Abu Dhabi loans $14.9mn for geothermal power
Abu Dhabi Fund for Development will extend a loan of $14.9mn to St Vincent and the Grenadines to set up a geothermal power station in the country
Abu Dhabi Fund for Development will extend a loan of $14.9mn to St Vincent and the Grenadines to set up a geothermal power station in the country.
The power station is expected to generate 15MWH that will deliver clean energy to nearly 100,000 people across the volcanic island country.
When finished, the plant will cut the cost of electricity generation by 25% and make the grid more resilient to power cuts.
Working with the International Renewable Energy Agency (IRENA), the project is being funded as part of the Dh1.285 billion project facility, set up in 2012 to provide concessional financing for renewable energy projects in developing Irena member countries.
As one of the five projects selected for funding, the power plant aims to use naturally occurring geothermal energy to provide energy solutions for the islands.
“The proposed geothermal power plant will give a strong boost to the energy sector in our country, supporting its economic growth and development programmes,” said Ralph Gonsalves, prime minister of St Vincent.
“My government is keen to leverage our collaboration with the fund to push ahead with more development projects that deliver key sustainable development goals and benefit the overall economy.”
As a volcanic island, geothermal energy is in abundance in the Caribbean country and the project will help drive the wider energy sector and help support sustainable economic development across the country’s 32 islands.
“ADFD has paid particular attention to the renewable energy sector, given the essential role of the sustainable energy in meeting the growing needs of developing countries, and supporting their social and economic development,” said.
Mohammed Al Suwaidi, director general of ADFD said that despite the potential of renewable energy in sustainable development across the world, funding for costly sustainable projects remains one of the biggest barriers to enabling universal energy access.
“The renewable energy projects financed by the fund since 1974 have contributed to delivering clean energy for millions of people in more than 24 developing countries around the globe,” said Al Suwaidi.
“These projects have generated thousands of megawatts of renewable energy, and stimulated economic growth in the receiving countries.”
The construction and maintenance of the plant itself along with its 40km of electricity lines that need to be installed will create job opportunities for the local population.