The Government of Maldives has awarded a contract to a Chinese consortium to install 38 megawatts (MW) of battery energy storage systems (BESS) across 18 islands, in a bid to enhance renewable energy capacity and reduce dependence on fossil fuels.

The project forms part of the Ministry of Tourism and Environment’s Accelerating Sustainable System Development Using Renewable Energy Programme, aimed at meeting President Dr Mohamed Muizzu’s national target of sourcing 33 percent of electricity from renewables by 2028.

The agreement was signed this week between Tourism and Environment Minister Thoriq Ibrahim and Wang Yong, General Manager of Xijiazhuang Kalin Electric Co., Ltd., one of the joint venture partners. The project will be executed by Gaudian Nanjing Automation Co., Ltd., in partnership with Kalin Electric and Sino Soar Hybrid (Beijing) Technology Co., Ltd.

Under the project, battery systems ranging from 500 kilowatt-hours (kWh) to 3,000 kWh will be installed on selected islands, allowing for more solar PV integration and grid stability. The Ministry stated that the new storage capacity will support the broader Magey Solar Programme, which promotes rooftop solar installations across households and commercial buildings.

The Ministry estimates that the deployment of the BESS will save 8.4 million litres of diesel annually, cutting national fuel costs by approximately MVR 125 million (USD 8 million) per year.