The International Solar Alliance (ISA) will launch a $100 million Global Solar Facility to catalyze up to $1.5 billion in funding to expand decentralized solar power in Africa, where over 700 million people lack access to electricity. ISA is also developing an insurance mechanism to boost funding in poorer countries. Both initiatives will be announced at ISA’s first international solar festival, scheduled for Thursday and Friday in the national capital.
ISA Director General Ajay Mathur emphasized that ISA aims to unlock solar energy’s potential through partnerships involving businesses, colleges, youth, women, and communities. The festival will focus on fostering partnerships, innovating financing, deploying technology, and enhancing capacity in ISA member countries, aligning stakeholders to accelerate the shift to sustainable solar energy.
Mathur stated that the Global Solar Facility will initially focus on decentralized solar projects in Africa. With a $100 million guarantee fund, it aims to attract $1.5 billion in projects. Currently, $39 million has been pledged, and with expected additional commitments, the fund will become operational once it exceeds $50 million. ISA is selecting an African fund manager to handle project selection and financing.
ISA is working on an insurance mechanism, starting with the Nuru project in Congo, to facilitate investment in Africa’s least developed countries. In collaboration with the Multilateral Investment Guarantee Agency (MIGA), ISA plans to create an insurance facility similar to MIGA’s $50.3 million guarantee for solar mini grids in Congo, protecting investments against risks like expropriation and civil unrest. Talks with the World Bank and MIGA are ongoing to expand this initiative, supporting new solar projects and regulatory frameworks.