World Solar Bank
International Solar Alliance (ISA) is preparing a detailed project report (DPR) on the creation of the World Solar Bank with authorised capital of USD 15 billion to fund projects. The DPR for the World Solar Bank is likely to be placed at the annual ISA Assembly in October this year, Director General ISA Upendra Tripathy said. This assumes significance in view of India’s ambitious target of having 100GW of solar energy by 2022. India’s installed solar power generation capacity stood at over 35 GW by July this year, according to the Central Electricity Authority data.
- Besides, there is a need for huge funding for solar projects across the world for increasing the share of renewable sources in the overall energy mix.
- ISA announced during the UN Climate Change Conference in Paris in 2015, the ISA is a partnership of solar energy rich countries.
- At present, there are 121 countries which have agreed to become members of the ISA.
- Most of these countries are from Africa, South-East Asia and Europe. Pakistan and China are not members of the Gurugram-headquartered ISA.
- Prime Minister Narendra Modi in his Independence Day address once again asserted the mega plan of having ‘One Sun, One World, One Grid’ (OSOWOG) or a trans-national electricity grid supplying solar power across the globe. The idea was first announced by Modi in 2018 during the first session of the ISA.
- The ISA is an alliance of 121 countries to create a global market system to tap the benefits of solar power and promote clean energy applications.
- The authorised capital of the bank would be of the size of USD 15 billion within the next five years for funding various solar projects on a large scale like the World Bank does.
- Earlier in the day during a curtain raiser virtual press conference of the First World Solar Technology Summit scheduled on September 8, 2020, Tripathy informed that the ISA is working on DPR of the World Solar Bank which would be placed in the ISA Assembly for its guidance. A special finance vehicle is needed for funding solar projects.
- The ISA has planned to showcase next generation technologies at the First World Solar Technology Summit next month.
- Prime Minister Narendra Modi will deliver the inaugural address at the summit which will be attended by ministers of all ISA member countries and global institutions.
- On this occasion, President of the ISA Assembly and Union Power and New & Renewable Energy Minister R K Singh stated there are two objectives of the ISA—health of the planet and equity (improving access to energy across the planet. He was of the view that the submission would be for the sustainable future of the world.
- Earlier responding to the question on any plan about banning Chinese firms from participating in the global auction for solar home systems for ISA member nations, Tripathy said that the ISA would follow the UN Charter on that.
- State-run firm EESL has been entrusted by the ISA to do this exercise for a potential order of 47 million home power systems worth about USD 28 billion. This is basically a price discovery tender.