The Maldives has signed key agreements to develop a 15-megawatt solar photovoltaic project, strengthening the country’s transition towards cleaner energy while reducing its reliance on imported fuel. The project is expected to generate annual fuel savings of approximately USD 11.6 million and reduce diesel imports by around 15 million litres each year.
The project is being developed under the Accelerating Renewable Energy Integration and Sustainable Energy (ARISE) programme and represents the largest solar photovoltaic development undertaken in the Maldives to date, according to the Ministry of Climate Change, Environment and Energy.
As part of the project arrangements, a Power Purchase Agreement was signed between Sinosoar Hybrid Technology and the State Electric Company Limited (STELCO), while an Implementation Agreement was signed between Sinosoar Hybrid Technology and the Ministry of Climate Change, Environment and Energy.
The solar project will be implemented through a 20-year private investment arrangement under a design, build, finance, own, operate and transfer model. This structure enables private sector participation in the development and operation of renewable energy infrastructure while supporting the Government’s wider strategy to expand sustainable power generation across the country.
Under the project, 2 MW of solar capacity will be distributed across six islands, while a further 13 MW will be developed in major regional centres. The geographical distribution of the project is expected to support cleaner and more efficient electricity generation beyond the capital region, helping reduce dependence on diesel-based power generation in island communities.
Once completed, the project will increase the combined solar capacity installed under the ARISE and Accelerating Sustainable Private Investments in Renewable Energy (ASPIRE) programmes to 34 MW, further strengthening the Maldives’ renewable energy portfolio.
The Maldives had reached 110 MW of installed renewable energy capacity by the end of 2025. The Government is continuing efforts to increase the share of renewable energy in national electricity generation to 33%, with major solar investments forming an important part of its strategy to improve energy security, reduce fuel expenditure and build a more sustainable energy system.
The latest project also reflects the Government’s continued focus on attracting private investment into the renewable energy sector while reducing the country’s exposure to fluctuations in global fuel prices. For an island nation heavily dependent on imported fossil fuels, expanding solar generation is expected to deliver long-term economic and environmental benefits while supporting more resilient infrastructure across the Maldives.
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