Home Economy World Bank sets aside $1bn to powering new markets for battery storage

World Bank sets aside $1bn to powering new markets for battery storage

by Business News Report

A new, first-of-its-kind $1 billion World Bank Group program aims to help fast-track investments in battery storage, so it can be deployed affordably and at scale in middle-income and developing countries, including some of the fastest growing economies in the world. Battery storage allows for wind and solar energy to be used at a much greater scale by making it possible to store electricity and use it when it is needed most. The program, which is expected to mobilise another $4 billion, will help countries leapfrog to a new era of energy technology and improve their energy security and grid stability while bolstering global efforts to transition to clean energy.

World Bank said “the global energy landscape is undergoing a major transformation. Attractive costs for solar and wind and emerging innovations like floating solar and solar rooftops are making clean energy a compelling proposition in many countries and improving the prospects for global efforts to fight climate change. Renewable energy sources, including solar and wind, accounted for almost two-thirds of new power capacity around the world in 2016, with almost 165 gigawatts (GW) of power coming online in 2016. Renewable electricity capacity is also forecast to expand by over 920 GW between 2017 and 2022”.

Continuing it said “while solar and wind energy are starting to see more and more uptake, there is no widespread solution in place to store the electricity they produce and use it when it is needed most. Energy storage – batteries in particular — can help solve that problem. But battery technology is expensive and not yet widely deployed in large-scale projects.  The gap is particularly acute in developing countries, where wind and solar power have great potential, energy demand is growing, and where large populations often live without reliable, affordable electricity.

A new World Bank Group (WBG) program aims to close that gap.

“Accelerating Battery Storage for Development” is a new, first-of-its-kind global program to accelerate the deployment of battery storage for energy systems in developing and middle-income countriesIt is expected to help countries ramp up their use of renewable energy, increase grid stability and help them leapfrog to a new generation of energy technology. The WBG is committing $1 billion in financing for the program, which was announced by WBG President Jim Yong Kim at the one Planet Summit in New York.. It also aims to fundraise $1 billion in concessional climate funds, through channels such as the Climate Investment Funds’ Clean Technology Fund, and mobilise at least another $3 billion from the public and private sectors. The goal is to finance 17.5 gigawatt hours (GWh) of battery storage by 2025 – more than triple the 4-5 GWh currently installed in all developing countries.

“We are seeing historic low prices for solar and wind energy, and countries want to use as much of it as possible to meet their energy needs, But to make full use of solar and wind power, we need at-scale and affordable battery storage. Our goal is to catalyze new markets that will help drive down costs and make batteries a viable storage solution for developing countries.”

Related Posts