Irena opens latest funding tranche for RE in developing nations
The International Renewable Energy Agency (Irena) and the Abu Dhabi Fund for Development (ADFD) have officially opened the first $50m tranche of fifth round funding for renewable energy projects in developing countries.
The United Arab Emirates has committed to providing $350m to renewables projects endorsed by Irena over seven funding cycles, through the ADFD.
Irena has developed evaluation guidelines to select projects for funding that are innovative and replicable, broaden access to energy, and address issues identified in the United Nations Millennium Development Goals.
Since 2012 the Irena/ADFD project facility has enabled $333m in loans and to 15 renewables projects in 14 developing countries. The selected projects include off-grid, mini-grid and on-grid projects using wind, solar, hydro, geothermal and biomass sources.
“Many developing countries are blessed with abundant renewable energy resources, yet access to financing can still hinder development,” says Irena director-general Adnan 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 provides concessional loans ranging from $5m to $15m per project through the facility.