Abu Dhabi, UAE, May 28, 2013— IFC,
a member of the World Bank Group, and Masdar, Abu Dhabi’s renewable energy
company, today announced their intention to collaborate on the advancement
of clean energy projects.
The Memorandum of Understanding (MOU),
signed today in Washington, D.C., paves the way for the two parties to
explore opportunities for the development of large-scale projects including:
carbon capture, use and storage; clean-tech venture capital and private
equity fund co-investment; solar desalination and utility-scale solar and
wind power projects. The newly-formed cooperative effort will investigate
options for the IFC to finance up to $1.5 billion using financial products
tailored to projects that may be developed by Masdar.
“Over one billion people worldwide
have no access to electricity and another billion have only intermittent
access,” said Masdar CEO Sultan Ahmed Al Jaber. “Utility-scale clean
energy projects like the ones this agreement is exploring can play a critical
role in meeting this shortfall and advancing low-carbon power around the
“This MOU couples our utility-scale
clean energy development expertise with our energy access work and, as
such, fits perfectly with our strategic direction. We look forward to working
with the International Finance Corporation to advance renewable energy
and novel clean-tech projects wherever they have the greatest social, environmental
and economic impact,” added Al Jaber.
Formed in 1956 under the World Bank
umbrella, the IFC invests in for-profit commercial projects that reduce
poverty and promote economic development. Although focused largely
on projects in the developing world, the IFC also explores opportunities
in its other member states where novel infrastructure projects can have
“By encouraging private enterprise,
IFC creates opportunities for people to escape poverty and achieve a better
standard of living,” said IFC CEO Jin-Yong Cai. “This agreement will
help support that work. Scaling up low-carbon, renewable power and solar
desalination projects in developing countries provides sustainable access
to energy and boosts economic growth.”
Renewable energy remains the fastest
growing sector in the energy industry. According to the most conservative
estimates by Bloomberg New Energy Finance, renewables will account for
70 percent of the new power generation capacity added worldwide to 2030,
when renewables will make up half of installed power generation capacity.
Global investment in renewables is also expected to show robust growth
for the foreseeable future.
In 2012, $268 billion was invested in
renewable energy worldwide. That figure is expected to reach an estimated
$750 billion annually by 2030, accounting for 73 percent of total annual
investment in power generation.
IFC, a member of the World Bank Group is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.
Masdar is Abu Dhabi’s renewable energy
company advancing the development, commercialization and deployment of
clean energy technologies and solutions. The company serves as a link between
today’s fossil fuel economy and the energy economy of the future. Backed
by the Mubadala Development Company PJSC, the strategic investment company
of the government of Abu Dhabi, Masdar is dedicated to the Emirate’s long-term
vision for the future of energy.