The Asian Development Bank (ADB) on Monday announced a solar energy initiative that aims to inject $9 billion into the regional market and generate some 3,000 megawatts (MW) of solar power over the next three years.
ADB plans to provide $2.25 billion in finance to theAsia Solar Energy Initiative (ASEI), which is expected to leverage an additional $6.75 billion from the private sector and regional governments.
The Initiative will make available a range of projects, and finance and
knowledge-sharing mechanisms to attract commercial banks and the
private sector investment.
In addition to direct
financing, ASEI will set a target of raising $500 million from donor
countries to "buy down" the high up-front capital costs of investing in
solar energy, as well as design other innovative ways to attract
private-sector investment.
Energy demand in the Asia and Pacific region is expected to nearly double by 2030.
ADB Managing Director General Rajat Nag said sustainable solar energy can be the clean power of the future in the region, if there are appropriate incentive and financing mechanisms in place.
"Given Central Asia’s growing demand for electricity, the availability of desert land for large- scale solar energy development, and their stated commitment to offset high carbon emissions, several countries in the region are excellent candidates for ADB support through this initiative," Mr. Nag said.
ASEI will also establish and host the Solar Energy Forum, an international knowledge-sharing platform that will track solar development projects, discuss new solar power proposals and incentive mechanisms, and organize major conferences. The first conference of the Solar Energy Forum is scheduled for 5-6 July in Manila, Philippines.
Last year ADB provided nearly $1.3 billion for projects with clean energy components, exceeding its $1 billion target for the second year in a row. Starting in 2013, this target will increase to $2 billion a year.
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