Taking stock of the International Solar Alliance

Sub: IR

Sec: Int groupings

Background:

The International Solar Alliance (ISA) was launched in 2015 during the Paris Climate Conference (COP21) by India in collaboration with several other countries, including the host nation, France.

Role of ISA:

The ISA was conceived to promote the use of solar energy globally, with a primary focus on accelerating solar energy deployment in developing countries.
The ISA was envisioned as a facilitator to support the large-scale deployment of solar energy.
Its role was to help countries overcome barriers like financial constraints, lack of technology, regulatory issues, and other challenges.
ISA has been targeting deployment of 1,000 GW of solar energy, and unlocking a trillion dollars in solar investment by 2030.

Evolution:

The ISA started as a coalition of nations but has now evolved into an intergovernmental organization, with more than 110 countries as members.
However, despite its promising beginning, its impact on the global solar energy transition has been modest.

Lack of Progress:

Despite significant investments and effort, ISA-facilitated projects have yet to start operations. The first solar project under ISA facilitation is expected in Cuba, where a 60 MW solar plant is being developed.

Global Solar Energy capacity:

Over the last few years, the global solar energy capacity has been growing rapidly, increasing at over 20% annually. In 2023, solar capacity grew by more than 30%, with China contributing 62% of the global increase, according to World Solar Market Report 2024, a publication of the ISA.
About 43 per cent of global solar PV capacity is installed in China alone. The top 10 markets account for more than 95 per cent of installed capacity.
Solar energy installed capacity is projected to grow between 3 and 15 times in different scenarios for achieving global net zero by 2050.

Barriers to Solar Energy Adoption in Developing Countries:

Lack of experience in executing large solar projects.
No local developers for solar projects, requiring foreign investment.
Foreign investors look for policy stability and sound regulatory environment, which is hard to find in developing countries.

India and ISA:

ISA is a crucial element of India’s diplomatic outreach, especially to African countries. It enhances India’s leadership in the Global South and strengthens its position as a key player in the global energy transition.
Despite being an inter-governmental multilateral organisation, ISA is still largely viewed as an Indian initiative as ISA is headquartered in New Delhi, and India funds and presides over the organization, with its general assembly under India’s leadership until 2026.