Funding round opens for renewables projects in developing countries

A fifth funding round for renewable power projects in developing countries was opened this week by the International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD).

As part of ADFD and IRENA’s $350m Project Facility initiative, the $50m funding round will offer loans to renewable power projects endorsed by IRENA.

For the funding round, ADFD will provide loans ranging from $5m to $15m per project. Financing will be offered at 1-2 per cent lending rates with a 20-year loan period, including a five-year grace period.à‚ 

Loans for each project will cover up to half of the estimated project cost so additional co-financing must be acquired from other sources, IRENA said.

Since 2012, the Project Facility has supported 15 renewable power projects in 14 developing countries through three funding rounds which have dispensed $333m in loans. Projects have included on- and off-grid, as well as minigrid projects using wind, solar, hydropower, geothermal and biomass sources. ADFD and IRENA said over 68 MW of renewable power capacity will be brought online through the fund.à‚ 

“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.”

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