The Ministry of Economic Affairs has granted development approval for a floating solar panel project in a lake in K. Atoll. This marks the first initiative under the Special Economic Zone (SEZ) Act, with initial approval given to the Canadian company Abraxas Power Corporation on April 24, 2024.

The project site is located four kilometres from Hulhumale', where plans for an industrial hub and commercial real estate development are also in place. The total investment for the project is approximately USD187 million, with USD100 million allocated for solar energy systems and the remaining USD87 million for real estate and industrial activities.

Originally expected to generate 150 MW of power, the project will now develop a 100 MW power generation system. The initiative is projected to save USD42 million annually in electricity generation fuel costs. Work on the project is set to commence this year, with full operationalisation expected by 2027.

This development aligns with President Dr Mohamed Muizzu’s commitment to transitioning 33 percent of the country's energy consumption to renewable sources by 2028. The floating solar project is expected to play a significant role in achieving this target while promoting sustainable energy solutions in the Maldives.