Environment Minister assures slicing oil expenditure

Minister of Environment, Climate Change and Technology, Ms. Aminath Shauna has claimed the expenditure on oil will be significantly sliced by the end of current presidential term.

According to the minister, around the culmination of President Ibrahim Mohamed Solih's presidential term in 2023, the state is expected to spend MVR225 million less on oil purchase.

The minister's comments came after signing with World Bank to initiate a large-scale renewable energy project targeted at the six most densely populated islands in the Maldives.

Moreover, Ms. Shauna remarked that the state's "Accelerating Sustainable Private Investment in Renewable Energy" (ASPIRE) will greatly reduce the state expenditure on annual oil purchases.

Furthermore, the minister delineated that the large-scale initiative will generate 18 million units of electricity in annual terms, which will cut approximately MVR4.8 million on annual terms used to purchase diesel for the purpose of powering up generators to produce electricity.

In addition to this, Ms. Shauna is hopeful that the expenditure of the state on diesel purchases can be brought down by MVR39 million.

"Right now, oil prices in the global market have inflated significantly. For a small nation like ours, investing on a renewable energy initiative at a time will ensure we remain prepared," Ms. Shauna remarked.

She noted that if the current global market prices on oil are factored in, then the Maldivian government stand to save close to MVR55 million in oil purchases, while over 12,694 metric tons of toxic gas can be prevented from emission.

The Maldives is currently focused on achieving net zero by 2030, while the government's "ASPIRE" initiative will reportedly create over 55.5 Mega-Watts of energy through solar energy.

Under the agreement signed on Tuesday will ensure renewable energy systems capable of harnessing 11 Mega Watts of electricity will be installed in six of the designated local islands.

Maldives government contracted the joint-venture between Malaysia's Mega-First Power Industries SDN and Power China Hua Dong Engineering Corporation.