The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) have announced $46 million in concessional loans for four renewable energy projects in developing countries.
The loans will fund a wind and solar project in Antigua and Barbuda, a solar project in Burkina Faso, a solar and wind project in Cabo Verde, and a solar project in Senegal.
According to the partners, the projects will result in nearly 12 MW of new renewable energy capacity, reduce emissions, create jobs and electrify rural communities without access to modern energy services.
These projects are funded through the IRENA/ADFD project facility, which commits $350 million to increase the deployment of renewable energy in developing countries.
To date, the facility has allocated $144 million in project funding over its first three cycles. Loans are provided to finance up to 50% of each project and attract co-financing from banks, international financial institutions and other development partners. According to the partners, this mobilizes enough funds to more than double the original investment and helps build local financial markets to create valuable know-how for the future.
This round of funded projects comprises the following:
- Antigua and Barbuda: A 4 MW wind and solar project will receive $15 million to provide energy to desalinate water and increase climate resilience.
- Burkina Faso: A 3.6 MW solar photovoltaic (PV) mini-grid project will receive $10 million to provide modern energy services to more than 12,000 local families.
- Cabo Verde: A 2 MW hybrid, grid-connected solar PV and wind project will receive $8 million to provide a 100% renewable energy solution for the Island of Brava.
- Senegal: A 2 MW solar PV mini-grid project will receive $13 million to supply electricity to rural villages.
The fourth funding cycle of the project facility is now open for project proposals until Feb. 15, with concessional loan interest rates of 1%-2% provided by ADFD. These low rates will support a broad range of renewable energy projects for the remaining four loan cycles, according to IRENA and ADFD.
Previous projects approved for funding in cycles one and two include solar, hydropower, geothermal, biomass, wind and hybrid projects in Argentina, Ecuador, Cuba, Iran, Maldives, Mali, Mauritania, Samoa, Sierra Leone, and St. Vincent and the Grenadines.