Combatting Climate Change:
Solar Solutions/The Power of the Sun

The sun is our friend. Each day it provides far more energy than we use in a year—energy that is free, will never run out, and can generate power with no emissions. If solar power ever becomes a large-scale, commercially viable proposition, it could change the world.

That day may not be far off. IFC has launched an $800 million investment initiative to help make it happen by financing infrastructure, equipment and cell manufacturing.

Long seen as prohibitively expensive, solar power’s costs will compare favorably with other power sources in many countries by 2015, our analysis shows. It could be a major power source by mid-century, helping fight global warming. But four things must happen first:

• Enactment of sound government policies
• Development and commercialization of new technologies
• Centering production in emerging markets
• Growth in supply and demand

IFC supports these trends as part of a larger World Bank Group climate change strategy. Much of our early focus is on building an efficient solar supply chain from Asia, which helps the industry cut costs and grow more competitive.

A new $50 million IFC investment in China’s Suntech Power Holdings Company, Ltd. helps build the capital base of an emerging industry leader at a time when global financial conditions make it difficult to raise new private capital.

We are also helping India enter the solar age. Two years ago we financed long-term client Moser Baer’s first production of advanced solar technology for export to developed countries, the current center of global demand.

Now Moser Baer is broadening out, working with us to develop solar plants that will sell power to Indian utilities. It is something that so far has drawn only limited interest from the private sector but—like everything else in this high-impact industry—has a sunny future.