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Clean energy

Latin America and the Caribbean: seizing a trillion dollar opportunity in climate investments

Christian Grossmann's picture
 Alessandra Bazan Testino / IFC
Green-bond supported wind farm in Penonome, Panama. Photo credit: Alessandra Bazan Testino / IFC 


First published by Capital Finance International.

Soon the world will celebrate the one-year anniversary of the historic climate agreement signed in Paris in December 2015. The agreement will be implemented through country-led greenhouse gas (GHG) emissions reduction commitments known as their intended Nationally Determined Contributions (NDCs), which to date have been submitted by 189 countries covering 95 percent of global GHG emissions. 
 
Apart from signaling concrete commitments, these reduction targets also offer a clear signpost of the investment direction countries need to follow as the global economy steers towards a low-carbon, climate-resilient pathway. Estimates point to between $57 trillion and $93 trillion in new low-carbon, climate resilient infrastructure investment by 2030.[1] How developing countries evaluate and respond to their infrastructure needs will greatly determine their ability to meet GHG reduction commitments.

Climate Investment Funds: The quiet motor behind our most impactful climate investments

John Roome's picture

It does not happen often that one of the finest actors of our time tweets about a World Bank supported project and invites all his fans to have a look at the impressive pictures taken from space. In fact, I can’t remember having seen that before.
 
But this is what Oscar winner and climate activist Leonardo DiCaprio did a few months ago when the Noor Concentrated Solar Plant (CSP) in Morocco—the largest CSP plant in the world - was opened. Once finalized, in two years, it will provide clean energy to 1.1 million households. I visited the plant two weeks ago and it is truly an impressive site. The indirect benefits of the project might even be larger: it has advanced an important and innovative technology, it has driven down costs of CSP, and it holds important lessons for how public and private sectors can work together in the future.
 
I am proud that the World Bank, jointly with the African Development Bank and a number of foreign investors, supported this cutting-edge solar energy project. But it was made possible thanks to the Climate Investment Funds (CIF), which put in US$435 million to “de-risk” the investment, playing an essential role to kickstart the deal. 

Reflections on the Paris Agreement at a critical juncture for the CIF

Mafalda Duarte's picture



21 years is a long time. Long enough to raise a child and send him or her off to college. That is how long it has taken to get to the Paris Climate Agreement. The Paris Agreement does set a goal of holding the temperature increase to well below 2C and pursuing efforts to limit the increase to 1.5 C.  The latter goal is in line with what credible scientists have been telling us for a long time (only a 1.5C goal may prevent long-term multi-meter sea level rise, as an example).

African women help their communities go solar

Carolyn Lucey's picture

Also available in: Arabic | Spanish

Wamayo’s solar lantern has helped her tailoring business grow.



This number cannot be emphasized enough – more than 1 billion people around the world live without access to electricity, and 2.9 billion still cook with polluting, harmful fuel like firewood and dung.

As we celebrate Earth Day, we're looking at the ways to bring energy access to those communities and transform lives, and at the same time, protect our planet’s resources. How can we make sure that the right progress for communities is the right progress for the planet? 

The good news is that the world is constantly coming up with new technology to address this challenge. We have portable, phone-charging solar lamps and energy efficient cookstoves that are affordable and practical for communities living off-the-grid. The challenge now is how to make sure the right technologies are available in affordable and sustainable ways to the communities that need them most.

Solar Sister is a social enterprise that recruits, trains, and supports African women launch clean-energy businesses in their communities, selling lights and cookstoves to their neighbors. We are organized around the principle that women must be intentionally included in discussions around energy.

2007: Sunshine works: Solar gers and transparency

Jim Anderson's picture

In 2007, Mongolia’s economy grew at a double digit pace with modest inflation. The slump of the 1990s must have seemed a distant memory in the last full year before the elections in 2008.

The previous year saw several iconic projects approved, and 2007, the next year in our 25 years in 25 days reflection, did likewise.  The Renewable Energy for Rural Access Project (REAP) became effective in 2007 and was ultimately expanded.  The project brought a modern solution to a century old problem:  how can the benefits of electricity be harnessed to benefit the quarter of Mongolia’s people who are nomadic herders living in gers?  Connecting them to the grid was not a solution both because distances are vast and because nomadic people move around.  The modern solution was to give the herders access to solar power through a program launched by the Mongolian Government supported by the World Bank and the Government of the Netherlands. “Thanks to the National 100,000 Solar Ger Electrification Program, over half a million men, women and children, covering half the rural population of Mongolia and 70 percent of herders, now have access to modern electricity.” For these 100,000 herder families, the off-grid solar home systems generate enough power for lights, televisions, radios, mobile phone charging and small appliances. (Video here.) 

Drum roll…Presenting the world’s largest concentrated solar power plant!

Mafalda Duarte's picture

Also available in: العربية | Spanish

Noor concentrated solar power plant is expected to supply 1.1 million of Moroccans with 500 MW of power by 2018. Photo: World Bank


Concentrated Solar Power is the greatest energy technology you have probably never heard of.  While it may not be as widely known as other renewable energy sources, there’s no doubting its potential - the International Energy Agency estimates that up to 11 percent of the world’s electricity generation in 2050 could come from CSP.  

