VZCZCXRO9578
RR RUEHBI RUEHLMC
DE RUEHLM #0056/01 0110831
ZNR UUUUU ZZH
R 110831Z JAN 08
FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC 7490
INFO RUEHKA/AMEMBASSY DHAKA 0630
RUEHIL/AMEMBASSY ISLAMABAD 7618
RUEHKT/AMEMBASSY KATHMANDU 5798
RUEHNE/AMEMBASSY NEW DELHI 1710
RUEHGP/AMEMBASSY SINGAPORE 5715
RUEHBK/AMEMBASSY BANGKOK 3362
RUEHCG/AMCONSUL CHENNAI 8224
RUEHBI/AMCONSUL MUMBAI 5786
RUCPDOC/USDOC WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION

UNCLAS SECTION 01 OF 02 COLOMBO 000056 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR SCA/INS AND OES 
COMMERCE FOR JONATHAN STONE 
TREASURY FOR LESLIE HULL 
 
E.O. 12958: N/A 
TAGS: ETRD EINV SENV PREL MV
 
SUBJECT: MALDIVES: PRESIDENT AND AMBASSADOR LAUNCH PILOT RENEWABLE 
ENERGY PROJECT USING U.S. TECHNOLOGY 
 
REF: COLOMBO 0039 
 
¶1. (SBU) Summary:  Ambassador joined Maldives President Gayoom 
January 7 for the commissioning of a pilot renewable energy project 
that uses turbines produced by U.S. company Southwest Windpower. 
The hybrid wind/solar/diesel micro-grid power systems replace the 
inefficient generators that most Maldivian islands use to produce to 
power.  The $3 million pilot project has been running successfully 
on three islands for three months, demonstrating that renewable 
sources are feasible for energy production in Maldives.  If the 
project continues successfully for another three months, Maldives 
authorities intend to invest $90 million to install similar systems 
on 90 more residential islands around the Maldives -- offering the 
potential for $60 million in U.S. exports.  The system's developer 
and contractor, Daily Life Renewable Energy, of Singapore, recently 
incorporated in the United States in order to strengthen its 
partnership with Southwest Windpower.  End summary. 
 
¶2. (U) On January 7, Ambassador joined Maldives President Gayoom for 
the formal launch of a pilot renewable energy project on the far 
northern residential island of Uligam.  The event marked the 
official commissioning of a unique hybrid wind/solar/diesel energy 
system developed by Singapore-U.S. company Daily Life Renewable 
Energy.  The system produces 48kw of electricity, which is 
distributed through a small power grid to Uligam's 200 households 
and public buildings.  Maldives State Trading Organization, the 
investor in the new system, hosted island residents, three ministers 
(Housing and Urban Development; Planning and National Development; 
and Environment, Energy, and Water) and other officials for the 
event, at which the president officially pressed the switch turning 
on the new system. 
 
UNIQUE SYSTEM IDEALLY SUITED TO MALDIVES ISLANDS 
--------------------------------------------- --- 
 
¶3. (U) Maldives' 195 residential islands currently all depend on 
diesel-powered generators to produce electricity for residential and 
public use.  Most islands are home to a few hundred households and a 
handful of public buildings such as schools, health centers, 
mosques, and local government offices.  Because the islands are 
widely dispersed, a national electricity grid is impossible.  The 
typical island requires only about 50 kilowatts of electricity to 
meet its needs.  Diesel generators are inefficient for this purpose, 
as they often run over or under capacity.  They are also loud and 
dirty.  With rising oil prices, diesel fuel costs are high. 
Finally, because the fuel must be delivered by ship to individual 
islands in drums, delays in deliveries can leave the islands without 
power. 
 
¶4. (U) Maldives' islands, with often sunny, breezy weather, are 
well-suited to use wind and solar power, however.  Additionally, the 
low-lying island nation has been a vocal proponent of efforts to 
prevent sea-level rise, which could eventually submerge the country. 
 The State Trading Organization, acting on President Gayoom's calls 
for reduced carbon emissions worldwide, determined that renewable 
energy made both commercial and environmental sense for Maldives. 
It commissioned Daily Life Renewable Energy to design and install a 
three-island pilot project to test the viability of renewable energy 
systems. 
 
