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Maldives: Preparing Outer Islands for Sustainable Energy Development-Additional Financing

Sovereign (Public) Project | 46122-005 Status: Proposed

ADB and the Government of Maldives are working together to transform the existing energy grids on the archipelago into a hybrid renewable energy system. The Preparing Outer Islands for Sustainable Energy Development Project is installing energy management and control systems; energy storage; and improvements in distribution networks, in order to significantly reduce the need for diesel to generate electricity. The work includes installing equipment for solar diesel hybrid grids on about 160 islands. The project will replace inefficient diesel-based power generation grids on the islands with hybrid systems of both renewable energy and diesel in order to reduce the cost of electricity and the emissions created, as well as lower the subsidy burden on the government budget.

Project Details

Project Officer
Kolantharaj, Jaimes South Asia Department Request for information
Country
  • Maldives
Sector
  • Energy
 
Project Name Preparing Outer Islands for Sustainable Energy Development-Additional Financing
Project Number 46122-005
Country Maldives
Project Status Proposed
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant: Preparing Outer Islands for Sustainable Energy Development-Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 7.73 million
Loan: Preparing Outer Islands for Sustainable Energy Development-Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 7.74 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Conventional energy generation - Energy efficiency and conservation - Renewable energy generation - solar

Gender Equity and Mainstreaming Effective gender mainstreaming
Description ADB and the Government of Maldives are working together to transform the existing energy grids on the archipelago into a hybrid renewable energy system. The Preparing Outer Islands for Sustainable Energy Development Project is installing energy management and control systems; energy storage; and improvements in distribution networks, in order to significantly reduce the need for diesel to generate electricity. The work includes installing equipment for solar diesel hybrid grids on about 160 islands. The project will replace inefficient diesel-based power generation grids on the islands with hybrid systems of both renewable energy and diesel in order to reduce the cost of electricity and the emissions created, as well as lower the subsidy burden on the government budget.
Project Rationale and Linkage to Country/Regional Strategy The Maldives is the only country in South Asia to achieve 100% access to electricity. This includes the half of the population who live on outer islands. Given the geographic spread of the archipelago, each island is electrified with its own diesel-powered grid system, resulting in expensive and not very reliable electricity supply. Diesel power is also costly and requires government subsidies in excess of $40 million a year. The 100% diesel dependence of the Maldives makes it reliant on oil imports and also makes its carbon emissions per unit of electricity among the highest in the region. The Maldives has the potential for significant renewable energy resources, including solar energy and some areas appropriate for wind power. Studies show that the cost of energy generation from a hybrid system of renewable energy and fossil fuels would be significantly lower than the existing options. The transition to renewable energy has a sound economic rationale. It improves the financial situation of the government while at the same time lowering costs for consumers.
Impact More sustainable energy sector based on renewable sources
Outcome Shift towards clean and cost-effective energy sources
Outputs

Renewable-energy-ready grid systems developed for outer islands and greater Male region

Enhanced capacity of MEE, STELCO and FENAKA to implement renewable energy grid interventions

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Kolantharaj, Jaimes
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ministry of Finance (formerly Ministry of Finance and Treasury)
Ameenee Magu, Block 379, Male', Republic
of Maldives
Timetable
Concept Clearance 28 Oct 2019
Fact Finding 10 Feb 2020 to 16 Feb 2020
MRM 29 Feb 2020
Approval -
Last Review Mission -
Last PDS Update 28 Oct 2019

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Tenders

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Contracts Awarded

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Procurement Plan

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