Abu Dhabi Fund for Development (ADFD) will fund the International Renewable Energy Agency's (IRENA) two selected solar projects in Mauritius and Rwanda, IRENA said on Saturday.
Established in 2013, this seven-cycle facility offers $350 million in concessional loans from the ADFD to help developing countries access low-cost capital for renewable energy projects.
The IRENA/ADFD project facility will finance both projects – the beneficiaries of the fifth funding cycle.
According to the announcement, the projects have the potential to significantly transform the lives of over 2.5 million people and alleviate poverty by bringing affordable energy to low-income communities.
'The loans cover up to 50 percent of project costs, leveraging additional funding from other sources. Since 2014, ADFD has allocated $214 million to 21 projects, attracting over $420 million in additional co-financing from governments and development funds,' the agency underlined.
In Mauritius, the ADFD $10 million loan will help the Central Electricity Board install solar PV systems on the rooftops of 10,000 households as part of the government’s efforts to alleviate poverty while contributing to the national target of achieving 35 percent of renewable electricity in the energy mix by 2025.
In Rwanda, the ADFD loan of $15 million will contribute to the installation of 500,000 off-grid solar PV home systems across the country, providing clean electricity for lighting, mobile phone and radio charging.
By Gulsen Cagatay
Anadolu Agency
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