Renewable Project in Cape Verde wins funding loans

IRENA and the Abu Dhabi Fund for Development (ADFD) announced funding to 4 renewable energy projects in developing countries, including a project in Cape Verde.

These four renewable energy projects in developing countries have secured vital funding loans totalling $46 million. The loans will finance a wind and solar project in Antigua and Barbuda, a solar scheme in Burkina Faso, solar and wind plants in Cape Verde and a solar site in Senegal. Together the projects will result in nearly 12 MW of new renewable capacity.

The funded project in Cape Verde consists of a 2 MW hybrid grid-connected solar PV and wind project that will receive USD 8 million to provide a 100% renewable energy solution for the Island of Brava. The project will avoid 4,665 tonnes of CO2 per year.

These projects are funded through the IRENA/ADFD Project Facility, which commits USD 350 million to increase the deployment of renewable energy in developing countries. To date, the facility has allocated USD 144 million in project funding over its first three cycles.

Loans are provided to finance up to 50 per cent of each project, attracting co-financing from banks, international financial institutions and other development partners. This mobilizes enough funds to more than double the original investment and helps build local financial markets to create valuable know-how for the future.

The fourth funding cycle of the Project Facility is now open for project proposals until 15 February 2016, with concessional loan interest rates of 1-2 per cent provided by ADFD. These low rates will support a broad range of renewable energy projects for the remaining four loan cycles.

More information here.