Canadian company Abraxas Power Corp., through its local subsidiary APM SPV Pvt Ltd., has signed an investment agreement with the Government of the Republic of Maldives to launch a solar project with a total installed capacity of 100 megawatts (MW). This mixed-use energy generation project, named “Luminosity,” marks the first time that an official renewable energy permit has been issued by the Maldives Special Economic Zone Board of Investment under the Special Economic Zones Act (“SEZ Act”). The area designated by presidential decree thus becomes the first Special Economic Zone (SEZ) officially created under this Maldivian legislative framework. This operation constitutes a significant milestone for diversifying the local energy mix, historically dependent on imported fossil fuels.
Energy security and reduction of imports
The project aims to supply up to 50% of the Greater Malé region’s electricity needs entirely from renewable energy sources. It should thus reduce the country’s reliance on hydrocarbon imports, decreasing the pressure on its foreign exchange reserves. Currently, fossil fuel imports represent a substantial portion of national capital outflows. The Luminosity project also aims to ensure long-term price stability, independent from global market fluctuations.
In addition to electricity production, Abraxas Power Corp. indicates that the project includes components related to technology transfer and the sharing of international best practices in the energy sector. “This involves accelerating local infrastructure development through strategic investment, simultaneously strengthening the capabilities of local enterprises,” said J. Colter Eadie, Chief Executive Officer of Abraxas Power Corp. The framework agreement includes specific clauses to encourage the inclusion of local businesses and the development of skills required for sustainable facility management.
Contribution to Maldives’ climate commitments
The Luminosity project will also enable the Maldives to progress in their climate goals, officially announced by President Mohamed Muizzu during COP28. At that time, he pledged that 33% of national energy needs would be covered by renewable energies by 2028. The Luminosity project alone would represent a substantial share of this intermediate goal, while also contributing to the archipelago’s overarching objective of carbon neutrality by 2030.
According to information provided by Abraxas Power Corp., this operation will also directly address the Sustainable Development Goals (SDGs) defined by the United Nations Development Programme (UNDP). The project is particularly aligned with SDG 7, which calls for ensuring access to affordable, reliable, sustainable, and modern energy for all. The entire project is therefore consistent with the Maldivian government’s official priorities regarding energy security, sustainable economic development, and the fight against climate change.
