GLOBAL SOLAR FACILITY : ENVIRONMENT
NEWS : ISA to launch $100 million global solar facility
for expanding energy access in Africa
WHAT’S IN THE NEWS ?
Both
the mechanisms are expected to be announced at the ISA’s first international
solar festival, which is scheduled to be held on Thursday and Friday in the
national capital.
Global Solar Facility (GSF) by ISA
- Initiative:
$100 million fund by the International Solar Alliance (ISA).
- Objective:
Catalyse up to $1.5 billion in funding for decentralised solar power
across least developed countries, focusing initially on Africa.
- Mechanism:
Payment guarantee to stimulate solar investments, starting with Africa’s
underserved regions.
- Focus:
Decentralised solar, rooftop solar, and productive use solar.
- Functions:
Mitigates project risks, provides technical assistance, addresses
regulatory gaps, reduces currency risks, and resolves
contractual/financial uncertainties.
- Expansion:
Launched in Africa (approved in 2022, announced at COP27), with plans to
expand to Asia, Latin America, and the Middle East.
- Future:
Invest in innovative technologies, support startups, and explore emerging
solar energy sectors.
International
Solar Alliance (ISA)
- Background:
Launched in 2015 at the UN Climate Change Conference in Paris by India and
France. Came into force in 2017 after ratification by 15 countries.
- Membership:
Initially focused on countries between the Tropic of Cancer and Tropic of
Capricorn, now open to all UN member states.
- Objective:
Achieve over 1,000 GW of solar capacity and mobilise $1,000 billion
investment by 2030.
- Recent Initiatives:
- World Solar Bank:
Financing window for solar energy projects.
- One Sun One World One Grid:
Interconnected green grid to transmit solar energy from high-potential
areas to demand centres.
Source : https://www.thehindubusinessline.com/companies/electrifying-africa-isa-to-launch-100-million-solar-facility-insurance-mechanism-to-accelerate-solar-power-projects/article68601622.ece