Seychelles is finalizing a strategy to attract investment in renewable energy and green technologies, with plans set to be completed by year-end. The Seychelles Investment Board announced these plans after a workshop with UNCTAD aimed at boosting investment and finance in the sector.
Strategy to Boost Investment in Seychelles’ Renewable Energy
Seychelles is making strides toward a sustainable energy future. The small island nation is finalizing a comprehensive strategy to attract investment in renewable energy and green technologies. This strategy is set to be completed by the end of the year, marking a significant step in Seychelles' efforts to transition to greener energy sources.
On Thursday, Anne Rosette, the chief executive of the Seychelles Investment Board (SIB) shared details of these plans with the media. This announcement followed a workshop conducted in collaboration with the United Nations Conference on Trade and Development (UNCTAD).
The workshop which was held at the Eden Bleu Hotel was a consultative part of a three-year project aimed at boosting investment and finance in the renewable energy sector in Seychelles. The half-day workshop gathered stakeholders from various fields including finance, environment, and renewable energy. The goal was to provide these participants with a deeper understanding of Seychelles' energy transition and to collect their feedback.
In his address at the workshop, Minister for Agriculture, Climate Change, and Environment, Flavien Joubert highlighted the unsustainability of Seychelles' dependence on imported petroleum products. He noted that geopolitical tensions have led to uncertainties in supply and price fluctuations. This reliance on imported fuels makes Seychelles' energy situation increasingly precarious.
Boosting Economy through Renewable Energy
Joubert emphasized the need for further work to identify attractive investment projects. He expressed hope that the UNCTAD project would help Seychelles attract institutional investors.
Rosette mentioned that discussions to set up the strategy began in the first quarter of 2024. Following the workshop, SIB expects to identify bankable projects for promotion to both local and international investors.
"Renewable energy is cross-cutting," Rosette explained. "It involves other sectors like the circular economy and waste management." UNCTAD is supporting the collection of necessary information, strategy implementation, and training for SIB personnel and stakeholders.
Tony Imaduwa, Principal Secretary for the Department of Energy, addressed the challenges faced by the energy sector. He noted that increased energy consumption by households and commercial entities affects the percentage of energy generated from renewable sources. Imaduwa emphasized the importance of educating consumers on energy efficiency and exploring other renewable energy projects to meet set targets.
Seychelles’ Investment in Solar Energy
Seychelles has already made significant investments in solar energy. The largest solar farm which is located on Ile Romainville underscores the nation's commitment to renewable energy. Recently, Seychelles signed an agreement with the French energy company Qair to install a 5-megawatt photovoltaic (PV) system in the lagoon at Providence on Mahé's eastern coast.
Ile Romainville Solar Energy (Image: CC-BY)
The Seychelles 100 Percent Renewable Energy Strategy (SeyRES 100) is a key component of the nation’s energy transition plan. Joubert revealed that the strategy aims for a 15 percent transition to renewable energy sources by 2030. It includes increasing electricity generation from renewable sources and modernizing the entire electricity sector.
In addition to solar projects, Seychelles is collaborating with the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF) to offer financial incentives for renewable energy installations. Residential customers receive a 25 percent rebate on the total cost of PV systems and their installation. Commercial entities benefit from a 15 percent rebate.
Sustainable Solutions to Address Climate Change
The Seychelles which is located south of the equator faces unique challenges due to climate change. Rising sea levels and extreme weather events threaten the island's existence. In response, the nation is investing in sustainable solutions. This includes a 50,000 square meter solar park on Île De Romainville and five wind turbines, each with an output of 750 kilowatts.
Previously, Mahé's electricity was generated mainly from fossil fuels. The new solar park and wind turbines now produce seven million kilowatt-hours of green electricity annually, enough for around 2,000 households.
As Seychelles continues to invest in and expand its renewable energy infrastructure, it aims to secure a sustainable energy future while addressing the challenges posed by climate change.