ISA needs to set up a de-risking mechanism and tap more green funds, says Singh
Minister for Power and New & Renewable Energy R K Singh has called on the International Solar Alliance (ISA) to take up more solar energy projects, especially in Africa.
“The economically strong countries will find the renewable energy funds themselves, while the economically weak countries would need green funds. We will have to help such countries who need funds,” he said on 13 June 2023 after holding energy talks with a visiting French Minister.
Singh met with Chrysoula Zacharopoulou, Minister of State for Development, Francophonie and International Partnerships in New Delhi.
The two sides observed that almost half of the African continent does not have access to electricity.
Noting that alongside energy transition, the focus has to be also on ensuring energy access as well, Singh spoke of the need to help the ISA forge ahead in this direction.
The two sides also observed that Africa does not have a problem of decarbonisation as access to electricity is very limited at present; in this scenario, getting access through solar energy is the cheapest and the simplest option.
Singh expressed the need for three funds: insurance for renewable energy projects, payment security mechanism and arrangements for debt financing.
“Once established, these funds will grow, due to contributions and interest payments; in India too, our investment is coming because of a fund we set up as a payment security mechanism,” he said.
Singh also called on the ISA to set up a de-risking mechanism and tap more green funds while promoting grid-scale solar energy projects in the African continent.
The two sides also took note of the success of renewable energy in Kenya, and discussed the idea of holding a conference by ISA in the east African country.
Singh told the visiting French Minister and delegation that even though India’s per capita emissions are one third of the global average, the country is making fast progress in energy transition.
He informed, “While 43% of our capacity today is from non-fossil fuels, we have committed to reducing the emission intensity by 45% by the year 2030.”
He added that India is going to be a world leader in green hydrogen and that the country is adding renewable energy capacity at a fast pace, which will also help bring down the cost of energy in due time. Fiinews.com
