An official agreement to install solar PV systems in six islands equalling 11 megawatts under the Accelerating Sustainable Private Investment in Renewable Energy (ASPIRE) project was signed today.
The initial agreement was signed between the Ministry of Environment, Climate Change and Technology and the joint venture of Mega First Power Industries Sdn bhd and POWERCHINA Huadong Engineering Corporation Limited. As part of the project, a power purchasing agreement was signed between Fenaka Corporation and the joint venture of Mega First Power Industries Sdn bhd and POWERCHINA Huadong Engineering Corporation Limited by their respective officials. Moreover, a cooperative agreement was also signed between Fenaka and the Ministry of Environment, Climate Change and Technology.
Under the agreement, a total of 11 megawatts of PV systems will be installed in the following six islands;
- Addu City (3 megawatts)
- Fuvahmulaku City (2 megawatts)
- GDh. Thinadhoo (2 megawatts)
- Kulhudhuffushi City (1.5 megawatts)
- B. Eydhafushi (1.5 megawatts)
- Lh. Hinnavaru (1 megawatt)
According to the Environment Ministry, 34 companies submitted pre-qualifications for this project, and from the companies that qualified for bidding, 4 companies lodged an official bid for the project. However, the bid submitted by the joint venture of Mega First Power Industries Sdn bhd and POWERCHINA Huadong Engineering Corporation Limited was evaluated as the best one and their proposed rate for power purchase agreement was the lowest.
The joint venture company proposed 9.888 cents per unit for 15 years. This is the lowest rate proposed by a company for a renewable energy project and is half the price of a unit sold from diesel power.
The physical works of the project are set to commence in the first quarter of 2023 and will finish by the end of the same year. The project will generate around 18 million units of electricity per year which in turn will reduce diesel consumption by 4.8 million liters. Moreover, considering the current price of diesel in the global market, MVR 55 million could be saved in costs, and 12,694 metric tonnes of poisonous gas will be reduced each year, according to the Environment Ministry.
The ASPIRE project has so far helped mobilize US$9.3 million in investment to install 6.5 megawatts (MW) of solar power in the Maldives. The success of ASPIRE has led to a more ambitious follow-on initiative, the Accelerating Renewable Energy Integration, and Sustainable Energy (ARISE) project, to help Maldives meet its goal of increasing its share of renewable energy to 70 percent by 2030.