Share

$10bn NBAD fund for renewable energy projects

A significant part of the funds will be channeled into upcoming solar projects, mostly utility scale, that continue to attract the interest of both public and private players.

Share
Funds, NBAD, Renewable, Renewable energy, News

The UAE's National Bank of Abu Dhabi (NBAD) has committed to lend $10bn over the next ten years on renewable projects as banks in the region open up financing for clean energy initiatives.

A significant part of the funds will be channeled into upcoming solar projects, mostly utility scale, that continue to attract the interest of both public and private players.

NBAD forecasts a funding need of $48tn in the next 20 years to meet global energy needs, according to a new report by the bank, financing the future of energy report.

"The world is heading towards a very significant funding gap for energy globally,” said Alex Thursby, CEO of NBAD.

Leading renewable energy industry players in the region such as First Solar, Enviromena and Abdul Latif Jameel say that the next two to three years will see a solar explosion in the region as projects become bankable.

“The past five years have witnessed a sharp rise in new solar projects, but the next few years could see a doubling of this trend,” Dr. Raed Bkayrat, vice president, business development, Saudi Arabia and Middle East at First Solar told Utilities Middle East in an interview.

NBAD established the Sustainable Business Banking team in August 2015 to evaluate and create new financing products that will support the development of renewable energy and sustainable businesses.

"We believe that even in the current climate of low oil prices, the transition towards more renewable sources in the energy mix will continue because the underlying drivers are long-term and strong,” said Thursby.

Besides energy, the funds are also likely to be invested in sustainable business initiatives such as clean transportation, sustainable water, waste management and energy efficient real estate.

Newsletter

Most Popular