Abu Dhabi/Washington, D.C., Jan. 18,
2017—New research from the World Bank Group shows that energy storage
technology will become more accessible in emerging markets in the coming
decade, enabling a significant scale-up of renewable energy as a clean
source of electricity generation.
The new report commissioned by IFC and the World Bank-administered Energy
Sector Management Assistance Program projects a 40-fold increase in developing
countries’ stationary energy storage capacity by 2025, with more than
80 gigawatts (GW) expected to be added over that time period to today’s
2 GW of installed electricity storage capacity.
“Energy storage technology will be critical in the expansion of renewable
energy in remote and rural areas that lack grid infrastructure or reliable
electricity supplies,” said IFC Executive Vice President and CEO Philippe
Le Houérou. “By dramatically expanding the capacity to store energy, these
technologies will help countries meet their renewable energy targets, support
the demand for clean energy, and help bring electricity to the 1.2 billion
people who currently lack access.”
The expansion of battery and other stationary storage technology would
make it possible for emerging markets to deploy solar photovoltaic and
wind-powered electricity with less need for fossil fuel-fired power plants
to provide backup when it is cloudy, rainy, or still. Stationary energy
storage can support utility-sized, distributed, and remote power systems
such as micro-and nano-grids, providing the means to capture and redeploy
energy generated from renewable sources on a continuous 24/7 basis.
Addressing climate change and supporting a transition to low-carbon growth
is a strategic priority for the World Bank Group and for IFC, a member
of the World Bank Group and one of the world’s largest financiers of renewable
energy and a major supporter of energy efficiency and other climate-smart
solutions for emerging markets. Supporting clean energy solutions has been
a strategic priority for IFC for well over a decade.
Riccardo Puliti, Senior Director and Head of Energy and Extractives at
the World Bank, said the development of energy storage markets was important
as countries work to implement the COP-21 international climate agreement.
“The World Bank Group is committed to creating the right environment to
attract investment in the energy storage market,” he said. “Continued
innovation in energy storage technology and financing are vital to empower
countries to meet the climate-smart targets set in the Paris agreement.”
The report is available here.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org
The Energy Sector Management Assistance Program (ESMAP) is a global knowledge
and technical assistance program administered by the World Bank. It assists
low- and middle-income countries to increase their know-how and institutional
capacity to achieve environmentally sustainable energy solutions for poverty
reduction and economic growth. For
more information, visit www.esmap.org.