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BookItem Preparing outer islands for sustainable energy development : Maldives’ experience in deploying advanced hybrid renewable energy systems(Asian Development Bank , 2024-08) Asian Development Bank; އޭޝިއަން ޑެވެލޮޕްމަންޓް ބޭންކްMini-grids powered by diesel generators have been used to accelerate rural electrification in the inhabited islands in Maldives. However, diesel generators are expensive to operate and maintain. Hybridizing existing diesel-powered mini-grids with renewable energy sources offers a flexible and cost-effective means of transforming the energy landscape of the country to become more economically and environmentally sustainable. The Preparing Outer Islands for Sustainable Energy Development (POISED) project was inaugurated on 19 January 2015. It is the largest renewable energy intervention ever undertaken in Maldives. The Asian Development Bank (ADB) coordinated and largely supported the project to reduce the country’s dependence on fossil fuel for power generation in the outer islands. The project aimed to introduce sustainable energy in the outer islands, thereby helping to reduce the cost of electricity, minimize CO₂ emissions, achieve considerable fuel savings, and reduce the burden of electricity subsidies on the government budget. There were two specific outputs identified in the project design: Output 1: Renewable-energy-ready grid systems developed for outer islands and the greater Malé region, which include design and installation of equipment for solar–diesel hybrid grids on about 160 islands. Initially, five sample subprojects and a control center were to be developed. Output 2: Capacity of the Ministry of Environment and Energy, STELCO, and FENAKA enhanced to implement renewable energy grid interventions. The project entailed converting existing diesel-based electricity grids in 160 inhabited outer islands across the 20 atolls into renewable diesel hybrid power systems. A minimum of 21 megawatt-peak (MWp) of solar photovoltaic (PV) capacity was installed. The expected electricity generation by the solar PV systems was 27,600 megawatt-hour (MWh) per annum, offsetting 19,623 tons of CO₂ emissions annually.