SPECIAL FEATURE
RENEWABLES ON THE RISE AMIDST THE GLOBAL ENERGY CRISIS
T he war in Ukraine and the global energy crisis have fueled concerns that clean energy investments will come under pressure. Others argue that the current crisis is a wake-up call for an urgent diversification of energy supplies. Recent figures show that the latter argument may prevail: The growth of the world’s capacity to generate electricity from solar panels, wind turbines and other renewable technologies is on course to accelerate over the coming years, according to a new report by the International Energy Agency. Clean energy investment is expected to top US$1.4 trillion in 2022, a significant acceleration after many years of slow progress. It now accounts for almost three-quarters of the growth in overall energy investment and renewables are set to account for almost 95 percent of the increase in global power capacity through 2026, with solar photovoltaics alone providing more than half, the report says. The OPEC Fund has been a longstanding supporter of renewable energy, investing in solar, wind, hydropower and geothermal projects in partner countries across the globe. To date, the Fund has committed nearly US$3.3 billion in support of projects in the energy sector, with renewables now accounting for nearly one-third of its public and private sector operations in energy. One such project is the San Marcos Wind Farm in Honduras, which helped to transform lives for 100,000 households in the rural department of Choluteca. In Honduras, a majority of the rural population live far from urban centers and viable electrical grids. Because expanding the grids over long distances is more costly,
producing sustainable, affordable and clean energy locally offered a good solution. The San Marcos Wind Farm project, owned by Vientos de Electrotecnia, consists of 25 wind turbine generators with an installed capacity of 50 MW and provides electricity to communities without prior access to power. The communities are also benefitting from the social and economic impacts of the project such as creation of jobs, new roads, reforestation and social and educational programs. In Egypt, the new Kom Ombo solar plant, to be developed with international multi-lender support including the OPEC Fund, will be located less than 20 km from Africa’s biggest solar park, the 1.8 GW Benban complex. Once operational, this new utility-scale plant will serve 130,000 households and increase the share of renewable energy in Egypt’s energy mix and further promote private sector participation in the Egyptian power sector.
AGRICULTURAL RESILIENCE IS KEY FOR GLOBAL FOOD SECURITY C limate change will dramatically impact agricultural production all around the globe, reducing yields and productivity. This is why it is crucial to invest in projects which will help strengthen agricultural resilience and adopt sustainable land management practices. Recently, the OPEC Fund extended a US$15 million loan to the Republic of Zimbabwe in support of the Smallholder Agriculture Cluster Project. Co-financed with the International Fund for Agricultural Development and private sector investors, the program will help to transform the small-scale farming sector and increase farmers’ participation in market-oriented and climate-smart value chains. It will finance the construction of small-scale irrigation schemes to equip a total area of 1,780 ha with improved, climate-proof irrigation systems, the rehabilitation of 89 km of feeder roads, as well as providing 100 districts with water supply and sanitation facilities.
PHOTO: CECIL BO DZWOWA/Shutterstock.com
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