Innovativefinancing instruments
The Solar Risk Mitigation Initiative (SRMI), launched at the COP24 by the World Bank (WB) and the Agence Francaise de De?veloppement (AFD) in support of the International Solar Alliance (ISA), aims at supporting the development of bankable solar programs in developing countries leveraging private sector investments. World Bank has also committed 337 million USD Risk Mitigation Fund for 23 member countries in off grid sector (ROGEP) in Africa in partnership with ISA. The European Investment Bank (EIB) has started working on a 60 Million Euros grant project to create a concessional financial facility and risk mitigation Fund to promote off grid applications in Africa.
Scaled-up and low cost financing for solar investments
The Export Import Bank of India (EXIM Bank) has committed to provide financing for solar projects worth USD 1.4 Billion. AFD, bilateral agency of France has committed to provide financing for solar projects worth 700 million Euros. The ISA secretariat has requests to Australia, the UK and the Netherlands provide concessional funding on the pattern of India and France.
MDB DFI Mission Summary
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Analytics & Advocacy
ISA seeks to support Member Countries in formulating policies and regulations by publishing reports annually on technology, Investments, and markets in the solar Industry.
Capacity Building
Through Its critical capacity-building Initiative, Solar Technology and Application Resource Centres (STAR-C), ISA will provide tailored capacity-building support adapted to the local context. Under this programme, ISA alms to set standards and strengthen the solar ecosystems in all developing countries through solar training for all stakeholders.
Programmatic Support
ISA's programmes will focus on setting up sustainable solar projects in countries most impacted by climate change, specifically in the Least Developed Countries (LDCs) and Small Island Developing States (SIDS). ISA alms to do so in Member Countries by aggregating demand for Innovative and scalable solar solutions and facilitating access to funding with risk mitigation mechanisms.
Technical Assistance for project preparation Asian Development Bank has approved a Technical Assistance program of USD 2 million for ISA member countries in South Asia. These funds would primarily be utilized for support solar project preparations.
Develop Solar Energy Financing Roadmap
To strengthen ISA’s partnership with the MDBs and DFIs and develop a financing roadmap for mobilizing USD 1000 billion by 2030, a joint mission by the MDBs and DFIs was received at the ISA secretariat, supported by E&Y-a global advisory firm, from 12-14 June 2019. The Joint Mission had representation from various MDBs and DFIs, including the World Bank, the Asian Development Bank, the African Development Bank, the Asian Infrastructure Investment Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the International Finance Corporation, the French Development Agency, the Department for International Development of the UK, the Japan Bank for International Cooperation, the Japan International Cooperation Agency, the German Development Bank (KfW) and the Export-Import Bank of India.
ISA Missions
While there was a general consensus on the utility of solar water pumping system in enabling better energy access, reliable irrigation, and increased crop productivity, the lack of affordable.
BUSINESS SECTORS
The solar water pumping Programme of ISA received an enthusiastic response from all stakeholders and the line ministries showed their keen interest in collaborating with ISA
Various leading global consulting and research firms, including E&Y, Deloitte, PwC, KPMG, Dalberg, McKinsey & Co, Bridge to India, Bloomberg New Energy Finance and Edelman also participated actively during the Joint Mission. The Mission covered the following key issues:
- Building a roadmap for mobilizing USD 1000 billion by 2030
- ISA’s programmes and synergy with MDBs’ and DFIs’ investments
- Enhancing ISA-MDBs-DFIs collaboration for scaling up solar investments
A Working Document ISA/SC.01/WD.10 considered by the first meeting of the Standing Committee presented the summary and recommendations made during the Joint Mission, along with the detailed Joint Mission report in its Annex.
