USA JOINS INTERNATIONAL SOLAR ALLIANCE AS 101ST MEMBER COUNTRY

USA JOINS INTERNATIONAL SOLAR ALLIANCE AS 101ST MEMBER COUNTRY

CONTEXT

• The US becomes the 101st country to sign the framework agreement of the ISA to catalyse global energy transition through a solar-led approach

MORE ABOUT NEWS

• The International Solar Alliance (ISA) is a treaty based inter-governmental organization working to create a global market system to tap the benefits of solar power and promote clean energy applications.
• The Paris Declaration that established the ISA states that the countries share the collective ambition to undertake innovative and concerted efforts to reduce the cost of finance and technology for deployment of solar generation assets.
• The ISA aims to pave the way for future solar generation, storage and technologies for Member countries’ needs by mobilising over USD 1000 billion by 2030.
• Achievement of ISA’s objectives will also strengthen the climate action in member countries, helping them fulfil the commitments expressed in their Nationally Determined Contributions (NDCs).

ISA’S VISION TO ENABLE ONE WORLD, ONE SUN, ONE GRID

• The ISA plays a four-fold role in establishing a global solar market: it is an accelerator, an enabler, an incubator, and a facilitator.
  • Accelerator- Demand aggregation: ISA helps to aggregate and harmonise demand, risk and resources, across member countries, thus creating a large ‘buyers’ market’, with the objective of lowering costs for members, and catalysing innovation and investments
    • De-risks potential solar energy investments through several initiatives
    • Addresses barriers and solutions to unlock and foster deployment of solar energy in ISA resource-rich countries
  • Enabler: The International Solar Alliance assists member countries in finding suitable bilateral or multilateral funding
    • ISA does not explicitly provide funds or technology; it helps create conditions that make funding, developing and deploying solar applications on a large scale possible
    • ISA is an international body that puts the spotlight on ideas, advances, and technologies from across the world
  • Incubator: Common Risk Mitigation Mechanism (CRMM): Facilitates commissioning of studies to define and structure Common Risk Mitigation Mechanism (CRMM) for solar power generation projects in solar rich countries
    • The objective of CRMM is de-risking and reducing the financial cost of solar projects in ISA-member countries.
    • CRMM will act as a pooled insurance with limited liability.
  • Facilitator: Project Preparation support / Investments: Facilitate stakeholder consultations, workshops and forums for member countries to foster enabling environments for solar energy projects
  • The ISA supports Member Countries with procurement processes and with aggregating
  • technologies so that the cost of procurement and terms and conditions of procurement are friendly.
  • Capacity Building: The ISA also facilitates capacity building of local technicians, entrepreneurs etc. to promote local entrepreneurship and local assembly of solar equipment.