MANU/PIBU/3320/2023

Department/Board : Press Information Bureau

Date : 31.10.2023

International Solar Alliance's Global Solar Facility set to receive a capital contribution of $35 million dollars

Government of India is considering a $25 million investment as capital contribution to the Global Solar Facility

ISA to provide $10 million to the GSF

Amidst a $12.5 trillion global renewable energy investment gap, the GSF steps up to bridge the divide, focusing on stimulating investments in off-grid solar in underserved regions

The International Solar Alliance (ISA) today announced that the Global Solar Facility (GSF), a payment guarantee fund formed by ISA to stimulate investments into solar power projects, is set to receive a capital contribution of $35 million dollars.

The Global Solar Facility (GSF) is designed to catalyze solar investments in underserved segments and geographies across Africa, unlocking commercial capital in the process. Last year, the ISA Assembly approved the Global Solar Facility, which is expected to attract private capital to flow into off-grid solar projects, rooftop solar projects, and productive use solar projects. This financing vehicle, bolstered by payment guarantees, insurance, and investment funds, aims to mitigate project risks, provide technical assistance to address regulatory gaps, reduce currency risks, and resolve contractual and financial uncertainties in the solar energy sector.

The Government of India is considering a $25 million investment as capital contribution in the GSF in addition to $10 million coming from the ISA. Bloomberg Philanthropies and CIFF have also committed their support to the GSF.

Union Minister for Power and New & Renewable Energy, Government of India, and President, International Solar Alliance Assembly, Shri R K Singh said that the target for the GSF is to raise 100 million USD and that the aim going forward would be to globalize the GSF. "Global Solar Facility aims to leverage investments to accelerate transition to solar energy. The target for the GSF is to raise 100 million USD. Africa has immense potential in deploying solar energy capacities, yet due to risks in investments, the region has not been able to leverage its potential. The GSF aims to address this challenge and provide security to investments. India is a good example of development due to private sector investments. It has no sovereign risks and has a strong legal and security framework with a dispute mechanism and security of payments, which has enabled India to attract investments. In the years to come, we will look at globalizing the GSF. I invite all the Member Countries and organizations to partner with us in making this Facility a catalyst for the transformative change that we all are working towards."

Director General of the International Solar Alliance, Dr. Ajay Mathur said: "The GSF has been working towards crowdsourcing investments from various international donors. We are delighted to have the support of Government of India, CIFF and Bloomberg Philanthropies. This will enhance the confidence of investors to invest in decentralized solar application in Africa and enhance the certainty in receiving returns on their investments and could lead to a sea change in global investment patterns."

The ISA highlighted that the GSF is expressly designed to provide investors with the confidence to take up projects in Africa and to enabling $10 billion in investments, which will facilitate clean energy access in 35-40 million African households by 2030 and benefit around 200 million people in the region.

Commenting about why the GSF was needed, Dr. Mathur said: "The world requ........