Summary 

In March 2024, a team of experts mobilized by UNDP’s Energy and Sustainable Finance Hub and UNCDF visited the Maldives to scope out potential financing solutions to address Maldives renewable energy needs. The current IFIs combined programmes while of significance and substance may however fell short towards the actual 33% energy consumption through renewable energy target set by the administration. Following the mission, several avenues were identified as having potential to deliver the required transition at scale. To explore these options, The UN Resident Coordinator is requesting the assistance of the Joint SDG Fund to design the portfolio of options proposed by the mission. Informed by the mission, the joint programme is designed as catalytic funding to accelerate the implementation of solutions that would help the Maldives achieve its renewable energy goals. Through this project, 3 immediate interventions have been proposed: 1. Produce options for Maldives in support of available SDG financing instruments through market-based approaches; 2. Providing technical assistance to strengthen governance and resource mobilisation capacity of public trust funds to assist energy transition 3. Enable institutional environment that would implement large scale blended finance energy transition initiatives in Maldives These interventions aim to support the Maldives in achieving its renewable energy targets and transitioning towards a sustainable energy future. 

Background 

The Maldives among the most vulnerable countries in the world with respect to the impacts of climate change and natural disasters and virtually every aspect of socioeconomic development in the island nation is impacted by the negative impacts of climate change and disasters. In 2023, President of the Maldives set a goal for the Maldives to obtain 33% of its energy from renewable sources by 2028, aligning with the nation's efforts to move towards a more sustainable energy sector. 

This initiative is important considering the increasing demand for electricity in the Maldives over the past decade, driven by the country's steady economic expansion. Between 2000 and 2021, the Maldives experienced a substantial increase in electricity demand, growing from 0.1 TW to 0.66 TW, outpacing average annual gross domestic product (GDP) growth rate in most years. To service this demand, the Maldives relies heavily on imported diesel - in 2021 alone, they imported $535M in refined petroleum from Oman, India, Singapore, Saudi Arabia, and the United Arab Emirates, making up 10% of their GDP. Given the burden that diesel imports place on its economy, the government is strategically moving to reduce its dependence on imported fuel, aiming to alleviate the strain on foreign exchange reserves, while prioritizing investments in RE. 

Project Outcomes 

Outcome 1: Produce options for Maldives in support of available SDG financing instruments through market-based approaches.  

Outcome 2: Providing technical assistance to strengthen governance and resource mobilisation capacity of public trust funds to assist energy transition 

Outcome 3: Enable institutional environment that would implement large scale blended finance energy transition initiatives in Maldives 

GESI/GEWE Component 

Over the course of implementation of the project, the project will consider potential differential impacts on women, girls, youth and other groups and demographics of the population who would be affected by energy transitions/climate actions.  

Major Achievements 

In a follow-up energy mission in May 2025, a broad range of stakeholders have been brought on board to develop a risk participation scheme of USD 700,000 to mobilize over USD 3.1 million in clean energy loans, enabling the installation of approximately 2.2 MW of solar PV. This is projected to generate 3.6 million kWh annually, avoid over 1 million liters of diesel consumption, and reduce CO₂ emissions by 2,785 tons per year 

National Partner: 

Ministry of Tourism and Environment 

Donor and Funding: 

UN Joint Programme 

Total Resource Mobilization 

Project Duration: 2024-2025