Maldives is home to half a million people spread across 186 of its 1,192 small islands. It faces significant challenges due to its geographical dispersion and reliance on fossil fuels.  

The country’s economy is heavily dependent on tourism. In addition to the inhabited islands, 168 other islands operate as self-contained tourist resorts. The economic growth driven by tourism has led to a doubling of electricity demand in the past 15 years. While all inhabited islands achieved universal energy access in 2008, power generation remains dependent on imported diesel, making energy costly. 

Currently, Maldives has an installed capacity of 600 megawatts (MW), with most islands transitioning from pure diesel to hybrid solar-diesel power systems. Some resort islands have also adopted floating solar systems. ADB’s previous initiative, the Preparing Outer Islands for Sustainable Electricity Development (or POISED) project, laid the groundwork for hybrid solar-diesel power systems by installing solar panels, energy storage batteries, energy management systems, and upgraded grid networks on 160 islands. POISED will have delivered 28.0 MW of solar power and 12.5 MWh of energy storage by its completion in 2025. 

To ensure economic resilience, Maldives must diversify its energy mix, create jobs, and reduce dependency on imported fuel. Renewable energy offers a viable pathway to achieving these goals while addressing rising energy costs and environmental concerns.

At the 29th session of the Conference of the Parties in 2024, Maldives committed to generating 33% of its electricity from renewable sources by 2028. As of December 2024, 68 MW of solar photovoltaic (PV) capacity had been installed, with funding secured for another 90 MW. However, meeting the 33% target would need 300 MW of solar PV within the next 4 years. 

Several factors challenge this target—public borrowing capacity, rising costs, and increasing diesel subsidies. From 2017 to 2023, diesel usage for power generation surged by 56%. Fossil fuel imports—including diesel, petrol, liquefied petroleum gas, and aviation fuel—now account for approximately 13.5% of the gross domestic product. Additionally, extreme weather events frequently disrupt fuel shipments, food supplies, and essential goods, underscoring the urgency of a more resilient energy system.

Building on the success of the Preparing Outer Islands for Sustainable Electricity Development project, ADB and its partners have embarked on the Accelerating Sustainable System Development Using Renewable Energy (or ASSURE) project. ASSURE offers many cross-sector development opportunities bolstering a just renewable energy transition, including but not limited to strengthening the energy–water–food nexus, partnering with universities to train future professionals, and supporting income-generation activities for women through innovative renewable energy solutions in farming.  

With support from ADB and partners Asia-Pacific Climate Finance Fund, Clean Technology Fund, Climate Change Fund, Japan Fund for the Joint Crediting Mechanism, and private sector entities, the project focuses on boosting renewable energy use and enhancing energy efficiency across 20 targeted islands in Maldives. Specifically, it aims to  

• expand solar energy by installing 20 MW of solar capacity and 40 MWh of energy storage across 20 islands; 
• increase rooftop solar capacity with an additional 6 MW; 
• explore new renewable technologies by piloting ocean, wave, and small wind energy solutions; and 
• enhance energy efficiency through advanced battery storage solutions.  

The project integrates emerging technologies such as floating solar, small wind, ocean/wave energy, and advanced flow battery systems to address space constraints and reliance on single technologies. By diversifying the energy mix, the ASSURE project aims to enhance long-term energy resilience and security.

ASSURE goes beyond power generation. The project promotes awareness and inclusivity through public consultations, training, career guidance sessions, and gender-inclusive microenterprise opportunities, focusing on education and professional opportunities for women in the energy sector. 

ASSURE also supports cross-sector planning by expanding the initial interventions of the Preparing Outer Islands for Sustainable Electricity Development project to include the energy–water–food nexus and sustainable agriculture through water desalination plants for irrigation. Training and capacity building are also key components in preparing the future workforce for energy transition.