Minister of Environment Dr Hussain Rasheed Hassan has said Maldives received notable grants from international funds to develop renewable energy.
Speaking to PSM News, Dr. Hussain said the ministry has received USD 10 million and 5 million euros to invest on renewable energy projects that in turn reduces expenditure on fossil fuels. He said the ministry also expected to receive an additional USD 16 million in donations. The government has also allocated USD 100 million from the credit facility provided by India.
The environment minister said the grants Maldives has received would allow to establish solar power systems to produce 70% of the energy consumed during peak hours in Haa Alifu Atoll, Haa Dhaalu Atoll Shaviyani Atoll and Noonu Atoll. He further said the initiative to establish Solar Photovoltaic (Solar PV) systems to produce 21 megawatts of power in Kulhudhuffushi, Eydhafushi, Hinnavaru, Thinadhoo, Fuvahmulah City and Addu City has been tendered after preliminary research. The ministry has also contracted to develop a 5-megawatt Solar PV System on Male' Ring Road.
The minister said the most notable achievement thus far is the development of solar power systems in 40 islands and connecting solar power systems to existing electric utility grids in those islands. The government intends to cut costs on import of fuel by developing renewable energy systems in all parts of the country, the minister said.
Every year, the state spends a large share of its budget to import fuel to produce power. The amount paid in subsidies for electricity is also a huge expenditure of the government.