Maldives signs MOU with Chinese firm for solar and battery storage following policy shift

The Ministry of Climate Change, Environment and Energy has signed a memorandum of understanding with China’s Zhejiang Qingtian Solar Energy Technology Company Limited to set up a 15-megawatt solar photovoltaic system along with a 15-megawatt-hour battery energy storage system across the country.

The agreement was signed by Deputy Minister Hussain Ageel Naseer on behalf of the ministry, while Acting Vice President Dongting He signed for the Chinese firm. The project aims to strengthen island electricity grids and expand the capacity to store renewable energy, supporting the government’s target of meeting 33 percent of national energy needs through renewables by 2028.

The signing comes shortly after the Environment Minister addressed concerns about limits on solar power adoption during the "Ahaa" public forum held by the President’s Office and PSM. A member of the public had questioned why island solar quotas remain capped despite high diesel expenditure and the launch of the "Magey Solar" scheme for homes and businesses.

Responding to the question, the Minister Ali Shareef explained that the current 30 percent quota on islands is a technical necessity to prevent blackouts, not an intentional restriction. Because solar power fluctuates depending on sunshine and drops sharply when clouds pass overhead, grids require a safety buffer so backup generators can pick up the load within split seconds without cutting power.

Going forward, the government will require all new solar installations nationwide to be paired with battery energy storage systems, halting standalone solar projects. Grid upgrades and battery storage will act as a buffer during sudden drops in generation, giving diesel generators time to stabilize. As storage capacity expands, the government plans to raise solar quotas for homes and businesses under the "Magey Solar" initiative.