Abu Dhabi, UAE, 13January 2018: The Abu Dhabi Fund for Development (ADFD) and the International Renewable Energy Agency (IRENA) approved USD 15 million (about Rwf12.6bn) for the solar photovoltaic (PV) project in Rwanda. The approved loan will contribute to the installation of 500,000 off-grid solar PV home systems in Rwanda, providing clean electricity for lighting, mobile phone and radio charging.

The funding is part of US $ 25 million concessional loans announced by the Abu Dhabi Fund for Development (ADFD), a national entity for development aid, and the International Renewable Energy Agency (IRENA), a global platform for international cooperation on renewable energy- to benefit Rwanda and Mauritius.

The project is a major part of the Rwanda government’s rural electrification strategy, and is said to be one of the most affordable payment schemes in Africa. It employs a flexible mobile payment platform, essential in areas poorly served by banking and transportation infrastructure. At least 2.5 million people in rural communities are expected to benefit from improved electricity access, and more than 2,000 local jobs will be created.

The selected projects will support poverty alleviation through renewable energy.

Announced at the Eighth Session of the IRENA Assembly, both projects – beneficiaries of the fifth funding cycle – are being financed through the IRENA/ADFD Project Facility. The loans cover up to 50 percent of project costs, leveraging additional funding from other sources. Since 2014, ADFD has allocated US $214 million to 21 projects, attracting over US $420 million in additional co-financing from governments and development funds.

Adnan Z. Amin, Director-General of Irena, said: "For developing countries, renewable energy is a triple win: It offers a cost-effective means of supplying electricity to families, fuels economic growth and supports energy independence and security”. “However, many developing countries have trouble accessing funding for renewable energy projects. Our continued partnership with ADFD will provide a stable, low-cost source of financing to help Mauritius and Rwanda achieve a sustainable energy future", Adnan Z. Amin added.

Mohammed Saif Al Suwaidi, Director-General of ADFD, said: "ADFD's collaboration with Irena aligns with the Fund's core mandate of supporting sustainable socio-economic development across developing countries through financing projects that serve vital economic sectors. The ADFD places high priority on renewable energy as a catalyst of inclusive development." He noted that ADFD priorities renewable energy as a catalyst for inclusive economic and social development.

Established in 2013, this seven-cycle Facility offers $350 million in concessional loans from ADFD to help developing countries access low-cost capital for renewable energy projects.