World Bank finance to boost India's energy transition – plus other top energy stories this week

India's new finance deal with the World Bank will accelerate the country's renewable energy expansion.
India's new finance deal with the World Bank will accelerate the country's renewable energy expansion.
Image: REUTERS/Danish Ismail
  • This week's round-up brings you the latest developments in the global energy sector.
  • Top energy news: World Bank finance to boost India's energy transition as UN trade body calls for more help for developing nations; US approves third and biggest offshore wind project yet.
  • For more on the World Economic Forum's work in the energy space, visit the Centre for Energy and Materials.

1. World Bank finance package to accelerate India’s energy transition

While India’s energy consumption is currently only one-third of the global average per person, demand is expected to grow rapidly in step with the growing economy.

In order to reach its net-zero emissions targets, India - which is the world’s third-largest energy consuming country - needs to accelerate its investment in renewable energy.

The financing will help India scale up renewable energy, develop green hydrogen, and stimulate climate finance for low-carbon energy investments, the World Bank said, as well as to improve power grid integration, and help India reach its 500 GW of renewable energy capacity commitment by 2030.

“The industrial sector will be responsible for much of the future growth of energy demand and emissions,” according to the World Bank, “and green hydrogen can play a critical role in initially decarbonizing the hard-to-abate industrial sectors, such as fertilizer and refinery industries, and later heavy industries, including iron and steel.”

2. UN trade body calls for developing nation energy transition help

The news in India comes as the UN trade and development body called for more investment in renewable energy for developing countries in order to ensure their energy transition. Although investment in the energy transition has tripled since the 2015 Paris Agreement, developing countries are falling behind.

The United Nations Conference on Trade and Development (UNCTAD) report says developing countries need $1.7 trillion of renewable energy investments every year. In 2022, foreign direct investment in clean energy was worth only $544 billion, according to the report.

The report proposes a range of solutions including financing mechanisms and investment policies that should facilitate more sustainable energy technology investment in developing countries.

On financing, the report recommends de-risking energy transition investment in developing countries through a series of mechanisms including loans, guarantees, insurance instruments and equity participation of both the public sector and multilateral development banks.

Greater levels of foreign direct investment are needed to finance the energy transition.
Greater levels of foreign direct investment are needed to finance the energy transition.

The report also highlights the cost efficiencies of partnering with international investors, the public sector and multilateral financial institutions to create a cheaper energy transition.

UNCTAD also says debt relief for developing countries is required so that instead of servicing debt, the money can be used to invest in clean energy transition technologies. Debt relief could also help developing countries attract more foreign private investment by lowering a country’s risk rating.

3. News in brief: More energy stories from around the world

Carmaker Toyota says its EV solid-state battery breakthrough could cut both size and costs in half. Solid-state batteries are viewed as a promising technology to address EV battery challenges including charging time, capacity and the risk of catching fire, says The Financial Times.

Kuwait aims for $300 billion of investment in the energy sector by 2040, said its deputy prime minister, according to Emirates News Agency. Global investment in the energy sector faces significant gaps that need to be filled to prevent crises that could adversely affect the markets and the global economy, he added.

New solar panel technology is increasing demand for silver, which is used in solar cells. Newer solar cells are using more silver than ever, and a new report from The Silver Institute projects solar to make up 14% of silver demand this year, up from around 5% in 2014, reports Bloomberg.

The US government has approved its third and biggest offshore wind project in the US. Located near Atlantic City, Ørsted's Ocean Wind 1 project offshore New Jersey will power around 380,000 homes with clean energy, with operations starting in 2024 or 2025.

Meanwhile, Egypt will be host to Africa’s largest onshore wind farm, as companies signed an agreement to build a 10GW wind farm, reducing the nation’s future carbon emissions by around 9% a year, energy global writes.

Aluminium has been added to the EU list of critical minerals at the last minute, after calls for its inclusion. The Critical Raw Materials Act (CRMA) aims to boost the bloc’s autonomy and security, as China and the US also seek to secure the required raw materials to facilitate the energy transition.

Viet Nam is set to become southeast Asia’s leader in renewable energy, deputy director of the country’s Low Emission Energy Program said, according to Asia News Network. Viet Nam’s decarbonization plan targets 20% of the nation’s electricity generation by 2030, and needs significant local and foreign investment.

India is in talks to supply green hydrogen to the EU and Singapore in return for investment in the nation's green energy projects.

4. More on energy from Agenda

The exponential rise of electric vehicles (EVs) poses technical challenges for power systems, particularly in developing countries. How can developing countries prepare for the challenges of electric mobility?

New Zealand's geothermal wells could be used to store carbon dioxide permanently, according to a new study. Here’s how the nation could become a leader in the global carbon removal industry.

The debate over nuclear energy is far from over, as some countries embrace it as others shut down plants. Maciej Kolaczkowski, Manager of the Advanced Energy Solutions Industry at the World Economic Forum, explains the state of nuclear power around the world.

To learn more about the work of the Centre for Energy and Materials, contact Ella Yutong Lin:

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