The International Solar Alliance has announced that its Global Solar Facility (GSF) is set to receive a capital contribution of 35 million dollars. GSF is a payment guarantee fund introduced by the alliance to promote investments in solar power projects of low-income countries, especially those in Africa.
The Government of India is considering a $25 million contribution, while the remaining capital is being contributed by ISA itself. Bloomberg Philanthropies and Children’s Investment Fund Foundation (CIFF) have also pledged their support to the GSF.
“Global Solar Facility aims to leverage investments to accelerate the transition to solar energy. The target for the GSF is to raise $100 million,” states R K Singh, Union Minister for Power and New & Renewable Energy, and President of the ISA Assembly.
GSF aims to generate $10 billion in investments and provide clean energy access to 35-40 million African households by 2030. This in turn would benefit around 200 million individuals in the region.
Minister R.K Singh also highlighted the vast potential of solar energy in Africa and the vital role GSF will play in mitigating investment risks and encouraging private participation.
Speaking on this matter, ISA Director General Ajay Mathur emphasized the disparity in RE investments between multiple regions. He stated that the world requires an investment of $12.5 trillion in renewable energy and $23 billion in off-grid solar by 2030. In this scenario, GSF would be necessary for ensuring a balanced energy transition.
Studies show that despite Africa’s immense solar potential, it holds only 1.3% of the world’s installed solar capacity. Moreover, over 600 million Africans do not have access to electricity. To change this picture, ISA has collaborated with entities like MIGA, Africa 50, etc., and engaged potential investors globally to stimulate investments in the region.
ISA is also planning other innovative initiatives, targeting regions like Asia, Latin America, and the Middle East, along with Africa.
The move was announced during the 6th Assembly of ISA, which took place from 30th October to 2nd November. In another major initiative, ISA has also announced plans to increase viability gap funding for solar projects from 10% to 35%, to boost private investment.
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Resource: ET Energy
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