India hosts the 6th Session of the International Solar Alliance Assembly in New Delhi
6th Assembly of International Solar
Alliance Assembly decides to increase Viability Gap Funding Cap for solar
projects upto 35 per cent of project cost
ISA-funded Projects bring solar
energy to Malawi Parliament and projects in Fiji, Seychelles and Kiribati
“ISA will share India’s successful practices with developing countries; with
right policy and regulatory framework, certain that investments will flow
into Africa”: ISA President and Union Power and New & Renewable Energy
Minister RK Singh
“Climate action and energy transition will not happen unless we solve the
problem of energy access”: Union Power and New & Renewable Energy Minister
RK Singh
The Sixth
Assembly of the International Solar Alliance (ISA) was hosted at Bharat Mandapam, in
New Delhi today, October 31, 2023 and was presided over by the Union Minister
for Power and New & Renewable Energy, Government of India, Shri R. K. Singh
in his capacity as the President of the ISA Assembly. Ministers from 20
countries and delegates from across 116 Member and Signatory countries
participated in the Assembly.
“Renewable energy sources can decarbonise 90 percent of
the power sector by 2050”
Addressing the Assembly, the ISA President and Union
Minister said that the International Solar Alliance is steadfast in its
commitment to Member Countries to make solar as the energy source of choice.
“Around 80 percent of the global population, totaling a staggering 6 billion people,
reside in countries that depend on fossil fuel imports. Renewable energy
sources have the potential to supply 65 percent of the world's total
electricity by 2030 and decarbonise 90 percent of the power sector by 2050. The
International Solar Alliance is steadfast in its commitment to Member Countries
to make solar as the energy source of choice, foster environments conducive to
attracting investments and ensure ample energy availability to meet the surging
global demands.”
“VGF Cap for Solar Projects in Developing Countries now
up to 35%, up from 10% of project cost”
Addressing a joint press conference along with Ministers
of member countries, Shri Singh informed that the 6th Assembly of ISA has
decided to increase viability gap funding for projects from 10% up to 35%. “The
ISA has a programme for VGF so that viability gap funding is available for
projects in developing countries.” The grant provided under the mechanism is
USD 150,000 or 10% of the project cost (whichever is lower), per country per
project. “Today, we decided that we will increase the viability gap funding to
be in the range of 10% to 35% of the project cost, depending on the capacity
and needs of the countries and their respective projects. This will enable more
investments to flow into Africa.”
ISA-funded Projects
bring solar energy to Malawi Parliament and projects in Fiji, Seychelles and
Kiribati
Four projects set up with ISA’s assistance were
inaugurated by the Union Power and New & Renewable Energy Minister at the
ISA Assembly today.
These projects are:
1.
Solarisation of the parliament building of the
Republic of Malawi
2.
Solarisation of two rural health care centres in
the Republic of Fiji, with an 8-kW solar PV system and 20-kWh battery storage
capacity for each health centre
3.
Installation of 1 solar powered cold storage of
capacity 5 MT for the benefit of agricultural stakeholders at La Digue Island,
Republic of Seychelles
4.
Solarisation of the Nawai Junior Secondary
school (JSS) in the Republic of Kiribati, with a 7 kW Solar PV rooftop system
paired with a 24-kWh BSS
Dedicating the projects, the ISA President applauded the
efforts of ISA member countries in advancing the cause of energy transition
through solar energy.
“ISA has been
delivering results, training centres set up across Africa”
Shri Singh cited capacity building initiatives of the
ISA, informing the media that the organization has been delivering results.
“The organization has been providing expertise, handholding and training
support. Training centres have been set up across Africa.” The projects are a part
of ISA’s initiative to launch Demonstration Projects in May 2020, to meet the
needs of Least developed countries (LDCs) and Small Island Developing States
(SIDS). The aim has been to exhibit solar technology applications which can be
scaled up, and build the capacity of beneficiary member countries.
“ISA a force for
good, helping the world in twin goals of energy transition and energy access”
The Union Minister said that the International Solar
Alliance has emerged as a force for good in the world, in its pursuit of the
twin goals of helping energy transition and energy access. “The ISA is one of
the most critical organizations as the world takes on the challenge of global
warming. We today have 116 member countries, and many others who have signed
the ISA Framework Agreement and are going to ratify it soon.” Noting that the
ISA is a large organization, the Minister added that it has a lot of partner
organizations as well.
