Wednesday, December 1, 2010

ADB allots $2.25B for solar projects

By Amy R. Remo
Philippine Daily Inquirer
First Posted 21:33:00 12/01/2010


MANILA, Philippines—The Asian Development Bank targets to increase the amount of solar power generated in the Asia-Pacific region six-fold to 3,000 megawatts by mid-2013 to help improve energy security within the area.
In a statement, ADB president Haruhiko Kuroda said that Asia Pacific’s high economic growth rates, continuing population growth and current and projected energy demand gap provided a huge market opportunity and potential for solar energy development.
“Asian countries will need to aim to maintain economic progress and improve energy security, while simultaneously charting a new low-carbon development path,” he explained.
Kuroda urged governments in Asia Pacific to invest in solar energy to also help ensure that their future growth was environmentally sustainable.
Through its Asia Solar Energy Initiative (ASEI), the ADB started identifying earlier this year large-capacity solar projects for potential development.
The ADB hopes to provide $2.25 billion to fund the initiative, which is expected to draw in an additional $6.75 billion in investments from other institutions over the same period.
The ASEI would make available a range of projects and knowledge-sharing mechanisms so as to attract other development banks, commercial banks and the private sector to invest in these projects.
In addition to direct financing, ASEI would 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.
Prior to the launch of ASEI in May this year, the region produced less than 500 MW of solar power from installed plants. The capacity is expected to reach 1,000 MW by the end of 2011 and 3,000 megawatts by the end of its third year in May 2013.
In the Philippines, solar power producers are aggressively preparing to install power facilities that can generate some 300 MW over the next three years, buoyed largely by the abundance of resources and anticipation for feed-in-tariffs.

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