on the Hulhule’-Hulhumale’ link road will be completed in the middle of the year.
The installation of the solar power system is financed by the World Bank under the Accelerating Sustainable Private Investment in Renewable Energy (ASPIRE) initiative. The project is the largest initiative in the Maldives under the second phase of ASPIRE and is expected to significantly decrease the reliance on oil and allow the government to save USD1.3 million and generate 7.3 million units of electricity each year. The project also involves installing a 600kW solar power system in households in Hulhumale’ and connecting it to the State Electric Company (STELCO) grid, according to the ministry.
The government aims to reduce spending on energy generation, which currently accounts for about 10% of the Gross Domestic Product (GDP), and allocate the funds to other sectors. Transitioning to renewable energy is a priority for the government to safeguard the economy from sudden changes, given the country’s dependence on fuel for energy generation and the volatility of the global fuel market.