Climate Action

Game Changers:

The Solar Story

Cheap, plentiful solar power was once a far-off dream. Today, a solar revolution is happening around the world. People, entire economies, and the planet are benefiting. 

Over the past decade, more than a billion people gained access to electricity, many through solar power.

John Masha Ngowa is among them. He used to run his barber shop in Kilifi, Kenya, without electricity. One day an advertisement for off-grid renewable energy caught his eye.

“The advert showed there was solar lighting. I opted to pick it since we didn’t have electricity in our home or shop,” says Ngowa.

The energy provider gave him a free electric razor as part of his package.  “I have used solar energy to charge the shaving machine. It has helped me get the machine and get a job.”

“It has also helped me increase my hours of operation since I am able to work until late at night.”

Over 90% of electricity in Kenya is generated by renewable energy, including solar. The country's goal is 100% by 2030.

Toward a Cleaner Future


Group of smiley children in front of solar panels in Niger.

Solar panels in Niger. Photo: Meriem Gray/World Bank

Solar panels in Niger. Photo: Meriem Gray/World Bank

Globally, solar is expected to surpass coal as the world’s most available source of energy by 2027. Along with wind power, solar has become the cheapest way to meet the growing demand for electricity

“Solar power is a game changer for the climate and for energy access, and many developing countries have some of the best solar and wind resources in the world,” says Demetrios Papathanasiou, Energy Global Director at the World Bank.

He is optimistic about the ability of countries around the globe to tap into advances in solar energy and make dramatic gains, while recognizing that many developing countries face obstacles in obtaining the finance needed to scale up solar energy investments.  

“The technology exists to bring clean, cheap solar power to millions of people who still live without electricity. The international community must step up its support to help governments prepare transition plans, strengthen their institutions that are the backbone of the power sector, and prepare early projects and mitigate risks that can keep costs out of reach."

“Solar power is a game changer for the climate and for energy access, and many developing countries have some of the best solar and wind resources in the world.” 
Demetrios Papathanasiou, Energy Global Director at the World Bank

Africa is Key to Closing the Energy Gap

Portrait of 50-year old Aicha Diouf at her home in Senegal, standing near a ceiling light. Aicha got electricity at home recently.

50-year old Aicha Diouf at her home in Senegal. Photo: Vincent Tremeau/World Bank

50-year old Aicha Diouf at her home in Senegal. Photo: Vincent Tremeau/World Bank

Of the nearly 675 million people who still live without electricity worldwide, more than 80% -- some 567 million people – live in sub-Saharan Africa.

By 2030, solar mini grids could bring high-quality uninterrupted power to 380 million people. That’s if governments and industry work together to drive costs down and overcome barriers to financing, including technological, political, and regulatory risks, and uncertainty over whether customers can afford to pay.

The same is true for conventional solar power.

Until recently, major renewable energy investments had not been made in the Central African Republic (CAR), a conflict-affected country.  

Soon, however, a new solar park with battery storage will bring power to 250,000 people in the capital city of Bangui. The solar park will displace over 90% of energy currently generated by diesel while generating more than $4 million per year for the city’s energy utility. The 25-Megawatt plant will also contribute to a net emissions reduction of 670,674 tons of CO2 generation.

The plant is financed by World Bank grants and private investors. It’s the first of several projects to expand clean energy in the country, including utility-scale solar, mini-grids and off-grid solutions for homes, public facilities such as schools and hospitals, and other uses such as irrigation pumps and refrigerators.  

By 2030, more than half of all people in CAR are expected to have access to electricity -- up from just 18% today. 

To speed the solar park’s development, the World Bank directly supported CAR to procure resources and supplies to overcome barriers in a complex and fragile environment.  

Aerial view of the solar park in Bangui, Central African Republic.

Solar park in Bangui, Central African Republic. Photo: Vincent Tremeau/World Bank

Solar park in Bangui, Central African Republic. Photo: Vincent Tremeau/World Bank

Worker inspects a solar panel at the solar park in Bangui, Central African Republic.

Solar park in Bangui, Central African Republic. Photo: Vincent Tremeau/World Bank

Solar park in Bangui, Central African Republic. Photo: Vincent Tremeau/World Bank

Breaking Solar Barriers

NOOR solar plant in Ouarzazate, Morocco, featuring new concentrated solar power technology.

