ADB to launch Asia solar energy fund

Commits US$2.25 billion to generate 2,500 MW.

The Asian Development Bank will launch the Asia Accelerated Solar Energy Development Fund for solar power projects in a number of countries including China, India, Pakistan, Uzbekistan and Thailand.

The fund intends to finance solar projects that will add 1,000 megawatts next year and 1,500MW in 2015, said the ADB.

ADB President Haruhiko Kuroda said that by providing an enabling environment for commercial lending and private investment in the solar energy market, ADB hopes to encourage its rapid growth and bring solar energy nearer to grid parity, making solar energy competitive in price to conventional sources.

He said Asia needs to invest around US$10 billion in the next few years to make solar power generation competitive with conventional energy sources and called for radical steps to fight climate change.

He said ADB wants Asia to add 3,000 MW of solar energy capacity by the end of 2013. It has helped countries add 500 MW this year, doubling the region's solar capacity.

It said the total cost to generate 3,000 MW is about US$10 billion, of which it plans to commit US$2.25 billion. ADB invested US$1.76 billion in clean energy across 29 projects last year and said it is on track to meet a goal of US$2 billion in clean energy investments annually by 2013.