The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) have officially launched the fifth round of funding for renewable energy projects in developing countries. The funding round of about $50m is part of ADFD’s $350m commitment to renewable energy projects endorsed by IRENA, reported IRENA website.
Through the facility, ADFD provides concessional loans ranging from $5m to $15m per project. Finance is offered at 1 to 2% lending rates with a 20-year loan period, including a 5-year grace period. Loans for each project cover up to half of the estimated project cost so additional co-financing must be acquired from other sources, according to Gulf News. IRENA also offers assistance for finding additional sources of funding and project developers through its sustainable market place.
Since 2012, the IRENA/ADFD Project Facility had enabled $333m in loans to 15 renewable energy projects in 14 developing countries. Selected projects thus far have included off-grid, mini-grid and on-grid projects using wind, solar, hydro, geothermal and biomass sources.