Dubai Electricity and Water Authority (Dewa) will provide the seed capital for the $27.28 billion (AED100 billion) Dubai Green Fund and allow international companies to participate in it, Dewa chief Saeed Al Tayer told Arabian Business.
The fund, which was launched in November 2015 as part of Dubai Clean Energy Strategy 2050, aims to provide financial tools for investors in clean energy.
“We will allow international funds to be part to our green fund, which will be financed through equity and bonds,” Saeed Al Tayer said on the sidelines of the World Green Economy Summit. He, however, refuse to give the equity contribution amount by Dewa.
The Green Fund will be offering easy loans for investors in the clean energy sector at reduced interest rates.
Al Tayer further revealed that 80 percent of the investments in its ongoing independent power producer (IPP) projects in the Mohammad Bin Rashid Al Maktoum Solar Park were from financial institutions.
“For the 1000 megawatt under construction in MBR Solar Park, 80 percent of the funding is coming from banks. However, we can’t apply the same model to retrofit projects… you need to have low-cost funding and the [Green] fund will provide this funding.”
Dubai’s Clean Energy Strategy, consisting of five main pillars - infrastructure, legislation, funding, building capacities and skills - aims to provide seven per cent of the emirate’s energy from clean energy sources by 2020. The target will increase to 25 percent by 2030 and 75 percent by 2050.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.