The World Solar Commission is proposing to set up a World Solar Commission Trust Fund (WSCTF) to create an independent and collective mechanism to finance the commission's secretariat in Paris.
The general assembly of the 18-member commission met in Kuala Lampur last month and discussed the modalities of creating and managing the trust fund. The expenses are currently met by Unesco. The commission is overseeing the World Solar Programme 1996-2005. The operational budget for the commission's activities is expected to be around $500,000 a year.
The commission, which operates as a non-profit entity working for the cause of development of non-conventional energy sources, has identified power generated from solar and bio-mass sources as the thrust areas for future development of clean power all over the world.
The commission noted that 200 crore people around the globe are awaiting power connection. The strategy will be depend more and more on renewable sources of energy which are non-polluting in nature. The endeavour should be to even replace the conventional generating plants with renewable power sources so that electricity gradually turns into clean energy, the commission observed.
D&B Capital Ltd, which is currently the fund manager for the World Solar Commission, will be retained as the manager of the proposed trust fund, if the general council's recommendation is accepted.
The council has proposed that each member country will commit $100,000 to the WSCTF investment programme. The funds will remain frozen for five years before they are returned to the contributing members.
The funds will be invested in a combination of US government securities of varying maturities. While the securities will remain the property of individual contributors, the interest income generated by the portfolio will be assigned to the WSC secretariat to cover its operating expenses.
It will require a total portfolio size of $10 million for the trust fund to generate the working expense of $500,000 annually. It may be necessary to also approach third parties for complementary financing if the contribution by member nations is found inadequate. Such third party contributors will include various United Nations agencies, banks, investment funds, development agencies and electricity utilities.
Power from bio-mass, the general assembly observed, was competitive in price with conventional power. Solar power is more expensive at the moment, but, is expected to match the cost of conventional electricity in a few years time.
Indian, Thailand, China, Philippines and Indonesian representatives expressed themselves for bio-mass power. They felt that it is easier and cheaper to produce power from wood bio-mass in tropical countries with high rainfall as the bio-mass plantation will grow fast.
India is the leader among developing countries in the development of both solar and bio-mass power. The bio-mass power generating capacity is now 177 mw while solar power capacity is 58 mw in India.
Chinese, Philippine and Indonesian power experts have already visited the 500 kilo watt bio-mass power station at the Gosaba island in West Bengal. Another 500 kw capacity is being set up at the neighbouring Chhoto Mollakhali island.
