Maldives Awards $285 Million Renewable Energy Project to Four Companies

The Maldives government has awarded a MVR 4.4 billion ($285 million) project to four companies to develop a 150MW floating photovoltaic power plant and related infrastructure in the Greater Male' Region. The project, led by Canadian company Abraxes Power Corp and Sungrow Power Supply Co. Ltd., aims to transition the island nation towards renewable energy solutions.

The government has issued its first-ever Initial Permit under the Special Economic Zones (SEZ) Act, enabling the Board of Investment to conduct necessary research and assessments. This initiative aligns with the Maldives' commitment to increase renewable energy generation from the current 4% to 33% by 2028, as emphasized by President Dr. Mohamed Muizzu at COP28.

Why this matters: The Maldives' ambitious renewable energy project constitutes a meaningful advance in addressing climate change and fostering a greener, more resilient future for the island nation. As a low-lying country vulnerable to rising sea levels, the Maldives' transition to clean energy functions as a model for other nations facing similar challenges.

The project is part of the government's efforts to improve the country's infrastructure and boost economic development. The four companies awarded the contract are Maldives Transport and Contracting Company (MTCC), Boskalis, Dredging International, and China Harbour Engineering Company (CHEC).

In addition to the renewable energy project, the Maldives government has reduced the lowest project value for a Special Economic Zone (SEZ) initiative from $150 million to $100 million. The country will also host the Air Service World Congress 2024 in Kurumbaa, which will serve as a platform for international representatives to discuss the future of global air service growth and development.

The government is also working to enhance food security through the Uthuru Thila Falhu project, which aims to reduce imports and promote local production of fruits, vegetables, and seafood. Furthermore, six independent candidates who were elected to the Parliament have signed with the main ruling People's National Congress (PNC) party, increasing the party's seats to 72 out of 93 in the next parliamentary assembly.

President Dr. Mohamed Muizzu expressed his confidence in the renewable energy project, stating, "This initiative is aligned with our commitment to generate at least 33% of our energy needs through renewable sources within the next five years. We anticipate this project fulfilling this commitment, making the Maldives the first global leader to achieve their COP28 pledge."

Key Takeaways

• Maldives awards $285M project to build 150MW floating solar plant, aiming for 33% renewable energy by 2028.
• Maldives issues first-ever Initial Permit under SEZ Act, enabling research and assessments for the project.
• The project is part of Maldives' efforts to improve infrastructure and boost economic development.
• Maldives reduces SEZ project value threshold from $150M to $100M, and will host Air Service World Congress 2024.
• Maldives aims to enhance food security through the Uthuru Thila Falhu project and increase ruling party's parliamentary seats.