On 31st October 2023, India hosted the 6th Assembly of the International Solar Alliance (ISA) at Bharat Mandapam, in New Delhi, Delhi. Union Minister Raj Kumar Singh (RK Singh) Ministry of Power (MOP) and Ministry of New & Renewable Energy(MNRE), President of ISA presided over the 6th Assembly of ISA.
Participants: Ministers from 20 countries and delegates from across 116 countries and signatory countries participated in the Assembly
Key Points:
i.While addressing the Assembly, R.K. Singh emphasized the importance of Renewable Energy as a future source of energy by underlining the fact that:
- Around 80% of the global population which comprises about 6 billion people resides in countries that depend on fossil fuel imports.
- Renewable energy sources have the potential to supply 65% of the world’s total electricity by 2030.
- Renewable energy sources can decarbonise 90% of the power sector by 2050.
ii.He reiterated that ISA is steadfast in its commitment to member countries to make solar the energy source of choice.
iii.The 6th Assembly of the ISA deliberated on ISA initiatives that energy access, energy security and energy transitions, with a focus on:
- Universalisation of energy access through solar mini-grids.
- Mobilizing Finance for accelerated solar deployment.
- Diversifying supply chains and manufacturing for solar.
ISA Released 3 Flagship Reports on the State of Solar Energy:
During the 6th Assembly, ISA released 3 flagship reports to provide insights into the current state of solar energy, providing updates on Solar Technology, Solar Market and Solar Investments.
i.World Solar Technology Report 2023: The report focuses mainly on Solar photovoltaics (PVs). Solar PVs have experienced exceptional growth, expected to capture 56.4% of total renewable energy share by 2050.
ii.World Solar Market Report 2023: The report offers a comprehensive analysis of the evolution of the solar market, registering a 37% compound annual growth rate with significant market expansion in 2022.
iii.World Solar Investment Report 2023: The report highlights the surge in global solar investment in 2022, exceeding USD 300 billion (a 36% increase from 2021).
- Asia Pacific, Europe and North America accounted for 55% and 33% of global solar project development investment, respectively, in 2022.
- The top 3 countries with investment destinations are China, Germany and The United States of America(USA).
India, ISA to Contribute USD 35 Million to Global Solar Facility
The ISA announced that the Global Solar Facility (GSF), a payment guarantee fund formed by ISA to stimulate investments into solar power projects, is set to receive a capital contribution of USD 35 million.
- The Government of India (GoI) is considering a USD 25 million investment as a capital contribution in the GSF in addition to USD 10 million from ISA. Bloomberg Philanthropies and Children’s Investment Fund Foundation (CIFF) have also committed their support to the GSF.
- The ISA has signed a Memorandum of Understanding (MoU) with the Multi-Lateral Investment Guarantee Fund (MIGA), Africa 50, and West African Development Bank (BOAD) for facilitating investment through GSF in Africa.
About GSF:
The ISA highlighted the fact that GSF aims to generate USD 10 billion in investments and provide clean energy access to 35-40 million African households by 2030 and this would benefit around 200 million individuals in the region.
Background:
i.In 2022, ISA approved the formation of Global Solar Facility (GSF) in Africa, Later it was announced at COP-27 in Sharm-el-Sheikh (Egypt) on November 10, 2022.
ii.The GSF is designed to catalyze solar investments in underserved segments and geographies across Africa.
Significance of GSF:
i.The world requires an investment of USD 12.5 trillion in renewable energy and USD 23 billion in off-grid solar by 2030.
ii.The ISA through its GSF is stepping up as current global solar investment, constituting about 10% of the required amount for achieving net zero emissions.
ISA increases VGF for solar projects from 10% to 35%
The 6th Assembly of ISA has decided to increase the Viability Gap Funding (VGF) for solar projects across its member countries to 35% from the existing 10%. These projects will mostly focus on the underdeveloped and developing nations of Africa and South America.
- Under the VGF mechanism, currently, ISA provides a grant of USD 150,000 or 10% of the project cost.
- The VGF would largely be used in the developing and underdeveloped nations of Africa and South America.
Launch of ISA assisted four projects in African region
Union Power and New& Renewable Energy Minister, R.K. Singh inaugurated ISA assisted 4 projects at the ISA Assembly in New Delhi, Delhi. These four projects are:
i.Solarisation of the Parliament building of the Republic of Malawi
ii.Solarisation of two rural health care centers in the Republic of Fiji
iii.Installation of Solar-powered cold storage in Seychelles
Initiatives of ISA in Developing Countries
With the aim of realizing its goal, DG of ISA, Ajay Mathur highlighted the various initiatives taken by ISA so far in developing countries to give boost to solar energy are:
- Facilitating over 9.5 GW of Solar applications in 55 developing countries including LDCs (Least Developed Countries) and SIDS (Small Island Developing States).
- Provided training to nearly 4000 people across the developing world which will help to make living out solar energy.
- Developing STAR Centers in countries which will be a hub of technology, knowledge and expertise on solar energy.
- Enabling solar mini grids to provide universal energy access, especially where grid extension is quite expensive.
Chile becomes the 95th member of ISA
Chile has officially joined the ISA as its 95th member. Chile Ambassador Juan Angulo handed over the Instrument of ISA ratification to Abhishek Singh, Joint Secretary (Economic Diplomacy) in the Ministry of External Affairs. This marks a significant move that bolsters the global effort to advance solar energy.
International Solar Alliance:
International Solar Alliance (ISA) is an action-oriented, collaborative platform for increasing the deployment of solar energy as a means for bringing energy access, ensuring energy security and driving energy transition in its member countries.
ISA Assembly: It is the apex body of ISA. It makes the decisions concerning the implementation of the ISA framework agreement. The Assembly meets annually at the ministerial level. India holds the office of President of the ISA Assembly with France as the co-president.
About International Solar Alliance(ISA):
The idea of the formation of ISA was conceived as a joint effort of India and France during the 21st Conference of Parties (COP21) held in Paris, France in 2015.
Director General– Ajay Mathur
Headquarters– Gurugram, Haryana
Formed in 2015
Member– 95 Members and 116 signatories
About Chile:
President– Gabriel Boric
Capital– Santiago
Currency– Peso