“Solar is the Best”
The Minister explained why the organization has a
salience in the world of today and tomorrow. “The ISA has a salience since
there are about 733 million people in the world who do not have access to
electricity. We at ISA believe it is our mission to provide energy access to
these people using renewable energy sources. And out of renewable energy
sources, solar is the best, since it is available for a longer period of time,
both in terms of seasons and hours per day.”
“ISA will share
India’s successful practices with developing countries; with right framework,
certain that investments will flow into Africa”
The ISA President also informed that the Assembly
discussed how successful energy access and energy transition practices adopted
by India can be replicated in developing countries. “With public investment
alone, we cannot ensure universal access to electricity. We need to de-risk
investment so that private investment can come. Hence today, we also discussed
how we can replicate what we have done in India in other countries, in terms of
the techno-regulatory framework, dispute settlement mechanisms and payment
security mechanisms, so that private investments can come in. For this, ISA has
set up a fund, which has components for insurance and payment security
mechanism. With these mechanisms, we are certain that investments will start
flowing into Africa, especially those countries which have problems of energy
access to all their people.”
“Expecting
developed countries to provide green funds as per their COP21 commitments”
The Minister underlined the importance of provision of
green funds by developed countries as per their COP21 commitments. “We also
expect that green finance to become available with the funds we are setting up.
As the green funds start flowing as per the commitments made by developed
countries at COP21, we will have renewable energy projects being rolled out at
scale throughout those countries where there is problem of energy access.”
“Energy access first
and then energy transition, or energy access using green energy”
The Minister said that we can’t have development without
energy access. “The ISA has been formed to make it possible. We believe that
climate action is just not going to happen until and unless we solve the
problem of energy access. We can’t have energy transition until we solve the
problem of energy access. Access first and then transition, or access using
green energy – that is our philosophy. This is the problem which ISA is there
to address.”
“Solar
revolution must be backed up by a broader strategy of access to energy”
The Co-President of the Assembly, Chrysoula
Zacharopoulou, France's Minister of State for Development, Francophonie and
International Partnerships said: “For France, the ISA is a key initiative to
promote the development of clean energy and thus combat climate disruptions. It
is playing its full part in this great project, with constant and growing
support for our Alliance. Through the French Development Agency (AFD), we've
financed over 1.5 billion euros worth of solar projects since 2016. Last year,
we provided over 7.5 billion euros in climate finance to our partners. ”
“Need to accelerate
build-up of solar energy, especially in developing countries”
Director General of International Solar Alliance, Dr Ajay
Mathur said: “We urgently need to accelerate the build-up of solar energy,
especially in developing countries and in applications that influence the daily
lives of those without access to reliable energy – such as getting electricity
from solar mini-grids, powering agricultural pumps and running cold storages.
Capacity building and regulatory change are necessary enablers towards that.
ISA is facilitating over 9.5 GW of solar applications in 55 developing
countries, including LDCs and SIDS, and have already provided training to
nearly 4000 people across the developing world on ways to make a living out of
supporting solar energy. We are working on developing STAR Centres in countries
which will be a hub of technology, knowledge, and expertise on solar energy. In
addition, ISA is enabling solar mini grids to provide universal energy access,
especially where grid extension is too expensive. Guarantees help in
crowding-in private sector investment, and ISA has developed such a mechanism
to provide guarantees through its Global Solar Facility to its member countries
in Africa. We are also enabling entrepreneurs in these countries who can, with
help, become major suppliers of solar energy across countries and regions.”
The inaugural
session can be watched here.
The press conference can be watched here.
The Assembly is the apex decision-making body of ISA, in
which each Member Country is represented. This body makes decisions concerning
the implementation of the ISA’s Framework Agreement and coordinated actions to
be taken to achieve its objective. The Assembly meets annually at the
ministerial level at the ISA’s seat. It assesses the aggregate effect of the
programmes and other activities in terms of deployment of solar energy,
performance, reliability, cost, and scale of finance. The Sixth Assembly of the
ISA is deliberating on the key initiatives of ISA on three critical issues
energy access, energy security, and energy transition.