AIR Spotlight: International Solar Alliance

AIR Spotlight is an insightful program featured daily on the All India Radio Newsonair. In this program, many eminent panellists discuss issues of importance which can be quite helpful in IAS exam preparation. This article is about the discussion on the International Solar Alliance in the backdrop of the fifth Assembly of the organisation.

Participants:

1. Dr. Ajay Mathur, Director General, International Solar Alliance
2. Sonu Sood, AIR Correspondent

Context

This episode of spotlight features an interview with the Director General of International Solar Alliance (ISA) on the sidelines of the 5th Assembly of ISA.

International Solar Alliance (ISA)

• The ISA was jointly conceived by India and France on the sidelines of the 21st Conference of Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Paris in 2015.
• ISA was conceptualised to mobilise efforts against climate change through the deployment of solar energy solutions.
• The ISA aims to design, develop and deploy cost-effective and revolutionary energy solutions powered by the sun to help member countries develop low-carbon growth trajectories, with a particular focus on Least Developed Countries (LDCs) and the Small Island Developing States (SIDS).
• The ISA is guided by its strategy of “Towards 1000”.
  • The strategy aims to mobilise $1,000 billion of investments in solar energy solutions by 2030 while delivering energy access to 1,000 million people using clean energy solutions and resulting in the installation of 1,000 GW of solar energy capacity. 
• ISA at present has about 110 members, out of which 90 countries have signed and ratified the ISA Framework Agreement.
• The ISA has its headquarters in Gurugram, India.

Read more about – ISA and India’s role in ISA

5th Assembly of ISA – Key Objective and Focus Areas

• The Assembly of the ISA is the apex decision-making body which consists of representatives from each Member Country.
• The 5th Assembly of ISA is being held in Delhi.
• One of the key issues that would be discussed will be the hurdles in facilitating investments into solar projects and what ISA can do to address these.
• In 2021, there was a record amount of investment in solar as well as the electricity sectors globally.
  • The solar sector alone accounted for about 200 billion dollars. However, close to 74% of it went to OECD countries and China.
  • Only 5% of the total investments were directed toward Africa where there is the largest energy demand.
• Risk Management Facility: A proposal to set up a “Risk Management Facility” will be discussed in the current Assembly which will comprise a payment guarantee mechanism.
  • If a country is unable to pay back to the investors this facility will help countries pay back.
  • The move is expected to boost investments in solar power projects and stimulate investments into solar projects in the Least Developed Countries such as various African nations.
• Solar exchange: This is another key proposal in the 5th Assembly of ISA.
  • This programme aims to create entrepreneurs, particularly in Africa.
  • 10 problem statements will be set up and 2 people who provide the best response will be selected from across the continent.
  • These individuals will be provided exposure to how to attract funding, technologies, source material and supply to the market.
  • This programme will be undertaken in association with Invest India and the World Association of Investment Promotion Agencies.
• Progress reports on solar technology, solar markets and investments will also be released which will help countries with up-to-date information.

Significance of ISA

• International investors coming into Africa together along with local entrepreneurs being developed within an ecosystem for revolutionising the solar energy industry and its prospects in the continent.
• The ISA initiative has also boosted collaboration and knowledge sharing between member countries on technological, R&D and financial fronts.
• The ISA as an international resource hub with in-house technical expertise that is readily accessible to member nations has played a significant role in guiding project implementation at scale.
• Capacity building and certification programmes conducted by ISA will help policymakers devise better strategies and will also help create several entrepreneurs and experts for the solar industry.
• The Global Solar Atlas launched jointly by the ISA and World Bank provides detailed information about the kind of solar insolation that is available at various places which becomes crucial for investors and developers.

Solar energy prospects for India

• Acknowledging the large consumer base of India and the fact that solar energy provides electricity at a cheaper price than any of the other sources, the future of the solar energy market in India is very bright.
• India being a tropical country and a “Surya putra”, as regarded by the Prime Minister of the country, make it an ideal production hub.
• With the introduction of Production Linked Incentive (PLI) schemes, more manufacturers and developers will be incentivised to involve themselves in the sector.
• The use of solar pumps and the adoption of solar technologies in agricultural practices can bring about transformational changes in the Agri sector. 
• Further, solar energy can also help improve various other sectors such as storage facilities, transportation services, the healthcare sector, etc.
• India has a huge amount of experience in the solar sector by putting in place a 60GW of solar energy capabilities from about zero in 2012-13.
  • This expertise can be used to help other countries struggling to establish a solar ecosystem in their countries.

Conclusion

Maximising the adoption and usage of solar energy through initiatives like ISA will not only help countries across the world meet their sustainability goals but also address various challenges of energy security as the adoption of solar energy technologies aid in developing local productivity and job opportunities thereby developing the overall economy.

Read previous AIR Spotlight articles in the link.

AIR Spotlight: International Solar Alliance:- Download PDF Here