World Bank Group has agreed to provide $1bn to scale up investments in battery storage for energy systems in developing and middle-income countries.
The financing is for a new global programme, ‘Accelerating Battery Storage for Development’, designed to help these countries to increase the use of renewable energy.
Additionally, the programme is expected to mobilise another $4bn in concessional climate financing and public and private investments.
According to World Bank, the programme aims to finance 17.5GWh of battery storage by 2025 from 4GWh-5GWh, which is currently available in all developing countries.
World Bank Group president Jim Yong Kim said: “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.”
The financial institution noted that batteries used in energy generation systems are expensive and the majority of these projects are currently located in the developed countries.
Under the programme, countries with more power 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.
Kim further added: “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.
“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.”
World Bank Group said that $1bn will be provided out of its own funds and will also fundraise another $1bn under concessional climate funds through Climate Investment Funds’ Clean Technology Fund (CTF).
In addition to these funds, the programme is expected to raise an additional $3bn from public and private funds and investors.