Dramatic reductions in the cost of renewable energy and rapid innovations in smart grids, storage, and connectivity are driving large scale clean energy investments, especially in developing countries. The Paris Agreement on climate change is providing further impetus to scale up renewable energy, as countries are implementing policies to deliver on commitments. But despite these efforts, challenges still remain that could hold back investment and the transition to a low carbon future.
Achieving “affordable, reliable, sustainable and modern energy for all” demands increased amounts of renewable energy. But the scale-up of renewable energy is not happening fast enough. Consumers are being locked into other potentially more expensive investments and climate change targets will be missed.
There is an urgent need to support countries in improving the enabling environment to unlock investment and least-cost capacity additions from renewable energy.
We must ensure that the range of renewable energy and storage technologies that can be deployed broadens, ensuring climate change targets are met as quickly and cost-effectively as possible. Placing special emphasis on grid integration issues and power system flexibility, where storage has an important role to play. All while ensuring that no country is left behind in the transition to renewable energy.
How does ESMAP plan to support this transition?
Energizing Renewables: Major scale-up of mature renewables under a comprehensive model including geothermal, onshore wind, and solar by leveraging SRMI (Sustainable Renewables Risk Mitigation Initiative), an integrated package of support combined with MDB and climate finance.
Focus Technologies: Accelerating deployment of three technology classes critical to broadening the range of options and integrating them into the grid: Energy Storage, Innovative Solar, and Offshore Wind.
Hydropower Development Facility: Building a pipeline of sustainable hydropower projects in recognition of the critical role it plays in system balancing, flood control, and irrigation.