NOOR Concentrated Solar Power plant in Ouarzazate, Morocco. Photo: Nicoletta Forlano/CIF

NOOR Concentrated Solar Power plant in Ouarzazate, Morocco. Photo: Nicoletta Forlano/CIF

DDespite its promise, solar’s journey to the mainstream has been slow and difficult. It has taken decades to overcome hesitation around adopting new technology.  

Many countries have been locked into high carbon energy, spending up to six times more on subsidizing fossil fuel consumption than their commitments made under the Paris Agreement to tackle climate change.  

The right policies and regulations can help lower solar development costs, attract cheaper financing and encourage private investment. But Official Development Assistance must also increase and multilateral development institutions including the World Bank will have to do more.   

The World Bank has stepped up in several ways to overcome barriers, often providing strategic advice and essential finance to get projects off the ground.  

Twenty-five years ago, the World Bank’s first solar projects supported the development of new technology -- concentrated solar power -- in Egypt, India, Mexico, and Morocco, funded by grants from the Global Environment Facility.   

In 2016, the World Bank joined other development banks and financiers to back one of the world’s biggest solar projects - the Ouarzazate concentrated solar plant in Morocco, one of the few in the world using pioneering technology to store solar energy and provide continuous power. Today, the futuristic complex generates enough energy for nearly 2 million people to cook their meals and light their homes while offsetting 1 million metric tons of greenhouse gases a year

The World Bank also supported the Benban photovoltaic solar park in Egypt, the fourth biggest in the world. IFC, the Bank’s private sector arm, gathered a consortium of 11 international financial institutions to invest $653 million in 13 solar power plants as part of the solar park. The World Bank’s Multilateral Investment Guarantee Agency (MIGA) also provided $210 million in political risk insurance to private lenders and investors to help the Benban project move forward. 

But first, Egypt developed a new energy strategy, and implemented reforms in the energy sector, with help from the World Bank, to phase out fossil fuel subsidies and reduce the country’s reliance on fossil fuels. Between 2015 and 2017, the country enacted a new renewable energy law and incentives for solar energy development and helped make the Benban solar park happen.  

Today, Benban generates 1,500 – 1,800 megawatts (MW) of power per year, supplying over 900,000 households and displacing 1.7 million tons of greenhouse gas emissions from conventional power plants each year.  

Mirrors at noor's Concentrated Solar Power plant in Morocco.

NOOR Concentrated Solar Power plant in Ouarzazate, Morocco. Photo: CIF

NOOR Concentrated Solar Power plant in Ouarzazate, Morocco. Photo: CIF

Workers at Benban photovoltaic solar park in Egypt.

Benban photovoltaic solar park in Egypt. Photo: Dominic Chavez/IFC

Benban photovoltaic solar park in Egypt. Photo: Dominic Chavez/IFC

Policies Driving Solar Progress 

Aerial shot of delhi metro station with solar panels installed.

Delhi metro station with solar panels installed. Photo: Memories Over Mocha/stock.adobe.com

Delhi metro station with solar panels installed. Photo: Memories Over Mocha/stock.adobe.com

Determined to reap the benefits of solar power, India set an ambitious target in 2015: 100 gigawatts (GW) of solar generation capacity by 2022. The government began providing incentives for solar development while facilitating concessional finance, including for the solar parks that in turn included the giant Rewa Ultra Mega Solar Park in Madhya Pradesh. It also adopted policies to attract the private sector. Financing from the World Bank and the Climate Investment Funds leveraged commercial investment in the Rewa project more than 20 times over.  

“Government policies are important to de-risk renewable energy projects,” said Ajay Mathur, Director General of the International Solar Alliance, based in India. 

“On the one hand there were all kinds of guarantees. Second there was a power purchase agreement with Delhi Metrorail, and third there was a piece of land where developers could almost come and do a plug and play. This kind of true policy measure is majorly important to the development of solar technology in India and in other countries.” 

Learn more in the World Bank report Reality Check: Lessons from 25 Policies Advancing a Low-Carbon Future

“Government policies are important to de-risk renewable energy projects.”
Ajay Mathur, Director General of the International Solar Alliance, based in India

Creating Solar Markets

Aerial view of rooftop solar panels in buildings in India.

