International Solar Alliance (ISA) GSF to Receive $35 Million Capital Contribution

• 03 Nov 2023

The International Solar Alliance (ISA) has announced that the Global Solar Facility (GSF), a fund aimed at boosting investments in solar power projects, is set to receive a capital contribution of $35 million.

Key Points

• ISA Assembly in India: India is hosting the sixth assembly of the International Solar Alliance (ISA), a meeting that brings together ministers from 20 countries and delegates from 116 member and signatory countries.
• The assembly aims to enhance cooperation and discussions on solar energy initiatives.
• Global Solar Facility (GSF): The GSF, initiated by ISA, is designed to stimulate solar investments in underserved areas across Africa and encourage private capital to flow into off-grid solar projects, rooftop solar projects, and productive use solar projects.
• The fund aims to mitigate project risks, provide technical assistance, address regulatory gaps, reduce currency risks, and resolve contractual and financial uncertainties in the solar energy sector.
• Contributions to GSF: The Indian government is considering a $25 million investment as a capital contribution to the GSF, in addition to $10 million from ISA.
• Bloomberg Philanthropies and Children’s Investment Fund Foundation (CIFF) have also committed their support to the GSF.
• Leveraging Investments for Solar Transition: The GSF's target is to raise $100 million to support solar projects in Africa, where there is significant untapped potential in solar energy.
• Globalizing the GSF: India serves as an example of successful development due to private sector investments, with a strong legal and security framework that attracts investments.
• The ISA aims to expand the GSF's reach globally in the future.
• Confidence for Solar Investments: The GSF is expected to attract $10 billion in investments, providing clean energy access to millions of households and benefiting around 200 million people in the region by 2030.
• Africa's Solar Potential: Despite having vast solar potential, Africa only possesses 1.3 percent of the world's installed solar capacity, with 11.4 gigawatts (GW) out of 849 GW in 2021.
• The lack of electricity access for nearly 600 million people in Africa underscores the need for distributed solar power projects.
• Facilitating Investments: The ISA has signed memoranda of understanding (MoUs) with various institutions, including the Multi-Lateral Investment Guarantee Fund (MIGA), Africa 50, and the West African Development Bank (BOAD), to facilitate investments through the GSF in Africa.