By 2024, the total installed solar panel production capacity in the Maldives is projected to reach over 67.5 MW.⁵

The Maldives intends to achieve 70% of its power generation from renewable sources by 2030.⁶

The PV capacity of all water villas in Maldives can reach 86.3 MW.⁷

• Diesel Generation: The cost is approximately $0.23 to $0.33 per kWh. However, costs can rise to $0.70 per kWh for smaller inhabited islands due to inefficiencies and transportation logistics.²
• Solar Power: The cost of solar electricity generation is achieving prices around $0.109 to $0.21 per kWh under Power Purchase Agreements (PPAs).⁸

²

• Fossil fuels (mainly diesel): 96%
• Renewables (mostly from solar): 4%

Approximately 82 islands in the Maldives have 24-hour electricity access, while others may receive as little as five hours of electricity daily. Overall, the average daily electricity availability across the country is around 20 hours, with significant discrepancies between urban areas like Malé and rural outer islands.⁹

There are approximately 26,000 residential solar panels and installation in Maldives, mostly on the water villa roofs.⁷

The country is actively expanding its solar power projects, with several initiatives underway:

• 5 MW solar projectin Malé, inaugurated in December 2022 under the World Bank-funded ASPIRE project¹⁰
• 15 solar power projects are planned across 14 islands, with capacities ranging from 1 MW to 5 MW each, expected to be completed by 2025.¹¹
• 20 MW ADB Maldives Solar PV Park project, currently at the announced stage, expected to enter commercial operation in 2026¹²

The decentralized structure of the Maldives, with its many dispersed islands, makes off-grid solar solutions highly appealing. Solar mini-grids and standalone systems offer reliable electricity to remote communities where extending the central grid isn’t feasible.¹³

There is a growing interest from investors in the off-grid solar market, as evidenced by the 58 companies that sought to pre-qualify for a recent 21 MW solar tender, which includes floating solar projects.¹⁴

There are at least four notable tenders for on-grid solar systems of total capacity 58.5 MW currently in the Maldives, reflecting the government’s commitment to expanding solar energy capacity and integrating renewable energy into the national grid:

• 15 MW Tender: The government of the Maldives has recently launched a tender for the installation of 15 MW of grid-connected solar PV systems across various islands, with support from the Asian Development Bank.²
• 21 MW Solar Tender: Another tender for 21 MW of solar capacity was announced, which includes 10 MW of floating solar projects.¹⁵
• 10 MW Floating Solar Tender: A tender for 10 MW of floating solar photovoltaic systems in Addu City is divided into two lots: 2 MW at Maradhoo Port and 8 MW at Hithadhoo Port.¹⁶
• 12.5 MW Tender: The government of the Maldives recently opened a tender for the installation of 12.5 MW of grid-tied solar PV systems on selected islands, supported by the Asian Development Bank.¹⁷

• The average salary in the Maldives generally ranges between $390 and $715.¹⁸
• Solar Photovoltaic Installer: the average monthly salary is approximately $750.¹⁹
• Solar Energy Systems Engineer: the average monthly salary is approximately $1,153.²⁰

The current population of Maldives is 528,098.²¹

Estimate for Factory Rent

Industrial factory rent prices in Maldives are approximately $1 – $2 per square meter per month, for long term rent.^{22 23}

Industrial Electricity Rates

The electricity price for non-household consumers in the Maldives is around $0.45 per kWh, which is among the highest in South Asia.²⁴

Water Costs

The water price for industrial use in the Maldives is approximately $6.6 per cubic meter (m³).²⁵

Salaries and Wages

Worker of solar industry in Maldives earn between $750 and $1,153 monthly, depending on the position.¹⁹²⁰

Rent for Office Space

Rental prices for commercial office spaces in the Maldives vary significantly based on location and size. Prices range approximately from $20 to $35 per m2.²⁶

Insurance

The average spending per capita in the non-life insurance market in Southern Asia is estimated to be $62.13 in 2024.²⁷

²²⁸²⁹

Energy Mix

The Maldives relies primarily on diesel for electricity generation, with only 4% of installed renewable energy capacity. The government aims to diversify its energy mix by incorporating solar, wind, and ocean energy, alongside potential green hydrogen production.

Infrastructure and Interconnections

The energy infrastructure is heavily dependent on imported diesel, making it vulnerable to price fluctuations. Hybrid systems combining renewable energy and energy storage are critical for enhancing resilience. Plans are in place to establish interconnections with India to facilitate renewable energy transport.

