Masdar signs MoU with IFC

Abu Dhabi: Masdar, Abu Dhabi’s renewable energy company, and the International Finance Corporation (IFC), a World Bank arm, on Thursday signed a memorandum of understanding in Washington to collaborate on the advancement of clean energy projects, Masdar said.

The MoU will pave the way for the two parties to explore opportunities for the development of large-scale projects including: carbon capture, use and storage; clean-tech venture capital and private equity fund co-investment; solar desalination and utility-scale solar and wind power projects, said Masdar.

According to the statement, the newly-formed cooperative effort will investigate options for the IFC to finance up to $1.5 billion (Dh5.5 billion) using financial products tailored to projects that may be developed by Masdar.

“Over one billion people worldwide have no access to electricity and another billion have only intermittent access,” said Sultan Ahmad Al Jaber, Masdar CEO.

“Utility-scale clean energy projects like the ones this agreement is exploring can play a critical role in meeting this shortfall and advancing low-carbon power around the world,” he added.

Jin-Yong Cai, IFC CEO remarked: “This agreement will help support that work. Scaling up low-carbon, renewable power and solar desalination projects in developing countries provides sustainable access to energy and boosts economic growth.”

Al Jaber pointed out that the UAE is carrying out different efforts to diversify its energy mix through initiatives like Masdar, focusing on all necessary pillars of the value chain necessary to build a new sector, including research and development, investment, developing renewable energy projects and implementing the principles of sustainable development.

Al Jaber stressed that a balanced, diverse energy mix will satisfy the world’s growing power demand and will ensure long-term energy security.

“The natural gas boom is changing the energy landscape in North America and strengthening the economy,” stressed Al Jaber, adding that “with the growth in energy demand both in the United States and around the world, it is crucial that we remain committed to investing across various energy sources and technologies.”

He reiterated that the USA has the opportunity to enhance its position as a renewable energy leader while securing its long term energy security.

“As energy-rich nations, the USA and the UAE have a responsibility to invest in advancing the renewable energy sector and build a low-carbon future,” added Al Jaber.

Masdar said that in 2012, $268 billion was invested in renewable energy worldwide. That figure is expected to reach an estimated $750 billion annually by 2030, accounting for 73 per cent of total annual investment in power generation.

The statement showed that renewables will account for 70 per cent of the new power generation capacity added worldwide to 2030, and will make up half of installed power generation capacity.