The Maldivian Government has issued its first Special Economic Zone (SEZ) permit under the SEZ Act, marking a major step forward in the nation’s renewable energy transition.

Granted through the Board of Investments (BOI) under the Ministry of Economic Development and Trade, the permit paves the way for Project Solar City—a pioneering large-scale floating solar photovoltaic (PV) initiative.

The permit has been awarded to a Special Purpose Vehicle (SPV) incorporated in the Maldives by the Canadian firm Abraxas Power Corp, a company with extensive experience in renewable energy solutions.

This project is closely aligned with President Dr Mohamed Muizzu’s vision of securing 33 per cent of the country’s electricity from renewable sources, supporting a more sustainable and energy-independent future.

As part of Project Solar City, a 100MW floating solar PV farm will be developed in a lagoon located approximately 4–5 kilometres from Hulhumalé.

In addition to the solar installation, the project will include battery storage infrastructure and a submarine cable interconnection to integrate with the main power grid in Hulhumalé.

This initiative is expected to play a crucial role in reducing the country’s dependence on imported fossil fuels. In 2023, fuel imports accounted for 22 per cent of total imports, with 80 per cent of this used for electricity generation and marine transport. By shifting towards renewable energy, the project is projected to save the Maldivian economy an estimated USD 42 million annually on fuel costs.

Beyond renewable energy infrastructure, the permit also allows for additional developments, including commercial real estate and an industrial hub; however, as a condition of the permit, priority must be given to investments in renewable energy components.

With over USD 100 million dedicated to the renewable energy segment, the total estimated investment for Project Solar City amounts to USD 187 million. The initiative will be implemented in full compliance with the requirements set out under the Presidential Decree issued in accordance with the SEZ Act.

The developer aims to begin mobilising the project by the end of April 2025, with the goal of reaching operational status by 2027.