Maldives signs pact for first SEZ-approved floating solar project
Approved in April last year, the solar city project includes the development of a 100 megawatt solar photovoltaic facility.
The investment agreement for the floating solar project, the first initiative approved under the Maldives' Special Economic Zone (SEZ) framework, was signed on Tuesday during the Maldives Investment Forum held in Singapore.
The agreement was signed by Environment Minister Thoriq Ibrahim on behalf of the Maldivian government and Managing Director James Colter ED on behalf of APM SPV Company. The project is being developed under Abraxas Power Corp, a Canadian renewable energy company.
Approved in April last year, the solar city project includes the development of a 100 megawatt solar photovoltaic facility, located 4–5 kilometres off Hulhumalé. As part of the project, a 6.8 kilometre submarine interconnection cable will be installed to link the battery storage facility to the Hulhumalé grid.
The project is expected to supply 50 per cent of the Malé region’s energy needs through renewable sources and could reduce oil expenditure by an estimated USD 1.2 billion over 20 years. This aligns with President Mohamed Muizzu’s objective of generating 33 per cent of the country’s electricity from renewable sources.
In 2023, oil products accounted for 22 per cent of the Maldives’ imports, with approximately 80 per cent of that used for marine transport and electricity generation.
The project developer is also permitted to undertake additional initiatives under the SEZ permit, including commercial real estate and an industrial hub, with a requirement to prioritise renewable energy investments.
The total project value is USD 187 million, of which USD 100 million is allocated to the renewable energy component. According to the Ministry of Environment, mobilisation is expected by the end of April 2026, with the project set to become operational by 2027.
