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EDB underscores commitment to growing UAE's solar power market

EDB underscores commitment to growing UAE's solar power market
18 Nov 2023 16:01

Emirates Development Bank (EDB), the key financial engine of the UAE's economic development and industrial advancement, underscored its commitment to driving the development and growth of solar power adoption across the emirates, during its participation in the Water, Energy, Technology, and Environment Exhibition (WETEX) and Dubai Solar Show 2023 (DSS).

The event was organised by Dubai Electricity and Water Authority (DEWA) from 15th to 17th November, 2023, under the theme, ‘At the forefront of sustainability’.

Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, said, "WETEX and Dubai Solar Show present an indispensable platform to connect with key players and experts in the energy and water sectors to discuss two of the most pressing issues of our time - energy transition and climate action. As the UAE's development bank, we have showcased our unique products and flexible financing terms that can help businesses switch to solar-power to cut emissions as well as reduce the cost burden for their renewable energy investments.

"The UAE's set targets to increase clean and renewable energy capacity to 14 gigawatts by 2030 combined with the falling costs of solar technology and abundant sunlight in the country make solar power a viable investment opportunity. We are pleased with the great turnout of businesses and investors who visited our stand to discuss how we can enable their solar energy projects and together, contribute to the growth of the UAE's renewable energy and climate tech market."

During the third day of WETEX and DSS, EDB's Chief Business Officer, Shaker Zainal participated in a panel discussion titled 'Sustainable Finance Unleashed: Accelerating the Green Transition in MENA's Financial Landscape' which discussed the innovative financial instruments driving the transition and the role of public-private partnerships in increasing sustainable financing.

EDB offers competitive financing packages for the renewables sector to support the transition to clean and sustainable energy sources with a particular focus on solar power, in line with the UAE Energy Strategy 2050 which aims to triple the share of renewable energy by 2030. 

Early in 2023, the Year of Sustainability in the UAE, EDB added renewables to the national priority sectors it supports, to help ensure a just and equitable energy transition to renewables for all. EDB offers up to 100 percent financing of the project value with a maximum tenor of 15 years and a two-year grace period for investments in alternative or renewable energy, or UAE businesses shifting to clean and renewable energy sources.

In addition, in tandem with the UAE's increased focus on renewable energies and net-zero initiatives ahead of COP28, EDB has recently launched a first-of-its-kind Solar Energy Financing Program with a planned financing budget of Dh100 million to support businesses, especially micro, small, and medium enterprises (mSMEs), to shift to cleaner sources of energy. 

With convenient application processes, the solar financing program offers medium- and long-term loans and working capital of up to Dh5 million, particularly directed at solar energy projects.

This includes support for technology providers, equipment suppliers, energy consumers across various sectors, and other related energy endeavours such as electricity, hydrogen production and use, waste management, and water plants.

This bespoke offering comes with the Bank's usual highly beneficial terms and conditions, offering up to eight years long tenor loans for structured finance projects and solar panels, with grace periods of up to six months and a 100 percent Loan-to-Value (LTV) ratio.

Financing is offered for CAPEX finance for solar panels, while greenfield and brownfield project financing is available for other renewable energy sources. In addition, EDB will be providing finance for the full appraised value or purchase price of the asset.

Source: WAM
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