Irena working to secure greater project funding

Abu Dhabi: In addition to supporting renewable energy projects through its collaboration with the Abu Dhabi Fund for Development (ADFD), the International Renewable Energy Agency (Irena) is also working to link other investors with project owners, a senior official said.

Investors from France, Germany and environmental financing organisation, the Global Environment Facility, are already funding schemes around the world, Henning Wuester, director of knowledge, policy and finance at Irena, told Gulf News.

“We have not formalised an agreement with these investors as yet, but we are indeed working with various sources that support renewables,” Wuester said.

At the same time, officials announced that the Irena is also developing a project facilitation platform, or ‘virtual marketplace’, to allow investors and project developers to connect and collaborate more easily.

“There is definitely a lot of interest in renewables. At present, the ADFD funds provide about 50 per cent of the amount needed to implement each project. But other national, governmental and multilateral sources are available, and do contribute,” Wuester explained.

For example, the total investment required for a geothermal project at St Vincent and the Grenadines is about $80 million (Dh293 million). As part of its second cycle of funds, the ADFD loaned the scheme $15 million (Dh55 million), and the remaining $65 million (Dh238 million) is being obtained from other sources.

“The total value of investment for the five selected ADFD projects therefore stands at $152 million (Dh558 million), nearly thrice the $57 million (Dh209 million) loaned by the ADFD,” the official added.

“The partnership between the ADFD and Irena [therefore] provides a powerful way to demonstrate the viability of renewable energy, and speed up further deployment,” said Dr Thani Al Zeyoudi, the UAE’s permanent representative to Irena and director of energy and climate change at the UAE Ministry of Foreign Affairs.