In the United States (US), the World Bank Group has committed US$1 billion for 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.
The US$1 billion in World Bank Group financing, announced during the One Planet Summit in New York on September 26, is expected to mobilize another US$4 billion in concessional climate financing and public and private investments. The programme aims to finance 17.5 GWh of battery storage by 2025 – more than triple the 4-5 GWh currently installed in all developing countries.
For developing countries, this can be a game changer. 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, said Dr Jim Yong Kim, World Bank Group President.
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 stabilize 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 decarbonizing 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. 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, Dr Kim said.
The World Bank Group is putting US$1 billion of its own funds towards this new programme and will fundraise another US$1 billion in concessional climate funds through channels such as the Climate Investment Funds’ Clean Technology Fund (CTF). The programme is expected to raise an additional US$3 billion from public and private funds and investors.
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 adapt new storage solutions tailored for the needs and conditions of developing countries.
The World Bank Group has been working with countries to support the deployment of batteries together with solar and wind power for several years, with projects currently underway in Africa, South Asia, and the Pacific. The Bank Group has financed roughly 15 percent of the stationary battery storage capacity already deployed or currently under development in developing countries, mostly through mini-grid projects and in island states to improve resilience.
