ISA Unveils $200M Asia Solar Facility to Attract Long-Term Financing

In a significant move to further strengthen India's position as a leader in the Global South, the International Solar Alliance (ISA) is planning to set up a $200 million Asia Solar Facility. The facility will focus on securing long-term investments and financing from pension funds and multilateral organizations like the Asian Development Bank for solar projects across underdeveloped and emerging economies in Asia.

Last month, ISA had announced the launch of a similar $200 million Africa Solar Facility to boost investments in the solar power sector in Africa. Now, the organization is turning its attention to Asia, with the goal of replicating this success on the continent.

According to Ashish Khanna, the Director General of ISA, the planned Asia Solar Facility will largely target pension funds and other long-term investors to provide the necessary financing for solar projects in the region. This is part of ISA's broader strategy to explore innovative financing mechanisms that can help bridge the gap in renewable energy investments.

Notably, India, which is currently the third-largest solar power generator in the world, is expected to soon become the second-largest producer of solar energy globally. This is due to a likely slowdown in the solar sector in the United States, providing India with an opportunity to cement its position as a renewable energy powerhouse.

ISA is also working towards establishing a global hub for solar power in India, at its headquarters in Gurugram, which it hopes will emerge as the 'Silicon Valley' of solar energy. The organization has already helped set up centers of excellence in 12 countries, with plans to increase this to 50 in the coming years.