Ministry of Environment has said today that the relocation of the solar panels currently on the Malé - Hulhumalé Highway would present financial challenges to the State.
President-elect Dr. Mohamed Muizzu has announced yesterday that these solar panels will be relocated to designated islands.
In response to this statement, an official of the Environment Ministry said that the transitional committee had not brought up any discussions with them regarding the relocation of the Solar PV System installed in the Hulhumalé Link Road under the Accelerating Sustainable Private Investment In Renewable Energy (ASPIRE) Programme.
The official stated that while Dr. Muizzu announced the relocation at a public event, no practical discussions have taken place with the ministry yet. They added that they believed the President-elect, once his administration is in government, would consult with the technical teams working on the program at the ministry, the investor, and the World Bank if he intends to proceed with the relocation.
The official shared that ninety five percent of the work on the project has been concluded. Currently, work is being conducted to connect it to STELCO's grid.
"Because of this, there are going to be some financial implications if we are to change the location now. We will know an estimated cost once we are aware of the locations the incoming government has in mind to move the panels to," they said.
The programme, being funded with the aid of the World Bank, costs USD 11 million (MVR 169 million). According to the ministry, the cost of the project is borne by the investor, and the State is not bound to spend any funds on it. The investor will recover their investment through the sale of solar photovoltaic (PV) power from solar to the grid. The fixed rate is at US cents 1.9 per unit of electricity, or USD 0.109 per kilowatt.
Speaking to the public at an event held in Hulhumalé 1 yesterday, Dr. Muizzu said that the current placement of the solar panels block the view from the highway, which is the place that should offer the best views of the ocean in the Malé area. He said that the solar panels being located there takes away from the beauty of the place, and results in making the area seem too closed off.
"Renewable energy is important. It's something I will also give priority to. Climate change and environment are policies we will prioritize. But just like there is a proper way to do that, there is a proper way to do this too," Dr. Muizzu said.
He said that for this reason, he will ensure that the solar panels are removed from their current spot and relocated to a small or medium island or two after conferring with the investors.
The 5 megawatt solar energy project is being conducted by Thailand based company Ensys Co. Ltd. The company was handed over this project in November, 2020 and commenced work in December, 2023.
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