And this week in Morocco, the King, His Majesty Mohammed VI, is officially opening the first phase of what will eventually be the largest CSP plant in the world – the same size as Morocco’s capital city Rabat.  I congratulate Morocco for taking a leadership role that has placed it on the frontlines of a revolution that is bringing low-carbon development to emerging and developing economies worldwide.
 
In collaboration with the World Bank and the African Development Bank, the CIF has already provided US$435 million into this three-phase Noor CSP complex in Morocco.

Are stars aligning for clean energy financing?

Håvard Halland's picture
How sovereign and hybrid funds may help address climate change 

Solar power in FYR Macedonia. Photo by Tomislav Georgiev / World Bank.


One of the biggest bangs at the opening day of the Paris COP21 climate summit was without doubt the dual financing announcements by the Breakthrough Energy Coalition, led by Bill Gates and other high-net-worth individuals, and the Mission Innovation, whose signatory governments have committed to doubling their allocations to clean energy research. The two initiatives aim to increase financing for clean energy innovation, from the basic research stage, funded by governments, to commercialization of promising new technologies—with venture financing provided by private investors.

In developing countries, where many households and companies have very limited access to energy, new clean energy technologies will serve the dual purpose of expanding energy access and constraining carbon emissions. For this to happen, innovative thinking will be needed not only in the development of new technology, but also in financing the deployment of these technologies.

The two initiatives announced in Paris reflect the realization that carbon dioxide emissions would continue to rise even if every commitment to cut carbon emissions were fulfilled. By 2035, the concentration of carbon in the atmosphere will already exceed the estimated levels required to maintain the internationally agreed 2 degrees Celsius limit. The development of new technologies will increase the options available to efficiently address climate change.

Renewable energy export-import: a win-win for the EU and North Africa

Sameh Mobarek's picture

Also available in: Arabic | French | Spanish

Rows of solar panel at a thermo-solar power plant in Morocco. Photo by Dana Smillie / World Bank.
Rows of solar panel at a thermo-solar power plant in Morocco. (Photo: Dana Smillie / World Bank)

Over the past several years much has been written about the significant potential for solar energy generation in the Middle East and North Africa, where there is no shortage of sunshine. The International Energy Agency estimated that the potential from concentrated solar power technology alone could amount to 100 times the electricity demand of North Africa, the Middle East and Europe combined.   

In the wake of commitments at the Paris climate conference (COP21), it is time to develop this rich source of low-carbon energy sitting close to Europe’s southern shores, and bolster efforts to agree on a framework to import clean, sustainable energy from North Africa. 

As recently as 2012 there have been efforts to adopt a framework that would allow importing renewable energy from Morocco to Germany—through France and Spain—but electricity trade between countries typically becomes reality when there are economic benefits for all sides. Electricity trade has the added benefit of fostering closer political ties. 

Expanding regional trade between North Africa and Europe has also been hindered by inadequate physical electrical connections between the two continents and poor physical integration in European electricity grids. There is currently only one electrical transmission interconnection between North Africa and Europe, namely the Morocco-Spain connection.  Further, Spain’s interconnection with the rest of Europe is limited, with no new transmission projects undertaken to expand this capacity for the past three decades. At the same time, Spain had excess generation capacity because of the economic downturn experienced in Europe over the past several years. That made impractical the notion of allowing North African renewable energy into the Spanish market. Italy, another potential electricity gateway from North Africa, was in a similar situation.

China: in pursuit of a new development pathway

Xueman Wang's picture
City landscape, Tianjin, China. Photo: Yang Aijun / World Bank


More than 180 countries have submitted their intended national climate plans to get on a low-carbon development pathway ahead of COP21 climate talks, now underway in Paris.

Called the Intended Nationally Determined Contributions (INDCs), most include mitigation targets to be implemented by 2025 or 2030. But these plans are not just about numbers. Many of them, particularly those put forward by developing countries, also propose climate actions within the countries’ overall development framework, including adaptation. Hardly surprising, as after all, tackling climate change is about effectively managing a country’s economy.

​This certainly seems to be the case for China. 

Morocco raises stakes on combating climate change

Sameh Mobarek's picture
 
View over Ouarzazate city, Morocco. (Photo via ThinkStock)

While responsible for only a small share of global emissions, the country is taking big steps to curb them.

In the next few weeks, Morocco is preparing to commission the first phase of what will be the largest concentrated solar power plant of its kind in the world. The 510 MW Noor-Ouarzazate Concentrated Solar Power (CSP) complex was first conceived as part of the Moroccan Solar Plan (MSP) adopted in 2009 to significantly shift the country’s energy policy and climate change agenda, which is particularly relevant with the climate conference (COP21) happening in Paris. 

This is no small featcurrently, Morocco depends on fossil fuel imports for over 97 percent of its domestic power needs, making it particularly susceptible to regional conditions and volatility in oil prices.

The country is determined to change that, with plans to boost the amount of electricity it generates from renewable sources to 42 percent of its total capacity by 2020. This entails developing and commissioning at least 2,000 MW of solar and 2,000 MW of wind capacity in a relatively short timeframe. 

The Moroccan Agency for Solar Energy (MASEN) was established to implement MSP’s solar targets in conjunction with the Office National de l’Electricité et de l’Eau Potable (ONEE), Morocco’s national electricity and water utility.  Noor-Ouarzazate is the first of a series that MASEN expects to commission by 2020 to achieve its renewable energy target.

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