IRENA, ADFD accepting applications for loan program

By Erin Voegele | November 28, 2017

The International Renewable Energy Agency, in partnership with the Abu Dhabi Fund for Development, is accepting applications for renewable energy projects in developing countries. Bioenergy is among the eligible technologies, along with geothermal, hydropower, ocean energy, solar and wind.

The current round of funding marks the sixth of seven annual cycles and will offer $50 million in concessional loans. The funding is part of an ADFD-funded $350 million IRENA/ADFD Project Facility.

Funding from ADFD, provided through the IRENA/ADFD Project Facility, offers sustainable and affordable energy to millions of people with limited or no access to electricity. During the first four cycles, IRENA said the Project Facility allocated $189 million to 19 renewable energy ventures, covering up to 50 percent of the project cost. This includes a 3 MW bioenergy project in Samoa that was awarded $7 million and a 2 MW bioenergy project in Maldives that as awarded $6 million. IRENA said ventures funded during the first four cycles will bring on more than 100 MW of renewable energy capacity.

Projects selected for the fifth funding cycle will be announced in January.

Applications for the sixth funding cycle are being accepted through Feb. 15, 2018.

According to information published by IRENA, applications will be evaluated by an independent, international panel of experts that shortlist projects based on technical feasibility, economic and financial viability, and socio-economic and environmental impacts. Shortlisted projects will be asked to submit full project proposals, including a full economic feasibility study in May.

ADFD sovereign loans cover up to 50 percent of project costs, with the remainder needing co-financing. Each loan is expected to be in the range of $5 million to $15 million, with loan rates of 1-2 percent and a 20 year loan period that includes a five year grace period.

Eligible projects must be submitted by members of IRENA, signatories of the statute, or states in accession, which are developing countries on the OECD “DAC list of ODA recipients.” Projects must also have the support and prioritization of the host government and be able to obtain a sovereign government guarantee. In addition, eligible projects must be at the feasibility study and pre-implementation stage.

Additional information is available on the IRENA website.