THE CONTEXT: The International Solar Alliance (ISA) was established at the 2015 United Nations Climate Change conference (COP21) in Paris. It was a collaborative effort between India and France, with the primary aim of accelerating the deployment of solar energy, particularly in developing countries. Since its inception, the ISA has grown into an intergovernmental organization with over 110-member countries.
OBJECTIVES AND VISION:
- Facilitating Energy Access: Ensuring local communities have access to affordable, reliable, and clean energy.
- Energy Security: Enhancing national energy security through the adoption of solar energy.
- Energy Transition: Driving a global shift towards sustainable and renewable energy sources.
The alliance targets the deployment of 1,000 gigawatts (GW) of solar energy and unlocking $1 trillion in solar investments by 2030, aiming to reduce dependence on fossil fuels and combat climate change.
INTERNATIONAL SOLAR ALLIANCE (ISA) INITIATIVES:
- ISA CARES Initiative: Launched in 2020, ISA CARES aims to enhance healthcare facilities in Least Developed Countries (LDCs) and Small Island Developing States (SIDS) with solar energy solutions.
- Secure 1000 Initiative: Catalyze investment in underserved regions, particularly Africa, to promote solar energy projects. Initially introduced at COP27 in 2022, this initiative aims to support innovative solar businesses in ISA member countries.
- STAR-C Initiative: Improve solar technology skills in developing economies through Solar Technology and Applications Resource (STAR) centers. These centers focus on capacity building, local expertise development, and fostering a conducive environment for solar technology adoption.
- Global Solar Facility: Mobilize finance to support solar energy deployment in LDCs and SIDS. This facility seeks to reduce financial risks associated with solar projects, particularly in regions with limited energy access, through standardized policies and financial mechanisms.
- ISA’s Strategic Partnership with United Nations Technology Bank for Least Developed Countries (UNTBLDC): Enhance capacities of LDCs in deep-sea related science, technology, and innovation to support sustainable development of emerging blue economies.
- ISA’s Role in Blue and Green Islands Integrated Programme (BGI-IP): Support Small Island Developing States (SIDS) in tackling environmental degradation and promoting nature-positive changes in key sectors. Launched in 2024, this $135 million initiative by UNDP and GEF targets 15 SIDS, focusing on nature-based solutions in urban development, food production, and tourism.
IMPORTANCE OF SOLAR ENERGY:
- Crucial for Global Energy Transition: Solar energy is pivotal in the global energy transition, critical for tackling climate change. It is the fastest-growing renewable energy source despite its intermittency, and in most regions, it is now the cheapest source of energy when available.
- Cost-Effectiveness and Growth Potential: Solar PV’s cost-effectiveness has been a major driver of its growth. The IEA projects that solar PV will account for 4.5% of total global electricity generation by 2024, and in a high-renewable scenario, it could reach 4.7 TW (4,674 GW) by 2050, making solar energy the world’s largest source of electricity.
- Projected Growth Scenarios for Net-Zero Targets: Achieving global net-zero emissions by 2050 requires a substantial increase in solar PV capacity. The ISA targets a deployment of 1,000 GW of solar energy by 2030, aligning with global climate goals.
CURRENT STATUS:
Despite its ambitious goals, the ISA’s impact on solar energy deployment has been modest. The organization has not yet seen the widespread project implementation it had hoped for. The first ISA-facilitated solar project is expected to start operations in Cuba, with a capacity of 60 MW. However, the ISA has been addressing systemic barriers in developing countries, particularly in Africa, where many nations lack the experience and resources to execute large-scale solar projects.
FUTURE OUTLOOK:
- Upcoming Projects: Several countries are nearing tender processes for solar projects, indicating potential growth.
- Strategic Shifts: The ISA needs to refocus its efforts to meet its ambitious targets, leveraging its unique position to bridge gaps in global solar energy deployment.
GLOBAL SOLAR ENERGY LANDSCAPE:
- Rapid Growth in Global Solar Capacity: The global solar market has seen an unprecedented surge in capacity, with 2023 marking a year of historic growth. According to the International Energy Agency (IEA), global solar photovoltaic (PV) installations reached up to 446 GW dc in 2023, with projections indicating that by 2030, up to five terawatts (TW dc) of PV could be installed, and up to 15 TW dc by 20505. This rapid expansion reflects a significant shift towards renewable energy sources, driven by declining costs, supportive policies, and increasing awareness of solar energy’s environmental benefits.
- Concentration of Deployment in Few Countries: Despite the global growth, solar energy deployment remains concentrated in a handful of countries. China alone dominated global PV deployment in 2023, accounting for roughly 60% of new installations, while the United States secured the second-largest share. This concentration underscores the need for initiatives like the International Solar Alliance (ISA) to help balance the distribution of solar energy growth.
- China’s Dominance in Solar Market: China’s leadership in the solar market is not just about deployment but also extends to manufacturing. Over 80% of the solar manufacturing process is concentrated in China, creating a significant barrier for other markets to quickly adopt solar energy. China’s commitment to its Net Zero by 2060 target, supported by incentives under the 14th Five-Year Plan and locally manufactured equipment, has solidified its position as a key market for solar deployment.
