UAE's capital Abu Dhabi and the International Renewable Energy Agency (IRENA) announced Saturday 25 million dollars for two solar photovoltaic (PV) projects in Mauritius and Rwanda.
The investment will be injected in loans by Abu Dhabi Fund for Development (ADFD) and IRENA, the global platform for international cooperation on renewable energy, said a statement by ADFD.
Announced at the 8th Session of the IRENA Assembly which took place on Saturday in Abu Dhabi, both projects are being financed through the IRENA/ADFD Project Facility, said the two entities.
Established in 2013, this facility offers 350 million dollars in concessional loans to help developing countries access low-cost capital for renewable energy projects.
The projects have the potential to significantly improve the lives of over 2.5 million people and alleviate poverty by bringing affordable energy.
The loans cover up to 50 percent of project costs, leveraging additional funding from other sources. Since 2014, ADFD has allocated 214 million dollars to 21 projects, attracting over 420 million dollars in additional co-financing from governments and development funds.
"For developing countries, renewable energy is a triple win: it provides a cost-effective means of providing electricity to families, fuels economic growth, and supports energy independence and security," said IRENA Director-General Adnan Z. Amin.
However, many developing countries have trouble accessing financing for renewable energy investment, he added. "We are delighted that our continued partnership with ADFD will provide a stable, low-cost source of financing to help Mauritius and Rwanda achieve a sustainable energy future."
In Mauritius, the ADFD loan of 10 million dollars will help install PV systems on rooftops of 10,000 households.
In Rwanda, the ADFD loan of 15 million dollars will contribute to the installation of 500,000 off-grid PV home systems across the country.
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