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Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Global | Publication | October 2016
Perhaps the most significant outcome of last year’s Paris Agreement was that countries would submit their Nationally Determined Contributions (“NDC”), being the pledges they make to tackle climate change.
Unsurprisingly, many have specifically identified solar as a key technology - as the summaries below underline.
Norton Rose Fulbright has developed a global solar portal to keep our clients up-to-date with the latest developments across the solar industry. This interactive portal covers over 40 countries and is designed to help our clients identify opportunities and challenges for solar projects across the globe.
Bahrain |
The BAPCO 5MW PV grid-connected plant, installed at the University of Bahrain, aims at demonstrating PV solar technology under local conditions to support up-scaling of renewable energy. The project consists of the installation of 21,000 smart solar panels to generate over 8000 Whs of electricity annually. Bahrain aims for renewables contributing 10 percent of its total energy mix by 2030, with solar power playing an important part in achieving this target. |
India |
India has pledged to reduce the emissions intensity of its GDP by between 33-35 percent by 2030 from the 2005 level. India is running one of the largest renewable programs in the world. Between 2002 and 2015, the share of renewable grid capacity increased over 6 times, from 2 percent (3.9 GW) to around 13 percent (36 GW). India has also decided to anchor a global solar alliance, InSPA (International Agency for Solar Policy & Application), of all countries located between the Tropic of Cancer and the Tropic of Capricorn. Solar power, in particular, is expected to grow significantly in India, with Solar Mission as a major initiative of the Government of India. Solar power installed capacity has increased from only 3.7 MW in 2005 to about 4060 MW in 2015, with a CAGR of more than 100 percent over the decade. The ambitious solar expansion program seeks to enhance the capacity to 100 GW by 2022, which is expected to be scaled up further thereafter. A scheme for development of 25 Solar Parks, Ultra Mega Solar Power Projects, canal-top solar projects and 100,000 solar pumps for farmers is at different stages of implementation. The Government of India is also promoting solarization of the 55,000 petrol pumps across the country; so far 3,135 have been solarized. |
Kenya |
Kenya seeks to reduce its GHG emissions by 30 percent by 2030. The strategy will include the promotion of renewable energy generation, including solar power. |
People’s Republic of China |
China has committed to lower carbon dioxide emissions per unit of GDP by 60-65 percent from the 2005 level by 2030. Since 2009, China has installed 28.05 GW capacity of solar power (400 times the installed capacity in 2005). China intends to continue investing in solar power and other renewable sources, with the ambitious goal of installing solar capacity of around 100 GW by 2020. |
Singapore |
Singapore intends to reduce emissions by 36 percent from 2005 levels by 2030. Singapore recognizes that, due to limited land, harnessing solar power will prove a challenge. Despite this, the government is significantly increasing the deployment of solar photovoltaic (PV) systems. This will be done through the provision of an enabling environment which: (a) facilitates system integration of intermittent sources to ensure grid stability and security; (b) addresses non-market barriers to entry without subsidizing the consumption of any form of energy; and (c) supports continued investment in research, development, and demonstration (RD&D) to reduce the cost and improve efficiency of solar PV modules. By 2030, it is estimated that renewable energy could potentially contribute up to 8 percent of Singapore’s peak electricity demand. |
South Africa |
Solar power will be used to help achieve South Africa’s overall goal. South Africa communicates, as defined in national policy, a ‘peak, plateau and decline’ GHG emissions trajectory range, with emissions levels by 2025 and 2030 falling within a range of between 398 and 614 Mt CO2–eq. |
Tanzania |
Tanzania intends to invest in its solar resources. The goal is to reduce GHG emissions, across its economy, by between 10-20 percent by 2030. |
Turkey |
Turkey is aiming for up to 21 percent reduction in GHG emissions from the Business as Usual (BAU) level by 2030. There are plans to increase capacity of production of electricity from solar power to 10 GW by 2030. |
UAE |
The UAE intends to increase clean energy to 24 percent of its total energy mix by 2021. This will be achieved in part by the use of renewable energy sources. Since recent records have shown that the UAE has one of the lowest costs for solar globally, the UAE intends to develop solar capacity to meet these targets. |
Zimbabwe |
Zimbabwe intends to use solar power off-grids as a form of mitigation contribution. Zimbabwe aims to reduce emissions by 33 percent by 2030. |
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