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Evaluating the Progress and Challenges of the International Solar Alliance (ISA)
Context:
The International Solar Alliance, led by India since 2015, faces challenges in achieving widespread solar deployment in the Global South.
More in News:
- Despite a significant rise in global solar capacity, ISA’s impact on developing countries has been limited, with no ISA-facilitated solar project yet operational.
- The first ISA-backed project is set to begin in Cuba with a 60 MW plant, followed by projects totalling approximately 1,250 MW in other countries.
- The global solar capacity has been rapidly growing, with China leading by accounting for 62% of 2023’s capacity addition.
About the International Solar Alliance (ISA):
- Initiation: Launched at the 2015 Paris Climate Conference by India, the ISA aims to promote solar energy in developing countries.
- Mission: Serve as a facilitator to help countries address financial, technological, regulatory, and policy challenges in solar energy deployment.
- Membership: Over 110 countries are now members of the ISA.
- Role: Not directly involved in project development, ISA’s role is to assist member countries by easing the barriers to solar adoption.
ISA’s Role in Global Solar Energy:
- The ISA was created with a vision to combat climate change by accelerating the deployment of solar energy technologies.
- The alliance’s Framework Agreement was amended in 2020 to include all UN member states, expanding its reach.
- Today, ISA represents 120 signatories, with 102 fully ratified member countries, reinforcing its role as a global leader in renewable energy.
ISA’s Objective: Towards 1000 Strategy
- The ISA aims to unlock US$1 trillion in solar investments by 2030 through its ‘Towards 1000’ strategy.
- Key targets include:
- Install 1,000 GW of solar energy capacity.
- Provide energy access to 1 billion people.
- Reduce 1,000 million tonnes of CO2 annually.
ISA’s Programmes:
- The ISA operates nine programs focused on three main areas:
- Analytics & Advocacy
- Capacity Building
- Programmatic Support
- These programs promote solar energy in sectors like agriculture, health, transport, and power generation.
- They also foster solar-friendly policies, mitigate risks, and make the sector more attractive to private investors.
India’s Role in ISA:
- Founding and Leadership: India has led ISA’s development and is committed to driving solar adoption, particularly in the Global South.
- Diplomatic Tool: ISA serves as part of India’s outreach to developing countries, strengthening its influence in Africa and beyond.
- Support and Funding: ISA headquarters are in New Delhi, funded primarily by India, with India presiding over its General Assembly until at least 2026.
- Symbol of Global South Leadership: India’s leadership in ISA is seen as a testament to its commitment to representing and advancing Global South interests.
Overview of India’s Solar Sector:
- India ranks fifth globally in solar power capacity with approximately 90.76 GW of installed solar capacity as of September 2024.
- India’s solar potential is estimated at 748 GW, highlighting the significant room for growth.
- India’s solar sector has grown 30-fold in the last nine years, with 46.3% of its energy capacity now coming from non-fossil sources.
- Policies like 100% FDI in renewable energy have strengthened the sector’s growth.
- India’s target of achieving 500 GW of non-fossil fuel energy by 2030 aligns with the ISA’s goals.
Challenges Facing ISA:
- Limited Impact on Deployment: Despite ISA’s mission, solar deployment in smaller developing countries remains minimal.
- High Barriers in Developing Countries:
- Many countries lack experience with large-scale power projects, and the need for foreign investment faces hurdles like unstable regulatory policies.
- Underutilisation of ISA Resources: ISA has struggled with limited staffing and funding, affecting its capacity to make a substantial impact.
- Dependence on China: China’s dominance in solar manufacturing (over 80%) and capacity addition (43% of global PV capacity) limits ISA’s ability to diversify sources and reduce dependency on a single country.
Way Forward for ISA:
- Policy and Regulatory Support: ISA should continue assisting countries with creating stable regulatory frameworks and power purchase agreements to attract foreign investments.
- Skills Enhancements: Expanding initiatives like STAR (Solar Technology and Applications Resource) centres for skill development and technical training can build local expertise.
- Increased Project Facilitation: With preparations complete in several countries, ISA anticipates that tenders for projects will soon be issued, which could help escalate solar adoption.
- Strengthening Resources and Partnerships: Enhanced funding, staffing, and collaboration with international agencies and private sector players are essential for ISA to achieve its mission.
