Chinese firm to develop 15 MW solar project across 13 Maldivian islands

The Maldives on Monday signed agreements with Chinese renewable energy company Sino Soar Hybrid for a 15-megawatt solar power project across 13 islands, which the government expects to reduce diesel imports and save MVR 180 million (approximately USD 11.7 million) annually.

The Ministry of Climate Change, Environment and Energy announced that it and the State Electric Company had signed a Power Purchase Agreement and an Implementation Agreement with the company under the ARISE initiative.

The project covers two groups of islands: the Laamu Atoll cluster and major regional hubs.

It will be delivered through a 20-year development framework, with support from the World Bank, the Clean Technology Fund, the Asian Infrastructure Investment Bank and the Multilateral Investment Guarantee Agency through arrangements intended to reduce investment risks.

According to the ministry, the project is expected to reduce reliance on imported diesel by 15 million litres annually once operational.

The ministry estimates that this would generate annual savings of MVR 180 million.

For Maldivian households and businesses, the project’s significance lies in reducing the amount of imported fuel needed to generate electricity.

If the projected diesel reductions are achieved, less money would need to be spent on fuel imports, helping limit the country’s exposure to changes in international diesel prices.

The ministry said the project would raise cumulative solar capacity to 34 MW and support President Dr Mohamed Muizzu’s target of meeting 33 per cent of the country’s energy needs through renewable sources.

Sino Soar Hybrid is a Beijing-based company specialising in renewable energy, including solar microgrids and off-grid power systems.