Investment in solar expected to be USD 380 billion this year, says DG of International Solar Alliance

New Delhi [India], October 18 : Ahead of the sixth assembly of the International Solar Alliance (ISA), the Director General of ISA Ajay Mathur informed that the investment in solar is expected to be 380 billion dollars this year as last year witnessed an investment of 310 billion.
"This compares favourably with the highest investment in the electricity generation sector at the height of the fossil fuel boom. So, these are large numbers," Ajay Mathur said while addressing a curtain-raiser press conference of ISA in Delhi.
The DH further said that the ISA is supporting the growth of 9.5 GW of solar energy in projects across the world.
"More important than is supporting the institutional development for these projects. This involves setting up institutional infrastructure for bidding, framing of regulations, demonstration projects and capacity for running the projects. There are various kinds of capacity-building programmes which are underway. We look forward to creating a lot more STAR-C centres focussed on development of national programmes within the countries. Next year at the Assembly, we hope to see approval of projects in various countries," he added.
The DG said that the problem is that most of the investment is happening in OECD countries and in China.
"We need to hence address how the rest of the world can adopt solar. Two, most of the investment is happening in large solar; we need to also focus on how we get to small solar such as solar rooftops and solar mini-grids off the ground. Third, there is a concentration of manufacturing in one or two countries, we need to see how we can make this more geographically diversified," Mathur said.
The DG said that the ISA is planning to perform a solar stocktake which will complement the global stocktake which is set to take place during COP28.
"We are moving ahead on supporting COP Presidency in tripling of renewable energy goal and in doing solar stocktake which will complement the global stocktake which will occur at COP28. The Green Hydrogen Innovation Centre website (https://isa-ghic.org/) is already running. One training has already happened in Africa, at the same venue of the African Green Hydrogen Association meeting," Ajay Mathur said.
He further said, "We are also looking forward at new programmes such as Solar for She, which will look at renewable energy in women, our goal is that more women become entrepreneurs in the solar sector. We will update the Assembly about Global Solar Facility and SolarX Startup Challenge."
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Speaking at the press conference, Union Minister for Power, New and Renewable Energy RK Singh said that the International Solar Alliance has a seminal role to play in energy transition given its focus on solar energy.
"Our experience shows that among renewable sources, solar has the edge; it is much more dependable, reliable and available for more months of the year," the Minister added.
The Minister said that solar energy is also capable of being deployed in small sizes which makes it the best suited for ensuring energy access.
"When we launched our campaign for universal access to energy, solar played a major role. It is using solar that we light many homes in the hills and in the deserts. It has ability to be deployed for specific villages in mini-grids. For universal access, solar is the solution. That is what makes ISA important," the Minister said.
Singh said that the salience of ISA lies also in energy transition for the South. The Minister shared the government's belief that energy access is central to any energy transition.
"We cannot have energy transition without energy access. And access has to be clean access as it should not be at the cost of the planet. That is what ISA has been doing. We advise countries how to do this, how to do electrification using solar, we help them set up regulatory structures, and physical structures such as generation being linked to transmission and distribution. We make experts available and ISA bears the cost," RK Singh said.
The Minister emphasized that the most important contribution of the ISA would be to ensure that investment goes to countries of the South.
Stressing on the effectiveness of ISA as an organization at the global level, RK Singh informed that the ISA has 124 signatories, out of which 94 have ratified and this is much bigger than other energy organizations like IEA.
He also informed that 168 countries have already registered to participate in the sixth ISA Assembly, out of which 20 are Ministers.
"Other organizations such as multilateral development banks and other stakeholders too will participate. We propose to hold the Assembly in Bharat Mandapam which has just hosted the G20," Singh said.
Replying to a media question, the Minister said that there is almost complete unanimity across the world that energy transition has to be done and that emissions have to be reduced as soon as possible.
The Minister further said that hydro has an essential role to play in energy transition.
"Hydro has a role in balancing the grid. Many countries have more than 50 per cent of their energy coming from hydro and it is working well. By and large, hydro has stood the test of time, we have had hydro projects which have been functioning since the 60s and 70s."
Secretary, New and Renewable Energy, Bhupinder Singh Bhalla said that the number of countries who have signed and ratified the ISA Framework Agreement has doubled from 47 to 94 since the year 2018.
Another 22 countries have signed and are in the process of ratifying the Agreement, added the Secretary
Bhalla said that ISA's objectives are to ensure energy transition at the global level, energy security at the national level and energy access at the local level.
"India believes that these objectives will ensure access to affordable, reliable, sustainable and modern energy to all. ISA is well-suited to bring these changes in its member counties. ISA's programmes cover the complete spectrum of solar applications and technologies. The ISA is also providing financial assistance of grants up to 50,000 dollars for demonstration projects which showcase solar potential. ISA is also facilitating availability of trained human resources through STAR-C initiative," he said.
He further emphasized, "The Virtual Green Hydrogen Innovation Centre was launched steered by ISA has been launched at the Energy Transitions Ministerial Meeting in July under India's G20 Presidency. As we move forward, India remains steadfast in its commitment for expansion and strengthening of ISA."
The Sixth Assembly of the International Solar Alliance will be held in New Delhi from October 30 to November 2, 2023, a government release said on Wednesday.
The Assembly will be presided over by the President, ISA Assembly and Union Minister for Power and New and Renewable Energy RK Singh.
According to the release, ministers, missions and delegates from 116 Member and Signatory Countries of the ISA will participate, along with delegates from prospective countries, partner organizations, private sector and other stakeholders.
The ISA was launched jointly by India and France after COP21 in Paris.
The sixth assembly of the ISA will deliberate on ISA initiatives that impact energy access, energy security and energy transitions, with a focus on universalisation of energy access through solar mini-grids, mobilising finance for accelerated solar deployment and diversifying supply chains and manufacturing for solar.
The Union Minister for Power, New and Renewable Energy in his capacity as President of ISA interacted with Embassy officials of the countries participating in the forthcoming sixth Assembly meeting.
The ISA Secretariat has also planned a high-level conference on New Technologies for Clean Energy Transition in collaboration with the Ministry of New and Renewable Energy, the Government of India, the Asian Development Bank, and the International Solar Energy Society, on November 1, 2023.
The conference will focus on various issues concerning climate change and solar energy deployment.
ISA will also be releasing three flagship reports providing updates on Solar Technology, Solar Market and Solar Investments.
The ISA Assembly is the apex decision-making body of ISA, in which each Member Country is represented.
This body makes decisions concerning the implementation of the ISA's Framework Agreement and coordinated actions to be taken to achieve its objectives. The Assembly meets annually at the ministerial level at the ISA's seat.
109 countries are signatories to the ISA Framework Agreement, of which 90 countries have submitted the necessary instruments of ratification to become full members of the ISA. The Republic of India holds the office of the President of the ISA Assembly, with the Government of the French Republic as the co-president.
The International Solar Alliance is an international organisation with 109 member countries. It works with governments to improve energy access and security worldwide and promote solar power as a sustainable way to transition to a carbon-neutral future.
ISA member countries are driving change by enacting policies and regulations, sharing best practices, agreeing on common standards, and mobilising investments.