India, ISA to contribute $35 million to global solar facility

Sub : IR

Sec: Int Conventions

Context:

The ISA announced a capital contribution of $35 million to the Global Solar Facility (GSF) during the sixth assembly of the ISA, hosted by India.
The ISA has signed memoranda of understanding with several organizations, including the Multi-Lateral Investment Guarantee Fund (MIGA) and the West African Development Bank (BOAD), to facilitate investments through the GSF in Africa.

About Global Solar Facility:

The Global Solar Facility (GSF) is an initiative of the International solar Alliance (ISA) aimed at promoting solar energy investments, particularly in underserved markets of Africa.
After focusing on Africa, the GSF plans to expand to regions like Asia, Latin America, and the Middle East.
The facility has two financial components:
- Solar Payment Guarantee Fund
- Solar Insurance Fund
It aims to support off-grid solar projects, rooftop solar installations, and solar applications for productive use.
GSF is expected to provide private investors with the confidence to take up projects in Africa and to enable $10 billion in investments.

Targets:

The GSF aims to raise $100 million.
This initiative is expected to enhance clean energy access for 35-40 million African households by 2030, benefiting approximately 200 million people.

Importance of Solar Energy in Africa:

Despite having significant solar potential, Africa currently accounts for only 1.3% of the world’s installed solar capacity.
With nearly 600 million people lacking electricity, the region is a prime candidate for decentralized solar energy projects.