Rooftop solar panels in buildings in India. Photo: World Bank

Rooftop solar panels in buildings in India. Photo: World Bank

The World Bank also provided $648 million in discount financing to help kickstart grid-connected rooftop solar on commercial and industrial buildings in India and encouraged several Indian states to adopt regulations that boosted installation of solar farms on building tops. The rooftop solar market grew from 454 MW in 2016 to 11 GW by 2023.   

Other countries are following suit, including Nigeria, where a residential rooftop solar project is projected to reduce emissions by 13.9 million tons.  

The Scaling Solar Program, implemented by the World Bank and IFC, works with governments to streamline solar development and reduce costs. It enabled countries including Zambia and Senegal to generate affordable solar power.  

Uzbekistan has been benefiting from the Program’s support since 2019. With the World Bank and IFC’s assistance, the government attracts foreign investment with transparent and competitive public-private partnerships (PPP), to achieve its ambitious goal of generating 25% of electricity from renewable sources by 2026.  

In August 2021, the country’s first privately operated solar power plant was launched. It can produce over 270 gigawatt hours (GWh) per year of electricity, enough to power over 31,000 households and prevent the release of around 160,000 metric tons of GHG emissions annually. This World Bank and IFC-supported PPP has paved the way for larger multimillion-dollar projects in Uzbekistan’s renewable energy sector, which are currently being implemented by reputable foreign investors. 

“The first solar PPP has set a benchmark for solar prices in Uzbekistan - one of the lowest in Central Asia at that time. In partnership with the World Bank and IFC, the authorities are now replicating this success to attract high-quality private players to develop and finance more ambitious solar and wind energy projects in different parts of the country,” said Shukhrat Vafaev, Director General of the Agency for Strategic Reforms under the President of Uzbekistan, World Bank Group Alternate Governor. “They will produce more green energy, helping meet the demand of Uzbekistan's growing economy and population in electricity, and enhance our energy security.”  

Nur Navoi solar power plant in Uzbekistan.

Nur Navoi solar power plant in Uzbekistan. Photo: World Bank

Nur Navoi solar power plant in Uzbekistan. Photo: World Bank

Technicians at the Nur Navoi solar power plant in Uzbekistan.

Nur Navoi solar power plant in Uzbekistan. Photo: World Bank

Nur Navoi solar power plant in Uzbekistan. Photo: World Bank

Solar's Next Frontier

Battery storage at a solar park.

Photo: Dorothy Chiron/Shutterstock

Photo: Dorothy Chiron/Shutterstock

Ultimately, scaling up solar can only be transformative if the foundations of the power system – such as transmission lines and institutions – are in place to support a clean energy transition.  

Electricity grids, electric utilities, and the government institutions that support them will require enormous transformation and investments across many of the world’s developing countries. But not enough investment has flowed into electricity transmission and distribution networks since the financial crisis and start of the pandemic.  

And with the accelerating growth of solar also comes the need for more energy storage to assure a constant energy supply, no matter where you might live – otherwise solar energy cannot be properly harnessed. The only way to integrate more photovoltaic solar power into grids is if there is enough storage to match the demand and production of electricity. 

Most of the energy storage systems developed to date may not be suited for the distinct conditions of developing countries. But in the southeastern Moroccan desert, a research center built by the Moroccan Sustainable Energy Agency is creating new ways to store solar energy and overcome obstacles such as weak grids or a lack of monitoring and control equipment. The World Bank’s Energy Sector Management Assistance Program (ESMAP) has joined several private sector firms to support the research center and scale it up.  

“It is increasingly clear that the global deployment of renewable energy is dependent on scaling up all forms of storage systems and investing in resilient electricity grids. It is the frontier that must be crossed to reach net zero and universal access to clean energy by 2030,” said Papathanasiou.  

Innovation, determination, climate-friendly policies, and investment have put solar energy on the brink of becoming the world’s dominant energy source. By breaking down the remaining barriers to solar and other renewable energy, the world can realize a greener, more sustainable, and inclusive future. 

“It is increasingly clear that the global deployment of renewable energy is dependent on scaling up all forms of storage systems and investing in resilient electricity grids. It is the frontier that must be crossed to reach net zero and universal access to clean energy by 2030.” 
Demetrios Papathanasiou, Energy Global Director at the World Bank