Abu Dhabi Fund for Development (ADFD) opens fourth round of renewables funding

The International Renewable Energy Agency (Irena) and the Abu Dhabi Fund for Development (ADFD) are seeking applications for renewable projects for the fourth round of funding totaling US$50 million.

This fourth round is part of a $350 million commitment from the ADFD that provides concessional 20-year loans with low interest rates to projects that Irena supports and have a government guarantee, with loan values between $5 million and $15 million.

The interest rate runs at 1 % for low-income countries, while middle-income countries are granted loans with an interest rate of 2 %. The loans include a five-year grace period.

Adnan Amin, Irena’s director general, said: 

“This new funding cycle provides another opportunity for developing countries to access low-cost capital for renew- able energy projects to drive an energy transition and achieve sustainable development.”

So far the first two rounds of the Irena and ADFD partnership included $98 million worth of projects expected to produce renewable energy capacity exceeding 56 MW. The third round of funding has yet to be awarded.

Just under 30 per cent of the $98 million in funding has gone to Africa. For instance, a $9 million loan for Sierra Leone’s solar photovoltaic park is funding an EPC contract awarded to Oasis Gulf Investment. The firm will build the $18 million solar park in Freetown using solar panels made by Masdar, the Abu Dhabi government’s clean energy company.