¶5. (U) Daily Life is the Asia distributor of wind turbines 
manufactured by U.S. company Southwest Windpower.  Daily Life, which 
had developed renewable energy systems for a number of small Pacific 
islands states, approached STO subsidiary Maldive Gas in 2006 to be 
a partner in developing a nationwide renewable energy project.  The 
partnership has been boosted by Southwest Windpower's participation 
in the American Pavilion at the annual Maldives Hotel and Trade 
Exhibition (reftel). 
 
¶6. (U) The Daily Life system combines 15-30 small wind turbines, an 
array of solar panels, a diesel or liquid propane gas generator, and 
storage batteries all controlled by a computer which regulates power 
to the island grid.  The batteries enable excess power to be stored 
and used when wind or sun is low.  The generator supplements the 
renewable sources when needed.  According to Daily Life, the 
 
COLOMBO 00000056  002 OF 002 
 
 
"AC-coupled Micro-Grid Hybrid Distributed Generation System" is the 
first of its kind in use worldwide. 
 
¶7. (U) Daily Life installed the systems on the Maldives islands of 
Uligam, Raimandhoo, and Kondey during 2007.  The three systems have 
been functioning since September 2007, with a total installed 
renewable energy capacity of 120kW -- meeting the entire residential 
power requirements of all three islands.  Additionally, the systems 
provide about half the total energy requirements of non-residential 
users such as hospitals, schools, government offices, and 
telecommunications providers.  The $2.85 million pilot project 
includes U.S. components worth about $1.7 million.  The pilot 
project was financed by a loan from the New York branch of Societe 
Generale bank to the Bank of Maldives, which lent the funds to the 
State Trading Organization. 
 
EXPANSION TO 90 ISLANDS COULD GENERATE 
$60 MILLION IN US EXPORTS 
-------------------------------------- 
 
¶8. (SBU) If the pilot project continues to operate successfully for 
an additional three months, the State Trading Organization and the 
Maldives Ministry of Environment, Energy, and Water intend to 
install similar systems on an additional 90 residential islands 
around Maldives.  Societe Generale has offered financing for this 
nearly $90 million expansion, which would be guaranteed by the U.S. 
Export-Import Bank. 
 
¶9. (U) Importantly, the systems are commercially viable.  Initial 
projections from the pilot systems indicate that revenue will cover 
the cost of the systems in twelve years, making the systems 
economically viable using fifteen-year financing.  The proposed 
financing for the main 90-island project would involve Societe 
Generale lending to Maldives Ministry of Finance and Treasury on a 
sovereign basis.  The Ministry would then finance, possibly through 
the Bank of Maldives, the State Trading Organization as the 
implementing agency. 
 
COMMENT: U.S. TECHNOLOGY DELIVERS THE 
FUTURE OF CLEAN ENERGY 
------------------------------------- 
 
¶10. (SBU) President Gayoom speaks frequently about the risks 
Maldives faces from sea-level rise, saying for example, "My message 
is a simple one -- take global warming and climate change more 
seriously.  Act now, before it becomes too late to save not only the 
low-lying islands but the entire planet."  This renewable energy 
project in Maldives demonstrates the future of clean energy 
investment in the developing world, with U.S. technology providing 
the solutions.  It also demonstrates the enormous export potential 
of U.S. environmental and clean energy technology.  The potential 
$60 million worth of U.S. exports for the Maldives-wide project 
would amount to about four times the current $17 million annual U.S. 
exports to Maldives.  The Ambassador, in his remarks at the Uligam 
launch event stated, "I am proud that American technology is helping 
the Maldives become a leading example of a country shifting to clean 
energy sources to reduce greenhouse gas emissions." 
BLAKE