Maldives has been granted a loan worth $50 million for renewable energy projects to help the nation cut its reliance on oil-fuelled electricity.

The cash will be used to install solar-diesel hybrid grids on nearly 160 islands in four phases. Training and other related skills development support will also be provided.

Maldives spent more than $470 million (£292m) on oil imports in 2012, according to the Asian Development Bank (ADB).

Replacing inefficient diesel generators and improving distribution systems are expected to cut carbon emissions by around 40,000 tons a year.

Priyantha Wijayatunga, Principal Energy Specialist with ADB’s South Asia Department said: “The country’s total dependence on diesel fuel imports for power generation is putting a heavy burden on its finances and its environment.

“Our assistance will support a project to install new hybrid electricity systems that will provide cleaner, more reliable electricity and reduce the current cost burden.”