Abu Dhabi Fund for Development (ADFD) has signed a new cooperation and support agreement with the International Renewable Energy Agency (IRENA) to ensure the effective allocation of the $350 million of funds pledged by ADFD for renewable energy projects in developing countries around the world.
The ADFD/IRENA funding facility will be better placed for targeted and effective renewable energy investments in developing countries through $6 million of technical and administrative support from ADFD over the next four years, IRENA informed.
With the new agreement, IRENA will benefit from increased technical and administrative support to encourage proposals from eligible countries, raise awareness, support submissions, assess projects, facilitate preliminary due diligence, explore financing options and measure progress and impact in selected countries to improve the effectiveness of the facility’s work.
The IRENA/ADFD Project Facility has already allocated $144 million worth of funds over three cycles for renewable energy, which will see 15 projects supported from the Pacific to Africa and from the Caribbean to the Middle East.
Mohammed Saif Al Suwaidi, General Director at ADFD, said: “We believe that renewable energy initiatives are the key to the next chapter of sustainable development around the world as they act as underlying pieces of infrastructure that can power homes, improve the efficiency of farms, provide clean drinking water, act as the engines for new businesses and enable economic diversification.
“This announcement ensures we can build on the excellent start we have made in combining our international development expertise with IRENA’s renewable energy specialisms and focus on maximising our impact in the future.”
ADFD/IRENA $350 million funding facility will consist of seven funding cycles, with the fourth funding cycle for the projects from ocean, solar, wind, bioenergy, geothermal, and hydropower energy sectors closed in February this year.
ADFD is an independent national entity affiliated to the Abu Dhabi government that offers concessionary loans, manages government grants through the direct supervision of such aid in project implementation and makes long-term investments and direct contributions to help developing countries achieve sustainable development.