IRENA & Terrawatt Initiative To Spur Global Solar Development Through Standardization
The International Renewable Energy Agency and Terrawatt Initiative have launched a new campaign to spur global solar development through standardization.
Announced at InterSolar Europe in Munich, the International Renewable Energy Agency (IRENA) and Terrawatt Initiative launched the Solar Energy Standardisation Initiative, a program intended to spur global solar development through standardizing contractual documents to streamline the development and financing of solar power projects.
“High transaction costs for some solar projects are due, in large part, to the complexity of the contractual documents supporting the projects,” said Henning Wuester, 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.”
According to IRENA, there is approximately $1.2 trillion worth of solar investment needed to meet the commitments put forth by countries in the recently signed Paris Agreement. However, this much solar is only going to be accessible if the high transaction costs are reduced.
“This initiative aims to create a common industry language across all the assets, contracts or markets that are needed to develop renewable energy projects,” added Jean-Pascal Pham-Ba, Secretary General of the Terrawatt Initiative. “This will help quickly increase investment to the levels required to achieve global sustainable development and climate goals.”
The Solar Energy Standardisation Initiative will provide a place for public and private sector stakeholders to define and agree upon a standard template for solar project documentation. The first meeting of the Initiative was held on Tuesday, and included stakeholders from Agence Française de Développement, Chadbourne & Parks, CITI, the Climate Bonds Initiative, the European Bank for Reconstruction and Development, Eversheds, Gide Loyrette Nouel, Global Solar Power, Herbert Smiths Freehills, the Inter-American Development Bank, the International Finance Corporation, Norton Rose Fulbright, Simmons & Simmons, Trilegal, the United Nations Development Programme, and Watson Farley & Williams.
Image Credit: IRENA, via Twitter
Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Latest CleanTechnica.TV Video
CleanTechnica uses affiliate links. See our policy here.
