The Abu Dhabi Fund for Development (ADFD) and the International Renewable Energy Agency (IRENA) announced that $25 million in concessional loans from ADFD have been earmarked for two solar PV projects, one each in Mauritius and Rwanda. In Mauritius, the ADFD loan of $10 million will help the Central Electricity Board install solar PV systems on rooftops of 10,000 households as part of the government’s efforts to alleviate poverty whilst contributing to the national target of achieving 35 percent of renewable electricity in the energy mix by 2025. An estimated 35,000 people in low income communities will benefit from significant electricity bill savings. The project will bring 10 MW of new renewable energy capacity online.

In Rwanda, the ADFD loan of $15 million will contribute to the installation of 500,000 off-grid solar PV home systems across the country, providing clean electricity for lighting, mobile phone and radio charging. The project is a major part of the government’s rural electrification strategy and is one of the most affordable payment schemes in Africa. It employs a flexible mobile payment platform, essential in areas poorly served by banking and transportation infrastructure. 2.5 million people in rural communities are expected to benefit from improved electricity access, and more than 2,000 local jobs will be created.

According to IRENA, the projects have the potential to significantly transform the lives of over 2.5 million people and alleviate poverty by bringing affordable energy to low-income communities. The loans cover up to 50 percent of project costs, leveraging additional funding from other sources.