The Asian Development Bank (ADB) announced its new solar initiative, Asia Solar Energy Initiative (ASEI), which over the next three years will generate 3,000MW of solar power with large scale solar projects. ADB will finance $2.25 billion, with an expected leverage of $6.75 billion in solar power investments.
“With energy demand projected to almost double in the Asia and Pacific region by 2030, there is an urgent need for innovative ways to generate power while at the same time reducing greenhouse gas emissions,” ADB managing director General Rajat Nag stated. “Sustainable solar energy can be the clean power of the future if there are appropriate incentive and financing mechanisms in place.”
The ASEI will use various projects, financing and knowledge sharing mechanisms to entice commercial banks and private investors for the solar projects. ASEI also plans to raise $500 million from donor countries to “buy down” the up-front capital costs.