The World Bank Group has committed $1 billion to a new global programme to accelerate investments in battery storage for energy systems in developing and middle-income countries.
The programme is expected to help these countries ramp up their use of renewables – particularly wind and solar power – improve energy security, increase grid stability and expand access to electricity.
“For developing countries, this can be a game changer,” said World Bank Group President Jim Yong Kim. “Battery storage can help countries leapfrog to the next generation of power generation technology, expand energy access, and set the stage for much cleaner, more stable, energy systems.”
The $1 billion in World Bank Group financing is expected to mobilise another $4 billion in concessional climate financing and public and private investments.
The programme aims to finance 17.5GWh of battery storage by 2025 – more than triple the 4-5GWh currently installed in all developing countries.
Costly battery storage
Currently, batteries used in energy generation systems are expensive, and most projects are concentrated in developed countries.
The “Accelerating Battery Storage for Development” programme, in response to demand from countries, will finance and de-risk investments such as utility-scale solar parks with battery storage, off-grid systems including mini-grids and stand-alone batteries that can help stabilise and strengthen grids.
The programme will also support large-scale demonstration projects for new storage technologies suitable for developing countries’ needs such as batteries that are long-lasting, resilient to harsh conditions and high temperatures, and that present minimal environmental risks.
“Batteries are critical to decarbonising the world’s power systems. They allow us to store wind and solar energy and deploy it when it’s needed most to provide people with clean, affordable, round-the-clock power.” Dr Kim said.
He added: “We call on our partners to join us and match the investments we’re making today. We can create new markets for battery storage in countries with high wind and solar potential, growing energy demand, and populations that still live without reliable electricity.”
The World Bank Group is putting $1 billion of its own funds towards this new programme and will fundraise another $1 billion in concessional climate funds through channels such as the Climate Investment Funds’ Clean Technology Fund.
The programme is expected to raise an additional $3 billion from the public and private funds and investors. Read more: Global lithium-ion batteries market set to soar
The new programme will also convene a global think tank on battery storage, bringing together national laboratories, research institutions, development agencies and philanthropies to foster international technological cooperation and training that can develop and adopt new storage solutions tailored for the needs and conditions of developing countries.