The MREF is initially set to launch multiple sub-funds for renewable energy projects with a combined AUM of USD 20-100. The dedicated renewable energy fund will drive investment in renewable energy projects through facilitation of equity and debt for commercially viable projects undertaken by State-owned enterprises, private companies, and local councils.
The fund will be making direct equity investments and structured debt injections into renewable energy projects, with typical investment focus on solar, wind, biomass and hydropower. Due to the high cost of diesel-powered electricity in the Maldives, there is huge potential in terms of reduced fuel consumption and reduced CO2 emissions by investing in solar-powered electricity.