Abu Dhabi Fund For Development Finances Renewable Energy Projects Worth AED4.4 Billion

Abu Dhabi Fund for Development finances renewable energy projects worth AED4.4 billion

From its inception in 1971 until December 2018, the Abu Dhabi Fund for Development, ADFD, the leading national entity for international development aid, has financed hundreds of development projects worth AED4.4 billion (US$1.187 billion) in the renewable energy sector around the world

ABU DHABI, (Pakistan Point News - 19th Jan, 2019) From its inception in 1971 until December 2018, the Abu Dhabi Fund for Development, ADFD, the leading national entity for international development aid, has financed hundreds of development projects worth AED4.4 billion (US$1.187 billion) in the renewable energy sector around the world.

Driving the objectives of the United Nations’ Sustainable Development Goals, SDGs, these projects have contributed to the production of about 2,584 MW of renewable energy in different countries.

Since 1974, ADFD has contributed to financing about AED2.7 billion ($737 million) in renewable energy projects through joint financing agreements with the governments of many developing countries. The remaining funds were allocated through innovative and strategic partnerships including the seven-cycle AED1.285 billion ($350 million) IRENA/ADFD Project Facility, the AED183.4 million ($50 million) UAE-Caribbean Renewable Energy Fund (UAE-CREF), as well as the UAE-Pacific Partnership Fund, UAE-PPF, valued at AED183.4 million ($50 million).

Mohammed Saif Al Suwaidi, Director-General of ADFD, said, "The Abu Dhabi Fund for Development believes in the vital role the renewable energy sector plays in attaining the sustainable development goals in developing countries. This important sector stimulates economic growth, creates employment opportunities, drives innovation, supports the advancement of other key sectors, and optimises the use of natural resources – all crucial factors in improving people’s lives."

"Over the past four-and-a-half decades, ADFD has financed projects in the renewable energy sector that meet the national priorities of developing countries. Through securing sources of energy, these projects have enabled the production of low-cost, affordable electricity and improved standards of living in these countries," Al Suwaidi added.

In addition to supporting sustainable development in key socio-economic sectors, ADFD has funded important renewable energy projects.

In Jordan, the ADFD contributed AED550 million (US$150 million) to fund the Sheikh Zayed Solar Power Complex in line with the Jordanian government’s objective of generating 20 per cent of energy from renewables by early-2020. The project involved the installation of 328,320 photovoltaic panels that will produce 227 GWh of solar power annually over a period of 20 years, enough to illuminate about 50,000 homes. The plant contributed to the creation of about 1,000 jobs during the construction phase and is set to provide 30 permanent jobs for its sustained operation and maintenance.

In Eastern Sudan, the ADFD allocated a $90 million concessionary loan and contributed to the construction of the Upper Atbara and Setit Dam Complex. In north Sudan, it provided AED735 million for the construction of the Merowe Dam. This strategic project helps the country fill its power deficit by producing electricity totalling 1,250 megawatts, benefitting more than 30 million people.

ADFD allocated an AED121 million ($33 million) concessionary loan for the development of a waste-to-energy facility in the Emirate of Sharjah. Expected to treat more than 300,000 tonnes of municipal solid waste (MSW) each year, or 37.5 tonnes per hour, the plant will have the capacity to generate around 30 megawatts of energy. Due for completion by early 2021, the facility aims to help attain Sharjah’s zero-waste-to-landfill target and the UAE’s objective of diverting 75 per cent of its municipal solid waste from landfills by 2021.

In the Republic of Seychelles, ADFD allocated AED103 million ($28 million) to produce clean electricity using wind turbine technology.

Diesel-powered electrical power plants were replaced with wind power. This project included the supply, installation and activation of wind turbine farms for electric power generation in several different areas of the island of Mahé.

In 2013, ADFD committed $350 million over seven funding cycles for the IRENA/ADFD Project facility. After the announcement of the sixth funding cycle in January 2019, the cumulative funding to date is $245 million.

Since the selection of projects for the first cycle in 2014, ADFD’s funding has benefitted 24 renewable energy projects in 23 countries, covering up to 50 per cent of the total project costs.

Launched at the Abu Dhabi Sustainability Week 2017, UAE-CREF aims to deploy renewable energy projects with a capacity of 11 MW in 16 Caribbean countries to help reduce reliance on fossil fuel imports, stimulate economic activity and enhance climate change resilience.

At the Abu Dhabi Sustainability Week 2019, the third cycle of the $50 million UAE-Caribbean Renewable Energy Fund, CREF, was allocated to projects delivered in Jamaica, Cuba, Suriname, Trinidad & Tobago.

ADFD earmarked $50 million in funding to the UAE-Pacific Partnership Fund (UAE-PPF), with the Abu Dhabi Future Energy Company, Masdar being appointed to develop and implement renewable energy projects in 11 countries under the fund.

The first cycle of UAE-PPF funding enabled the completion of small-scale solar and wind power projects in Kiribati, Fiji, Samoa, Tonga, Tuvalu and Vanuatu.

In May 2016, phase 2 of UAE-PPF supported the delivery of renewable energy projects in the Solomon Islands, Nauru, the Marshall Islands, Palau and the Federated States of Micronesia, with a combined power generating capacity of 3.25 megawatts.