The Minister of Climate Change, Environment and Energy is seeking potential investors to establish 10MW solar PV systems in the lagoon of Addu City, with bidding opportunities opened until October 29.
The ministry stated that the effort falls under the Accelerating Renewable Energy Integration and Sustainable Energy (ARISE) Project, in collaboration with the World Bank. The significant project aims to significantly increase the use of renewable energy, install battery storage systems for storing electricity from renewable sources, and modernise utility networks on the islands. Under the project, decisions have been made to establish 10MW solar PV systems in the harbour of Maradhoo, and 2MW solar PV systems in the central harbour of Hulhumeedhoo. Additionally, an 8MW solar PV system will be established in Hithadhoo Port Limited as well.
The ministry disclosed that the selected contractor will bear the capital expenses for establishing and maintaining the solar PV systems over a 20-year period. The contractor will be chosen through a competitive bidding process based on technical and financial capabilities, as well as proposed electricity rates.
The ministry anticipates that they will be able to elect a contractor during the first quarter of 2025. It also stated that practical works for the project will commence during the last quarter of 2025, following the completion of necessary surveys which will be conducted in the area in which the power systems are to be established. Additionally, it revealed that the systems would start providing electricity in the second quarter of 2026. Noting the significance of the project, the ministry projects a reduction of approximately 4.43 million litres of diesel annually. The ministry stated that it will further reduce the state expenditure on imported oil by USD2 million per year.
In addition to the ARISE Project, efforts are currently ongoing to install 5MW solar PV systems in the city, under the Accelerating Sustainable Private Investments in Renewable Energy (ASPIRE) Project, which is also funded by the World Bank. Hence, a total of 13MW solar PV systems will be established in the city, under both projects. Both projects will assist to reduce the state expenditure on imported oil by USD3 million per year.
Under the ARISE Project, solar PV systems of 36MW and battery energy storages of 40MW will be established in several islands across the nation. Additionally, the electricity networks of 19 islands will be upgraded and modernised as well.