Government Issues First Special Economic Zones Permit for Floating Solar Project
Photo: Envato
The government has issued its first Special Economic Zones (SEZ) Permit under the Special Economic Zones Act to develop the Floating Solar Project.
In a press release, the Board of Investments (BOI) announced that the permit was granted to a Special Purpose Vehicle incorporated in the Maldives by Canadian company Abraxas Power Corp. This permit allows the company to develop and operate a 100 MW floating solar photovoltaic (PV) project approximately 4–5 km off the coast of Hulhumalé.
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The initiative is part of Project Solar City, a key component of President Dr Mohamed Muizzu’s plan to generate 33 percent of the Maldives’ energy from renewable sources by 2028. The project was launched last year following an agreement between the Maldivian government and Abraxas Power Corp to commence the first phase of operations.
The Board of Investments (BOI) issued the first development permit under the SEZ Act for a large-scale floating solar project in the Maldives. This supports President Dr. Muizzu’s vision for a greener nation and contributes significantly to his goal of sourcing 33% of the… pic.twitter.com/wVltbSwd8V— Ministry of Economic Development and Trade (@MoEDmv) February 13, 2025
Currently, fuel accounts for 22 percent of all imports to the Maldives, with 80 percent of it used for electricity generation.
According to the BOI, the project includes investments in battery storage and a submarine cable interconnection to link the floating solar plant with Hulhumalé’s main power grid. Abraxas Power Corp aims to begin mobilisation by April this year and expects the facility to be fully operational by 2027.
Previously estimated to cost approximately MVR 1.6 billion, the project is expected to enhance the Maldives’ energy security while advancing its renewable energy goals.
The BOI stated that issuing the permit marks a significant milestone in the government’s efforts to promote sustainable energy solutions in the country.
