The Maldives government has signed a deal with a Chinese company to set up 15 megawatts of solar generation together with battery storage, the Ministry of Climate Change, Environment and Energy said on Monday.

The company, Zhejiang Chingtian Solar Energy Technology, will install a 15-megawatt solar photovoltaic system and a 15 megawatt-hour battery energy storage system, according to the ministry.

Hussain Ageel Naseer signed the document on behalf of the ministry, while company vice president Dongting He signed for the Chinese firm.

The ministry described the deal as an important step towards strengthening the national electricity grid and expanding the country's ability to store power from renewable sources. Battery storage allows solar energy generated during the day to be used later, reducing reliance on diesel generators.

The ministry did not say where the systems will be installed, how much the project will cost or when work will be completed.

The government has set a target of generating 33 percent of the country's electricity from renewable sources by the end of its term. President Mohamed Muizzu announced the goal at the COP28 climate summit in December 2023, saying around USD 600 million would be needed and that international support would be required.

Last month, Environment Minister Ali Shareef said the government had raised installed renewable capacity from 53 megawatts to 126 megawatts, a change he said would cut diesel use by about 3.1 million litres a year.