Installation of solar PV system which will save MVR 15M on fuel costs commences

Installation of the 5MW solar PV system at Hulhumale’ Link Road aimed at cutting down the fuel costs by the state on electricity production commenced on Wednesday.

Physical works on the project was officially inaugurated during a special ceremony held at the area on Wednesday, by Environment Minister Aminath Shauna, Vice President of South Asian Region of the World Bank Martin Raiser and senior officials from World Bank, STELCO and HDC.

The project marks the largest solar panel installation in the Maldives by a single contractor to date – which will generate 5MW solar power per day.

As per Environment Ministry, 7.3 million power units will be generated annually through this system – which will cut down fuel costs by the state on electricity production by MVR 15 million to MVR 20 million.

No expenses from the state budget will be incurred for this project. Funded by the World Bank, the project was awarded to the contractor on a private financing basis – to personally finance the resources for the project and complete the installation of the solar PV system. A Power Purchase Agreement (PPA) has also been signed between the contractor and STELCO – under which the contractor will sell electricity to the utility company.

The tender for the project saw responses from 21 bidders – which was succeeded by Thailand’s Ensys Company.

Ensys will oversee the generation of solar power under the project for a period of 15 years – during which the company will sell the generated solar power to STELCO at a rate of $10.09 cents (MVR 1.681) per unit.