Accelerating Sustainable Private Investment in Renewable Energy Project

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The objective of the of Accelerating Sustainable Private Investments in Renewable Energy (ASPIRE) Project for Maldives is to increase PV generation through private sector investment. The Project continues to implement three components: (1) technical assistance support to Government of Maldives, (2) structuring and delivery of tariff buy downs for currently planned and subsequent subprojects, and (3) a security package consisting of: (i) escrow accounts to cover payment defaults by the offtaker under the subproject power purchase agreements (PPAs), and (ii) IDA guarantees to partially backstop the payment by the Government of subproject termination payments. IDA funding is used for this guarantee support only, covering partial termination payments as part of the security package under Component 3. Grant from the Scaling-up Renewable Energy Program (SREP) is used for all other components, including to fund escrow accounts as part of the security package under Component 3 to be used for short-term payment shortfalls.