The World Bank announced last week that its Board of Executive Directors approved the Second Energy Sector Project, which will help strengthen Mongolia’s electric grid and develop a 10MW installation within the country.
Renewable energy is indeed the future, according to Bloomberg New Energy Finance’s latest report, which forecasts technologies such as wind and solar to “dominate” the future of electricity by 2040, making up 48% of the world’s installed capacity and 34% of electricity generation.
With United Nations sanctions lifted on Iran in spring 2016, the solar industry was just one of many that pondered the risks of entering this previously restricted market. Just a year later and the Middle Eastern giant can already boast its first two large-scale solar plants, with the project rights developed by local firm Aftab Mad Rah Abrisham, but delivered and wholly funded by German PV specialist Athos Solar.
UK alternative investment firm Ingenious has teamed with Australian developer Stellata Energy for a landmark joint venture to develop large-scale solar energy in Australia, including a flagship 120MW ground-mounted project.
Whilst African solar is still firmly an emerging market, investors have confirmed that issues remain with development finance, insofar as it is holding back the market from truly taking off. Whilst development finance institutions (DFIs) are a crucial part of allowing the market to find its feet, the continent’s economic infrastructure needs to move beyond the realm of development finance for commercial financiers to be enticed.