Export and Import

The Maldives imports nearly all its energy needs, primarily in the form of diesel.

Policy Goal

The Maldives aims for a 10% reduction in greenhouse gas emissions by 2030, with a roadmap to increase renewable energy’s share in the energy mix significantly. The government is committed to integrating climate risk into development policies and enhancing energy security through diversification.

The regulations surrounding solar panel production in the Maldives are primarily governed by the Maldives Energy Act, which emphasizes the promotion of renewable energy. Key points include:³⁰³¹

• Licensing: Permits are required for electricity production and services, including solar energy. Service providers must arrange to feed renewable energy into the grid.
• Net Metering: Regulations allow residential and commercial users to generate their own solar power and sell excess electricity back to the grid, effectively reducing their energy costs.
• Local Content: The Act prioritizes local inventions and labor in renewable energy projects, although specific restrictions are not detailed.
• Standards and Compliance: Installation companies must ensure compliance with technical standards, and the Ministry of Environment is tasked with establishing production targets for renewable energy.

The Maldives government has taken several initiatives to promote solar panel production and adoption in the country:^10162832

Investments and Subsidies

• The government has abolished import duties on renewable energy products to encourage adoption of solar technologies.
• Tax incentives and duty exemptions are provided to local and international private investors in the clean energy sector.
• Subsidies, concessional financing, and duty concessions are made available to ensure affordability of solar energy supply.

Policy Support

The ‚Maldives National Energy Policy and Strategy 2010‘ highlights the ability of renewable energy sources like solar to meet the country’s energy needs.

The policy aims to attract private sector participation in clean energy through incentives and access to green funds.

Collaborative Initiatives

In 2022, India and Maldives announced plans to set up a transmission interconnection to facilitate transport of renewable energy between the two countries.

The World Bank and Asian Development Bank are providing development financing for renewable energy projects in the Maldives.

POISED Project in Thaa Atoll

This initiative involves the installation of 12 solar PV hybrid systems across 12 islands, totaling 2.5 MW of solar capacity and 1.9 MW of battery storage. It is expected to save 1.2 million liters of diesel annually and reduce carbon emissions by 3,300 tonnes.⁵

Swimsol’s Floating Solar Projects

Swimsol has pioneered floating solar technology, launching the world’s first floating solar power plant in the Maldives. This innovative approach allows solar energy generation at sea, overcoming land limitations.¹¹

15 Solar Power Projects

The Maldives government has commissioned 15 solar power projects across 14 islands, with capacities ranging from 1 MW to 5 MW. These projects include battery energy storage systems to ensure reliable power supply.³³

⁵³⁴³⁵

Swimsol

• Headquarters: Vienna, Austria
• Website: swimsol.com
• Details: A leader in offshore solar technology, Swimsol has developed the world’s first floating solar power plant, SolarSea, and specializes in island micro-grids and heavy-duty tropical solar PV systems. They have installed solar systems at various resorts, enhancing renewable energy capacity in the Maldives.

Avi Technologies

• Headquarters: Male‘, Maldives
• Website: https://avitech.com.mv/
• Details: The company offers solar panel installation services and focuses on integrating battery storage solutions, contributing to the growing solar infrastructure in the Maldives.

Renewable Energy Maldives

• Headquarters: Male‘, Maldives
• Website: https://renewableenergymaldives.com.mv/
• Details: Established in 2012, this company is involved in solar panel installations and supports the transition to renewable energy sources across the country.

Fenaka Corporation

• Headquarters: Male‘, Maldives
• Website: fenaka.mv
• Details: This state-owned enterprise plays a crucial role in implementing solar projects, including the recent installations in Thaa Atoll as part of the POISED project, which aims to electrify islands with solar PV hybrid systems.

Soneva Fushi

• Headquarters: Male‘, Maldives
• Website: soneva.com
• Details: The resort has installed the largest solar power plant in the Maldives, committing to a net-zero carbon footprint and showcasing sustainable energy practices to other resorts.

Ecogreen Maldives

• Headquarters: Omadhoo, Maldives
• Website: https://www.ecogreenmaldives.com/
• Details: The company is specializing in sustainable waste management and environmental solutions in the Maldives, offering services like recycling, waste collection, and consultation on eco-friendly practices. Their mission is to promote environmental sustainability by reducing waste and fostering a green culture across the nation.