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IRENA pushes for low-cost credit to accelerate renewable energy adoption

By Kingsley Jeremiah, Abuja
17 May 2023   |   3:06 am
The International Renewable Energy Agency (IRENA) is pushing for low-cost capital to accelerate renewable energies.

IRENA. PIX: National

To triple renewable investments

The International Renewable Energy Agency (IRENA) is pushing for low-cost capital to accelerate renewable energies.

This comes as the agency, in collaboration with energy giant, Masdar, signed an agreement to cooperate on a major international knowledge project, setting out the means to triple global renewable energy capacity by 2030.

Working in partnership with the Indian G20 Presidency, it launched a comprehensive report on how low-cost finance can accelerate the energy transition.

Titled ‘Low-Cost Energy Transition Finance’ and developed in close collaboration with India’s Ministry of New and Renewable Energy (MNRE), the report provided a toolbox to increase the availability of low-cost capital in G20 countries and beyond.

IRENA’s Deputy Director-General, Gauri Singh, alongside MNRE Secretary, Bhupinder Bhalla, and India’s Power Ministry Secretary, Alok Kumar, introduced the report.

IRENA Director-General, Francesco La Camera, said in a statement: “The global energy transition requires a rapid scale-up of renewable energy deployment globally, making access to low-cost finance urgently vital. We are proud to contribute to the work of the G20 and provide valuable insights that support India’s Presidency in facilitating access to affordable finance in developing and advanced economies.”

IRENA similarly disclosed that the agency and Masdar signed a Memorandum of Understanding (MoU) at the UAE Climate Tech Forum in Abu Dhabi, to collaborate on a project for COP28 that would outline global targets for renewable energy by 2030.

The MoU was signed in the presence of Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President-Designate, by Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Gauri Singh, Deputy Director-General of IRENA.

The main objective of the project is to establish a global baseline for renewable energy, with a focus on solar, wind, hydropower, geothermal, and other technologies including battery storage, complemented by region-specific data.

Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President-Designate, Al Jaber, said: “The world needs to commit to tripling global renewable energy capacity by 2030 and to double it again by 2040. In the 17 years since the UAE leadership established Masdar in 2006, the cost of a kilowatt-hour of solar energy has plummeted to under two cents and we need to harness this pioneering spirit of innovation now more than ever.

“Masdar has already committed to growing its total capacity five-fold to 100GW by the end of the decade and this joint research project with IRENA will emphasize the vital role of renewable energy in limiting global warming when the world comes together at COP28.”

Director-General of IRENA, Francesco La Camera, added: “The transition to renewables provides a sustainable and affordable solution to many of the challenges we face today, and we have the technology to deploy at speed and scale.

“In 2022, a record 300 gigawatts (GW) of renewables were added and renewable power now accounts for 40 per cent of total installed generation capacity globally. Despite this progress, the energy transition is off track. IRENA’s World Energy Transitions Outlook indicates that the deployment of renewables must reach 1000 GW annually to keep the 1.5°C target alive.”

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