- Imbalance in Manufacturing Industry: The concentration of solar manufacturing in China poses challenges for smaller markets. This imbalance has led to an over-reliance on imports for solar panels, which can hinder the growth of local solar industries in developing countries. The ISA has recognized this issue and aims to foster a more balanced global solar manufacturing landscape.
ISA’S ROLE AND INTERVENTIONS:
- Facilitator and Force Multiplier: The ISA was established to act as a facilitator, not a project developer, to help countries overcome financial, technological, regulatory, or other barriers in harnessing solar energy. Its role is to act as a force multiplier, accelerating the deployment of solar energy technologies in member countries, especially in developing regions.
- Addressing Barriers in Developing Countries: The ISA focuses on addressing systemic barriers in developing countries, particularly in Africa. Many of these nations lack the experience to execute large-scale power projects, especially in newer solar technologies. The ISA has been working with governments and local institutions to create regulatory structures, draft power purchase agreements, and train human resources.
- Capacity Building Initiatives (e.g., STAR Centers): One of the ISA’s important interventions is the establishment of Solar Technology and Applications Resource (STAR) centers in partnership with local institutions. These centers aim to build local expertise and capacity, ensuring sustainable solar energy development in member countries.
- Policy and Regulatory Support: The ISA provides policy and regulatory support to member countries, helping them create conducive environments for solar investment. This includes assisting in the development of power purchase agreements and regulatory frameworks that encourage solar project implementation.
INDIA’S STRATEGIC INTERESTS:
- ISA as Part of Global South Outreach: For India, the ISA represents more than just an energy initiative; it is part of its outreach to the Global South, particularly to countries in Africa. This initiative helps strengthen India’s diplomatic relations and leadership aspirations among developing nations.
- Diplomatic Objectives and Leadership Aspirations: The ISA, headquartered in Gurugram, Haryana, India, and almost entirely funded by India, is seen as an Indian initiative. Prime Minister Narendra Modi has been an advocate for the ISA, leveraging it to enhance India’s diplomatic influence and leadership in renewable energy.
- Prime Minister Modi’s Advocacy: Prime Minister Modi has championed the ISA’s cause, highlighting its crucial role in every relevant forum. This advocacy reflects India’s commitment to global climate action and energy transitions.
CHALLENGES AND FUTURE OUTLOOK:
- Underutilization of ISA’s Potential: Despite its ambitious goals, the ISA has faced challenges in project implementation and in creating excitement about solar energy in countries in dire need of energy access. However, with the groundwork laid in recent years, several countries are nearing tender processes for solar projects, suggesting a potential escalation in solar deployment.
- Funding and Staffing Issues: The ISA has struggled with funding and staffing, impacting its ability to deliver on its objectives. Addressing these issues is crucial for enhancing its effectiveness.
- Relationship with Indian Government Ministries: The ISA’s relationship with Indian government ministries, particularly the Ministry of New and Renewable Energy, has been troubled, affecting its progress and funding.
- Need for Creating Excitement about Solar Energy: Generating enthusiasm about solar energy is essential for its widespread adoption. The ISA must work on creating awareness and excitement to meet its ambitious targets and facilitate a more balanced global solar market.
THE WAY FORWARD:
- Enhance Funding Mechanisms: Collaborate with international financial institutions like the World Bank, Asian Infrastructure Investment Bank (AIIB), and New Development Bank (NDB) to create dedicated funds for solar projects. The Global Solar Facility, launched by ISA in 2022, aims at enhancing solar investments in underserved regions, particularly Africa, using tools like the Solar Payment Guarantee Fund and Solar Insurance Fund.
- Standardization and Best Practices: Encourage member countries to adopt common standards and best practices for solar energy policies and regulations. This includes streamlined processes for project approvals, grid integration, and power purchase agreements (PPAs).
- Promote Local Manufacturing: Encourage member countries to invest in solar manufacturing capacities, reducing dependency on imports and fostering a more balanced supply chain. India’s example of supporting local manufacturing through policies can serve as a model.
- Incentivize Private Investment: Create incentives for private companies to invest in solar projects in developing countries. The ISA-GEAPP partnership is an example of how international collaborations can mobilize private sector involvement.
- Diplomatic Advocacy: Utilize India’s leadership role to advocate for solar energy in international forums, leveraging PM Modi’s commitment to solar energy to influence global energy policies and commitments.
THE CONCLUSION:
The ISA’s role in accelerating solar energy deployment is crucial for global energy transitions and India’s leadership aspirations in the Global South, but it must overcome funding, staffing, and bureaucratic hurdles to fully realize its potential in facilitating solar energy adoption in developing countries.
UPSC PAST YEAR QUESTION:
Q. Explain the purpose of the Green Grid Initiative launched at world leaders Summit of the COP 26 UN Climate Change Conference in Glassgow in November 2021. When was this idea first floated in the International Solar Alliance (ISA)? 2021
MAINS PRACTICE QUESTION:
Q. Discuss the role of the International Solar Alliance (ISA) in promoting solar energy deployment and analyze the challenges it faces in achieving its ambitious goals of 1,000 GW solar energy capacity by 2030.
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