The funds will be used to develop projects in various developing countries like the Republic of Ecuador, Sierra Leone, the Maldives, Mauritania, Samoa, and Mali.

The projects financed under the concessional loans are said to have a combined capacity of 35MW and are expected to offer sustainable power to rural communities, which are currently lacking access to modern energy services.

IRENA girector-general Adnan Amin said the selected projects bring power to isolated off-grid populations, in some cases for the first time.

"This will stimulate local economic development and raise living standards," Amin added.

"Financing is one of the key issues renewable energy is facing, particularly in the developing world.

"That is why IRENA and ADFD teamed up to de-risk investments in promising renewables projects."

The UAE government is also planning to offer funding of $350m in concessional loans through ADFD to support the deployment and sustainable use of all forms of renewable energy in developing countries.