RENEWABLE ENERGY MALDIVES THE FUTURE IS NOW

Mission and Approach Mission Reduce Maldives’ over reliance on fossil fuel for its energy needs. Approach 1. Utilization of indigenous renewable energy resources 2. Promoting efficient energy use 3. Introduction and large scale application of viable green technology

REM Introduced grid connected solar PV to the Maldives.  1.8kW for a household in 2009 First to have signed long term PPAs with utility companies and private enterprises to provide clean energy.  652 kW with state run utility, 70kW with a private school, 34kW with a small hotel Introduced hot water driven air conditioning using absorption chillers.  Driven by waste heat from the exhaust of the diesel generating system. Introduced solar powered boats and diesel/electric hybrid boats.  The hybrid boat saves 24 litres of diesel every hour. Energy auditing and energy awareness.

Energy Situation in the Maldives Maldives spends around 20% of the GDP on importing fuel to meets its energy needs. This amounts to roughly US$400 million A big majority of it spent on producing electricity. Apart from a few solar PV installations, electricity is generated using small diesel electricity generator sets. Electricity tariff rates range from US$0.15/kWh to US$0.55/kWh Installed capacity in 2012 was 245MW. 49% on inhabited islands, 42% in resorts and 9% on other industrial islands. From the 120MW installed in inhabited islands, 50% of it is in the capital Male’.

Energy Situation in the Maldives 70% of the energy in an high rise office building in Male’ is consumed by the air conditioning system to provide comfort cooling. In a luxury resort the pattern is, 40% to 60% on air conditioning, 20% on producing desalinated fresh water. It is possible to change this over reliance on fossil fuel, through targeting the right areas, adopting appropriate technology and by strengthening the regulatory mechanism.

Renewable Energy : Targeting the right area Many pilot RE projects have been completed in the Maldives on small inhabited islands.  Results are not followed up and the information is not disseminated. Although the resorts are the single biggest consumer of energy, there is very little effort to bring them on board.  Encouraging them to recover the waste heat of existing diesel gensets and use it for other uses such as producing fresh water and air conditioning. In 2015 a 2.5MW tender was put out for grid connected solar PV for Male’ and a nearby island. No bidder was interested in bidding for Male’.  Male’ was supposed to be 1.5MW of roof mounted systems. There was lack of information on the availability of roof space for the project.

Renewable Energy : Technology Renewable energy projects in the Maldives are economically viable and competitive with conventional technologies. All renewable energy technologies are new to the Maldives and local investors are wary and sceptical. Difficult to get acceptance to concepts like district cooling. Limited local expertise to evaluate and analyse the value of renewable energy projects. In accepted technologies like solar PV, often most local investors find the initial investment to be too high.

Renewable Energy : Local Investment Local investment planning is very short term. Operational cost savings are rarely considered and life cycle costing of a technology is never carried out. Local financing of RE projects are just starting to emerge. Projects where local finance has been found are often hindered or delayed due to weaknesses in the regulatory mechanism.

Renewable Energy : International Investment International financing is difficult to obtain. Not only due to the size of the project but also due to lack of clear long term planning and due to political instability of the Maldives.  A project to connect a resort island and an inhabited island.  A win-win situation for both the resort and the island community.  International companies were willing to build, operate, own and transfer.

Renewable Energy : International Investment International investors often look for multi MW solar parks. In small islands multi MW solar projects are possible, but in a different format. Sometimes failure to explain these differences prevents the investment. The differences are what makes the project more attractive than a single solar park.  PV systems are distributed. Failure in one does not cause a system failure. Losses in earnings are minimised.  Smaller systems with different clients allow a higher rate to be negotiated.  Yes, there has to be a much bigger effort in the development of the project.

Renewable Energy : Regulatory Mechanism A net metering policy was introduced in the Maldives from the beginning of this month. Registration of grid connected PV systems is required. Sudden policy changes and lack of planning causes delays and loss of investor confidence.  There is uncertainty in the legal status of the utility companies and thus difficult to negotiate PPAs.  Previously, local authorities were given wide ranging powers to conduct development programs. A sudden change in policy has taken away all their powers and we had to cancel a solar PV project that would have reduced the local council’s energy bill by half.

Renewable Energy : Regulatory Mechanism Lack of strategic planning and communication between utility service providers. Water, electricity and sewage treatment service providers need to find common ground for energy efficient solutions.  Electricity company not allowed to sell piped water. Although they have plenty of hot water and can utilize their waste to provide district hot water and cooling networks. Lack of transparency in overall infrastructure development plans.  Many islands do not have a land use plan. RE projects need longer term guarantees.  Ownership of land is sometimes disputed. There is legal uncertainty in the Maldives regarding the ownership of roof mounted solar PV systems Limited stake holder involvement in early stages of project development.  Not a single RE project has failed in the Maldives due to technical reasons, but many have failed due to not-technical social issues.

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