The People's Majilis has approved a motion to reduce the cost of electricity.
The motion, reviewed by the parliament's Environment and Climate Change Committee, was passed with the vote of 67 members.
The committee - after reviewing the motion - has finalised to launch a solar panel installation program in collaboration with local councils, banks, and the Ministry of Environment.
This includes arrangements with the Bank of Maldives (BML) to issue loans for solar panel installation at a five percent interest rate to all interested citizens. As such, the committee has previously highlighted that loans for solar panel installation have been available through BML's Green Fund at an interest rate of 11%, but the programme did not receive much recognition.
Additionally, the committee has determined to annually allocate MVR one million for each local council starting from 2020 from the funds apportioned to develop sustainable energy.
Moreover, the committee has determined to instruct the Ministry of Environment to review legislation that impedes the development of sustainable energy, and present a report to the committee within three weeks.
The committee's review of the motion found that the Maldives' dependence on oil and gas has been an obstacle to the country's development. Likewise, the report highlights that approximately 10% of the country's GDP is spent on diesel and that the state spends almost MVR one billion in subsidies to reduce the cost of electricity.
Reducing the cost of electricity is one of President Ibrahim Mohamed Solih's campaign pledges.