The Maldives spent approximately MVR 10 billion on oil imports last year, with the imports accounting for around 10 per cent of the country’s Gross Domestic Product (GDP), according to the Ministry of Climate Change, Environment and Energy.

Speaking at a press conference held at the President’s Office, Director General Ahmed Ali said the Maldives remains heavily dependent on imported oil for energy generation, making the country vulnerable to fluctuations and disruptions in the global oil market.

He noted that the amount spent on fuel imports could otherwise finance several development projects across inhabited islands. He added that continued dependence on oil means international market shocks directly impact the Maldivian economy and the cost of energy production.

Referring to commitments announced by President Dr Mohamed Muizzu during the COP28 climate summit in 2023, the Director General said the Government is working towards generating 33 per cent of the Maldives’ electricity through renewable energy by 2028. He stressed that reducing reliance on imported oil would require greater use of renewable energy resources available in the Maldives, alongside efforts to minimise energy wastage.

According to the ministry, energy policies and strategic priorities for the 2024–2029 period have already been formulated, together with a roadmap aimed at achieving the Government’s renewable energy targets.

The ministry further revealed that the installed capacity of renewable energy systems in the Maldives has increased from 53 megawatts to 110 megawatts over the past two years. Authorities are also working to establish 164 megawatts of solar power systems across 101 islands, alongside 158 megawatts of battery energy storage capacity under ongoing projects nationwide.