Seychelles’ tourism revenues are not enough to fund its energy import bill and meet renewables targets. Courtesy Kalpana Sunder Abu Dhabi Fund for Development, the UAE’s government-backed development aid entity, has allocated Dh64.2 million ($17.4m) towards two renewable energy projects in the Seychelles, it said in a statement on Monday.
Around Dh31.2m of the aid will be dedicated to an upcoming solar farm developed by Abu Dhabi clean energy company Masdar in the artificially-built island of Romainville, while the remainder will be channelled as investment for a 33 kilo-Vault power grid to be built in Mahe.
“These projects are focused on strategic sectors that promote sustainable economic development in the Seychelles including housing, telecommunications, transport and energy,” said ADFD director general Mohammed Al Suwaidi.
He added that around Dh399m had been spent in financing development projects across the Seychelles so far.
An archipelago in the Indian Ocean to the East of Africa, Seychelles meets nearly all of its energy needs through crude imports.
To lower imports that have added to the high cost of electricity and transportation, the government announced an energy policy to produce around 5 and 15 per cent of its energy from renewables by 2020 and 2030 respectively.