To make hay while solar energy shines

The International Solar Alliance (ISA), at its 5th assembly in New Delhi that ends today, has decided to set up mechanisms to increase investments in solar energy, particularly in parts of the world where investments have been low. This is an important step. Solar energy has seen exponential growth over the last few years, driven primarily by falling prices. Solar and storage, making it a round-the-clock electricity source, is projected to be the cheapest energy option by 2030 in most parts of the world. But investment required to take advantage of this trend flows disproportionately to China and OECD countries. Countries in Africa, where the growth in energy demand and solar potential is the highest, received only 5% of the $200 billion of global investment flows in 2021.

The payment mechanism that the ISA approved will translate as support for projects by reducing lenders’ apprehensions as it will serve as a payment guarantee. At the same time, the alliance is stepping in with capacity-building to not just deliver on projects, but also build the manufacturing centres required for deeper penetration. The assembly’s decision will make it possible for countries to develop their solar energy capacity avoiding carbon-intensive options while creating jobs.

The ISA was conceived by India as a way to increase energy access in countries that despite having high solar power potential were suffering from energy poverty. Seven years after India and France announced its creation, the now 110-member-strong ISA is moving ahead to make possible delivery on this founding promise. In doing so, it is testimony to global collaboration needed to ensure that poor developing countries can also grow and develop in a climate-constrained world.