Monday, July 28, 2014: Newly developed BRICS Bank, jointly formed by BRICS countries, could push solar technology by providing heavy funding. Last week, Brazil, Russia, India, China and South Africa (BRICS) confirmed to join economic forces and form join nation New Development Bank. The new institution would fuel infrastructure and sustainable development projects in BRICS and other developing economies.
Talking to PV Tech, Stephany Griffith-Jones, finance professor at Columbia University and author of BRICS development bank discussion paper in March for the United Nations, said BRICS identified solar as one of their priorities.
Although the actual project funding will take some time, but it will make solar more feasible.
Jones said that NBD based in Shanghai and China enjoys leading role in global solar industry, China have leading role in pushing solar through NDB.
Each of the NBD member would contribute an equal of $10 billion to create an initial fund of US$50 billion, scaling up to $100 billion with a focus on renewable energy.On meeting rural electrification goals with solar, Indian PM, Narendra Modi pledge to give all citizens light, Professor Jones said that NBD could be used as its funding mechanism.
India and South Africa both suffers from electricity crisis and it will be the goal of BRICS Bank to expand clean water and energy through solar power. However he called Russia as “little bit the odd man out” as it not the developing country or emerging country as Russia is an oil and natural gas exporter and this mean that they are less interested in renewable energy.
BRICS believes renewable energy can create economic growth, reduce energy cost and increase efficiency in use of natural resources. However, there is a possibility of rivalry with World Bank.
President of Brazil’s ideal institute which is promoting renewable energy in Brazil, Mauro Passos told PV tech that NBDs prioritisation of renewable energy shows difference to the other banks. Passos added that there won’t be any difficulty between NBD and other development banks because they have common objectives.
According to the initial estimates at Columbia University, Professor Jones said in June that US$100 billion NBD funding level can reach loans of US$350 billion in next 20 years which can be used for investment projects of US$68 billion which is bigger than World Bank funding.
