• 53 mins Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 7 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
Gaurav Agnihotri

Gaurav Agnihotri

Gaurav Agnihotri, a Mechanical engineer and an MBA -Marketing from ICFAI (Institute of Chartered Financial Accountants), Mumbai, is a result oriented and a business focused…

More Info

Global Solar Alliance Sets $1 Trillion Investment Goal For 2030

Global Solar Alliance Sets $1 Trillion Investment Goal For 2030

The Paris COP21 climate summit is turning out to be quite effective as several major agreements and initiatives have been announced in the past few days. Among them was the pledging of around $20 billion in clean energy funding by 19 countries that included the United States, China, Brazil, Canada, South Africa, UK and others.

Another major development included the creation of a Breakthrough Energy Coalition - a vehicle for investing in clean energy projects backed by billionaires Bill Gates and Mark Zuckerberg. In short, all these developments point towards the rising relevance of renewables especially solar power.

Yet another major catalyst that could have a long term impact on global renewable energy investments: India’s Prime Minister Narendra Modi, along with the French President Francois Hollande, launched a ‘Global Solar Alliance’ that consists of 120 nations most of them tropical countries (who receive abundant sunlight throughout the year) but also from European countries, the U.S. and China.

“The solar alliance we are setting up today is an alliance of countries that want to seize the abundant resource of sun energy. It is a partnership of states with private stakeholders from around the world,” said French President Hollande. Related: Saudi Cash Crisis Intensifies As Interbank Rates Soar

What wil this solar alliance specifically do?

The new solar alliance would have its headquarters near New Delhi for which the Indian government would be investing close to $30 million. This headquarter will work towards raising close to $400 million through membership fees and its collaboration with other international agencies and institutes. This initiative could be a ‘game changer’ for the global solar energy sector as no less than 120 nations have joined forces to combat climate change. Members of the alliance commit to specifically work towards expanding the market for solar energy, reduce the cost of financing, and reduce the overall cost of solar technology. The members of the new solar alliance would ‘push’ for new solar projects globally with an aim of ultimately mobilizing around $1 trillion of solar energy funds by 2030.

As the solar energy market can only be expanded through new investments, India (which is spearheading the alliance) has already set a target of installing close to 175 GW of renewable by the year 2020 where solar energy would contribute close to 100 GW. That is an ambitious target considering the fact that India’s current installed capacity is just 4 GW. In the UAE, the Dubai government has announced a $27 billion program, requiring every building in the city state to have a solar panel by 2030. Related: Paris Talks Fall Short On Climate, But Shift To Clean Energy Is Clear

“Solar technology is evolving, costs are coming down and grid connectivity is improving. The dream of universal access to clean energy is becoming more real. This will be the foundation of the new economy of the new century,” said the Indian Prime Minister Narendra Modi who also called the formation of this new alliance as his ‘long cherished dream’.

(Click to enlarge)

With increased solar PV generation capacity, operating costs are already reducing

The biggest strength of the new solar alliance is that it brings the developing and developed countries, industries, laboratories and institutions under a common umbrella. "With the U.S. and China joining India, along with over 100 other nations, to support this solar alliance on the first day of the U.N. climate negotiations, the majority of greenhouse gas emitters are demonstrating tremendous leadership to develop sustainably while curbing climate change," said China Program Director for the Natural Resource Defence Council, Jing Jing Qian. Related: Saudis Prepared To Listen At OPEC Meeting

(Click to enlarge)

Image Source

Conclusion

What sets this initiative apart from others is that it involves the participation of both governments (120 nations) and the private sector. Engie, Enel, HSBC France, Areva and Tata Steel are examples of this. It is likely that more players from the private sector will join this alliance. Now the seed has been planted, the alliance will receive the full support of governments of developing countries, along with their respective private sectors. Putting all the pieces together, the initiative could accelerate the adoption of solar power.

By Gaurav Agnihotri of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Lee James on December 07 2015 said:
    I too see the government-business solar alliance as one of the main positives coming out of COP 21. Good to see India jumping in on a renewable technology that makes so much sense for a sun-drenched country that would benefit greatly from distributed, less-centralized power generation.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News