Washington, D.C., March 7, 2019 – The
World Bank Group announced today a new program to fast-track the adoption
of offshore wind energy in developing countries. The World Bank and IFC
will help emerging markets assess their offshore wind potential and provide
technical assistance to develop a growing pipeline of projects that are
ready for investment by renewable energy developers.
The offshore wind industry has grown nearly
five-fold since 2011, with 23 gigawatts installed at the end of 2018 and
a large volume of planned projects in Europe, China and the United States.
Offshore wind now represents about $26 billion in annual investments –
or 8 percent of new global investments in clean energy – and this proportion
is set to increase dramatically, with about $500 billion expected to be
invested in offshore wind projects by 2030.
This represents an important opportunity for
countries with strong offshore wind resources, including Brazil, Indonesia,
India, the Philippines, South Africa, Sri Lanka, and Vietnam. Offshore
wind can also provide additional clean generation capacity for developing
countries with populations living without access to reliable electricity.
Vietnam’s technical potential for fixed and
floating offshore wind is 309 gigawatts (GW) while South Africa and Brazil
have 356 GW and 526 GW in total technical offshore wind potential respectively.
This represents a significant opportunity for cost-competitive, large-scale
fixed or floating offshore wind projects located close to areas of high
“Offshore wind is a clean, reliable and secure
source of energy with massive potential to transform the energy mix in
countries that have great wind resources. We have seen it work in Europe
– we can now make use of global experience to scale up offshore wind projects
in emerging markets,” said Riccardo Puliti, Senior Director and
Head of Energy and Extractives at the World Bank.
“We see great opportunity for offshore wind
development at scale and are looking forward to working with private sector
developers to open up new investment opportunities in countries that could
benefit from this increasingly competitive source of renewable energy,”
said Bertrand de la Borde, IFC Director and Global Head of Energy and Mining.
“The UK is a world leader in offshore wind,
with the largest installed capacity in Europe,” said Energy & Clean
Growth UK Government Minister, Claire Perry. “This investment will allow
our world-leading expertise to be shared globally to encourage developing
countries to move away from dirty coal power and embrace renewable energy,
growing their economies.”
Led by the World Bank’s Energy Sector Management
Assistance Program (ESMAP), in partnership with IFC, the US$5 million program
is being initiated thanks to a GBP£20 million grant to ESMAP from the United
Kingdom government to help low- and middle-income countries implement environmentally
sustainable energy solutions.
This work will take place in cooperation with
the Global Wind Energy Council (GWEC) and its recently-formed Offshore
Wind Task Force which brings together leading offshore wind developers,
equipment manufacturers and service providers.
The program will convene developing country
governments, commercial developers, development partners, and wind energy
experts to raise awareness around offshore wind opportunities in emerging
markets and lay the groundwork for a pipeline of new projects that could
be supported by World Bank or IFC financing. The World Bank and IFC will
work with public and private sector partners to undertake technical studies
and develop national strategies to facilitate the adoption of this increasingly
Wind Atlas, developed in
partnership by ESMAP and Department of Wind Energy at the Technical University
of Denmark and with 30km coverage offshore at 250m resolution, is a key
resource that can help policymakers and investors identify potential high-wind
areas for wind power generation virtually anywhere in the world.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In fiscal year 2018, we delivered more
than $23 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org