World Bank Energy Week Renewable Energy Perspectives Washington, DC April 1, 2009 Michael Eckhart, President American Council On Renewable Energy (ACORE) www.acore.org 1
Preface Opening remarks by Katherine Sierra Vice President, Sustainable Development, World Bank Currently, more than 75% of infrastructure spending in developing countries, closer to 90 percent in many IDA countries, is financed entirely by the public sector, which in turn is partly financed by governments accessing private markets. But, as we all know, it has become difficult for governments worldwide to access finance in the private markets. Private capital has undertaken a flight to quality and is unlikely to be present in the poorest countries. Today, we estimate that developing countries face a financing gap of between $270-$700 billion depending on the severity of the economic and financial crisis and the strength and timing of any policy responses. As the IEA forecasts, under a business-as-usual approach, 70% of the financing in developing countries for new power facilities until 2030 would go to fossil fuel generation. We do not think that is the optimal path for any country to follow.
Preface Opening remarks by Katherine Sierra Vice President, Sustainable Development, World Bank Achim Steiner, Executive Director of the United Nations Environment Programme said investing one percent of global GDP into five key sectors could be the key to a Global Green New Deal. In order to avoid the worst impacts of climate change and lay the foundations for green growth, Lord Stern of Brentford believes that countries should be spending about 20% of their stimulus on green measures. Nearly 40 percent of World Bank energy lending of $7.6 billion was in low carbon alternatives, up from 28 percent only three years ago. Our goal is to move our investments in renewable energy and energy efficiency to more than 50% of all energy lending over the next three years.
Topics 1. Early Work on Financing Solar Energy 2. ACORE 3. International Collaboration 4. Outlook and commentary
1993 Power For The World A Global Photovoltaic Action Plan By Wolfgang Palz, European Commission Presented to the ISES Solar World Congress Budapest, 23 August 1993 The Proposal: 1 Billion people without electricity Call for global program to reach all people with decentralized solar power 10 watts per person 10 Gigawatts to reach 100% To be accomplished by 2020 Results to Date: Less than 1% of all PV production has been put to work for the poor It is The 1% Scandal Utter failure of global institutions to implement a doable program.
1995 The Solar Initiative A Special Initiative within the World Bank Group Two main thrusts: Finance of commercial and near-commercial applications Facilitation of international RD&D Actions: Forge alliances within the Bank Promote a campaign to increase awareness Review Bank lending Identify opportunities to introduce renewables as an energy option
SolarBank SolarBank (Global Fund) SolarBank Fund of South Asia SolarBank Fund of Southern Africa SolarBank Fund of Latin America
1996 Solar Energy Financing Joint Task Force of the World Bank Group and the Rockefeller Foundation April-November, 1996 Outcomes: Solar Development Corporation (failed) On-going in-country solar finance programs
1997 Shell-Eskom Solar Energy Services 1997-2001 Solar Home System in Kwazulu Natal $50 million joint venture Goal to provide solar PV electric systems on all unelectrified homes in Southern Africa Fee-for-service payment 50,000 unit pilot RSA government RFP The African Concession Model
1999-2001 INDIA Solar Finance Capacity Building Initiative SOLAR PV LOAN TRAINING FOR RURAL BANKERS Program Team: Solar International Management Winrock International Institute for Sustainable Dev. Solar Electric Light Fund Trained 1,060 rural bankers in Southern India Syndicate Bank Canara Bank Immediate 600% increase in lending On-going program by USAID and Interest Rate Buy-down by UNEP
Topics 1. Early Work on Financing Solar Energy 2. ACORE 3. International Collaboration 4. Outlook and commentary
ACORE s 650 + Organizational Members Assembling All the Players Necessary to Make Renewable Energy Successful in the U.S.
Policy Conference Phase II of Renewable Energy in America Cannon Caucus Room, Washington, DC December 3-4, 2008
Finance Conference Renewable Energy Finance Forum Wall Street Produced with Euromoney at Waldorf-Astoria Hotel in New York City June 23-24, 2009
ACORE Leadership Council Mission: to bring together the nation s renewable energy leaders to plan and manage the success of renewable energy in America Chairmen CEO s Presidents Managing Directors Managing Partners Government officials University Presidents Association directors Nonprofit leaders Other leaders 2008 Leadership Dinner in the Library of Congress
Great Wall Renewable Energy Forum 2006 and 2009 Beijing, China
Topics 1. Early Work on Financing Solar Energy 2. ACORE 3. International Collaboration 4. Outlook and commentary
Bonn Renewables 2004 June 2004 Outcomes: Action Plans REN 21 Parliamentary Forum Bonn Renewables 2004 in the German Bundestag
Washington International Renewable Energy Conference (WIREC 2008) March 4-6, 2008 8,600 attendees from around the world Ministerial Summit hosted by Bush Administration Trade Show hosted by ACORE and Associations Outcome: On-going series of global meetings under REN 21 Next global meeting will be in India in 2010
IRENA Founding Meeting January 26, 2009 International Renewable Energy Agency (IRENA) Founding Meeting, Bonn, Germany Wolfgang Palz John Geesman Hermann Scheer Klaus Knecht Michael Eckhart Virginia Sonntag-O Brien
Topics 1. Early Work on Financing Solar Energy 2. ACORE 3. International Collaboration 4. Outlook and commentary
Outlook and Commentary On Renewable Energy for the Developing Countries Renewable Energy is succeeding everywhere except in the Developing Countries: Wind power: Denmark, Germany, Spain, U.S., India, China Solar power: Japan, Germany, California, Spain, India, soon China Developing countries it is The 1% Scandal according to Wolfgang Palz The World Bank has squandered a precious opportunity to provide leadership in the deployment and financing of renewable energy: EU and European governments have led The IREC countries hosting global meetings on their own The new IRENA a new agency being formed in the vacuum The Private Sector Financial Community CERES, ACORE, etc. Reasons for optimism: The financial crisis calls to the World Bank with a new urgent need to lead with solutions Copenhagen 2009 provides Word Bank with a new opportunity to present bold strategies Global communications and technology allows the World Bank to try new methods quickly.
World Energy Outlook Exajoules 1500 1000 1500 Royal Dutch Shell Sustained Growth Scenario 1996 TODAY Surprise Geothermal Solar New Biomass Wind Nuclear Hydro Gas Oil & NGL Coal 0 Traditional Biomass 1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 2060 Source: Royal Dutch Shell, 1996. LS-CD-b136501
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