The Maldives has issued its first Special Economic Zones (SEZ) Permit under the SEZ Act, paving the way for the development of Project Solar City, a landmark renewable energy initiative. The permit, granted through the Board of Investments, was awarded to a Special Purpose Vehicle incorporated in the Maldives by Abraxas Power Corp, a Canadian company specialising in renewable energy.
According to the Ministry of Economic Development, the permit authorises the developer to construct and operate a 100MW floating solar photovoltaic (PV) project in a lagoon located approximately 4–5 kilometres from Hulhumalé. The project will also feature battery storage and a submarine cable interconnection to the main electricity grid in Hulhumalé.
The initiative aligns with the country’s target of generating 33% of the country’s electricity demand from renewable sources. In 2023, fuel imports accounted for 22% of total imports, with nearly 80% used for diesel in electricity generation and marine transport. The ministry noted that Project Solar City is expected to significantly reduce reliance on fossil fuels, leading to an estimated annual saving of $42 million on the national fuel bill.
The SEZ permit also allows for complementary developments, including commercial real estate and an industrial hub, with the condition that investments in renewable energy must take priority. The renewable energy component alone represents a committed investment of over $100 million, bringing the total estimated investment to $187 million, in compliance with the presidential decree under the SEZ Act.
The developer plans to mobilise the project by the end of April 2025, with an expected operational launch in 2027. The Ministry of Economic Development emphasised that this permit marks a significant step in the government’s strategy to encourage sustainable energy solutions and attract private investment for key projects within the SEZ framework.
“The government remains committed to fostering an enabling environment for innovative and sustainable economic development initiatives,” the statement concluded.
