IRENA initiative to boost solar development

IRENA initiative to boost solar development

Leaders in energy, finance and law met today at InterSolar Europe in Munich to increase solar energy under a new initiative led by The International Renewable Energy Agency (IRENA).

The Solar Energy Standardisation Initiative and the Terrawatt Initiative will aim to stimulate global solar development by standardising contracts to organise the development and finance of solar projects.

The Paris Agreement requires an estimated US$1.2 trillion in solar energy investment by 2030.

According to IRENA, in order to reach this target, governments need to implement efficient regulatory schemes that enable massive development of solar projects with minimal risk and allow private investors to enter the market at scale.

“High transaction costs for some solar projects are due, in large part, to the complexity of the contractual documents supporting the projects,” said Henning Quester, director of IRENA’s Knowledge, Policy and Finance Centre. “Simplifying the negotiation of these contractual documents will help reduce transaction costs, and allow investment in solar PV to advance more rapidly in more markets worldwide. That is what this initiative hopes to achieve.”

The Initiative will bring together public and private sector stakeholders to agree on a standard template for solar project documents that are effective and acceptable by finance establishments.

Stakeholders attending InterSolar Europe in Munich include: the United Nations Development Programme, Global Solar Power, CITI, the Climate Bonds Initiative and the European Bank for Reconstruction and Development.

The initiative’s goal is to share templates and standard documentation by COP22 in November 2016.