Abraxas Power Corp. announced the start of coastal and reclamation works on the support islands for Solar City, the Maldives’ first Special Economic Zone (SEZ), featuring a 100-megawatt floating solar power plant. The environmental approval obtained in November officially authorises the launch of physical implementation activities.
Located approximately four kilometres offshore from Hulhumalé, the project relies on a floating solar platform connected to the national grid via a submarine cable. Initial works include the stabilisation of land required for the energy infrastructure and associated SEZ components.
Over USD100mn invested in the energy component
The total investment in the solar power facility is expected to exceed USD100mn, while the complete SEZ development will reach over USD187mn. The project is led by APM SPV Pvt Ltd, majority-owned by Abraxas and designated as the dedicated project company.
Initial regulatory permits were issued in April 2024, followed by the SEZ permit in February 2025 and the investment agreement signed on 1 July 2025. These regulatory milestones now enable Solar City to move from planning into active implementation.
Grid connection and economic objectives
The project, the first of its kind in the Maldives, will introduce new energy capacity and reduce the country’s reliance on imported fuels. The installation will supply power directly to the national grid and support official objectives for economic diversification.
Local stakeholders, including national law firms, played a role in finalising the investment agreement. The project contributes to national targets to generate 33% of electricity from renewable sources.
The commencement of works marks a critical operational phase for Abraxas and represents a first-of-its-kind energy infrastructure in the island nation. The planned offshore connection will also require the development of additional maritime and onshore infrastructure in the coming months.
