Maldives issues first SEZ permit for $187m Project Solar City
The developer aims to mobilise the project by the end of April 2025 and expects it to be operational by 2027.
Maldives on Thursday issued the first Special Economic Zones (SEZ) Permit under the SEZ Act, granting approval for the development of Project Solar City.
The permit was issued through the Board of Investments to a Special Purpose Vehicle incorporated in the Maldives by Abraxas Power Corp, a Canadian company specialising in renewable energy.
According to the Ministry of Economic Development, “The Permit grants the Developer the right to develop and operate a 100MW floating solar photovoltaic (PV) project at a lagoon located approximately 4 – 5 km from Hulhumale. The project also includes investments in battery storage, and submarine cable interconnection to the main grid in Hulhumale."
The initiative is aligned with President Mohamed Muizzu’s target of sourcing 33% of the country’s electricity demand from renewable energy. The ministry stated that in 2023, fuel imports made up 22% of total imports, with nearly 80% allocated for diesel used in electricity generation and marine transport.
“Project Solar City will play a crucial role in reducing reliance on fossil fuels, leading to estimated savings of $42 million annually from the national fuel bill,” the statement read.
The permit also allows for complementary developments, including commercial real estate and an industrial hub, with the condition that renewable energy investments take priority. The renewable energy component of the project has a committed investment of over $100 million, with the total estimated investment reaching $187 million, in line with the requirements of the presidential decree under the SEZ Act.
The developer aims to mobilise the project by the end of April 2025 and expects it to be operational by 2027.
The Ministry emphasised that the issuance of the permit represents a milestone in the government’s efforts to encourage sustainable energy solutions and attract private sector investment for strategic projects under the SEZ framework.
“The government remains committed to fostering an enabling environment for innovative and sustainable economic development initiatives,” the statement concluded.
