Incentives and low-cost financing mechanisms aimed at promoting solar power initiatives should be made available to countries in Asia and the Pacific, Asian Development Bank President Haruhiko Kuroda said.
“The Asia and Pacific region has the right combination of elements – demand for energy, access to sunlight and arid land, technological maturity, and a sound investment climate,” Kuroda said at the sidelines of the First Asia Solar Energy Forum in Manila.
High up-front capital costs and high-risk perception, the ADB chief said, are discouraging investments in the solar energy sector.
“As a result, there is a risk of ‘Solar Divide’ where developing countries cannot receive the benefit of environmental technology despite its large potential, Kuroda said during the July 5-6 event. “The role of multilateral development institutions, such as ADB and its partners, should be to play a catalytic role to overcome these institutional capacity, policy, technology, and financing barriers.”
The two-day forum is part of the ADB-backed Asian Solar Energy Initiative, which seeks to catalyze projects for about 3,000 megawatts in solar power by 2013.