Opening its fifth funding round, IRENA and the Abu Dhabi Fund for Development further cements its commitment to renewable energy in developing regions, providing concessional loans for developing countries renewable energy projects. This funding round of $50 million is part of a larger $350m program to provide support to renewable energy projects endorsed by IRENA.
The LAC region has successfully engaged in this program in past rounds, including St. Vincent and the Grenadines (geothermal), Antigua and Barbuda (wind and solar), Cuba (solar), Argentina (hydro), Ecuador (hydro).
“Many developing countries are blessed with abundant renewable energy resources, yet access to financing can still hinder development,” said IRENA Director-General Adnan Z. Amin. “IRENA’s partnership with ADFD helps overcome this challenge by offering concessional loans to quality renewable energy projects in developing countries, which then leverage additional investment. Funding from the Facility helps boost renewable energy deployment and trigger economic growth, offering sustainable and affordable energy to people with limited or no access to electricity.”
ADFD could provide concessional loans ranging from USD 5 million to USD 15 million per project. Finance is offered at 1 to 2 per cent lending rates with a 20-year loan period, including a 5-year grace period. Loans for each project cover up to half of the estimated project cost so additional co-financing must be acquired from other sources. To help facilitate additional sources of funding, project developers can register and seek financing sources from IRENA’s Sustainable Energy Marketplace. The deadline for applications for the fifth cycle is 15 February, 2017. Results will be announced in January 2018.