India Pushes For Investment In Africa For Energy Projects At International Solar Alliance Meet

India and the members of the International Solar Alliance (ISA) will soon operationalise an insurance fund and payment guarantee fund to ensure finances for solar projects reach countries in Africa, Union power and new and renewable energy minister RK Singh said on Tuesday. 

He was addressing a press conference during the sixth session of the ISA assembly — which seeks to promote solar energy globally — being held at New Delhi from 30 October to 2 November.

Ajay Mathur, the director general of the ISA, mentioned that India is contemplating providing a USD 25 million grant to the Global Solar Facility (GSF), an organisation established within the ISA framework to support both the expansion of solar investments to low-income countries and the increase in overall global investments in solar energy.

The GSF aims to promote promising solar technologies by attracting private investment into underserved markets in Africa, while also establishing a payment and insurance system as an initial safety net.

The ISA is planning to launch the GSF in Africa, as the continent holds significant solar energy potential. However, Africa currently has a solar capacity of only about 1.3 percent of the global total, and approximately 600 million people in the region lack access to electricity.

“Green finance will become available at scale throughout countries that do not have access to energy,” said Singh as he pushed for better access to energy, especially among sub-Saharan African countries.

“Investments for solar projects are coming to India,” Singh said after the press conference, but the “problem” is financing of projects in Sub-Saharan Africa. This is where the payment guarantee fund would aid in investment in the region, he added. 

Singh, who is also ISA president, said “733 million people are without access to electricity”. “Solar has the most potential to bridge this gap,” he added. 

Originating in 2015 at the 21st Conference of Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC), the International Solar Alliance (ISA) was born out of a collaboration between India and France. 

This alliance's core mission is to make energy more accessible, ensure energy security, and facilitate the transition to cleaner energy sources within its member countries. Currently, the ISA has 116 member countries, with 94 having formally ratified the ISA framework.

During a recent press conference, an announcement was made that four additional countries had recently signed up to be a part of the ISA framework. When questioned about the notable absence of China, the world's leading solar producer, as an ISA member, it was pointed out by Singh that the ISA is open to any member of the United Nations.