Solar Alliance approves funding mechanism

Published: 21st Oct, 2022

Context

In the direction to bolster investments in solar power projects, the International Solar Alliance (ISA) has approved ‘Solar Facility’, a payment guarantee mechanism.

About

The mission

About International Solar Alliance (ISA):

The International Solar Alliance (ISA) is an action-oriented, member-driven, collaborative platform for the increased deployment of solar energy technologies.
Its basic motive is to facilitate energy access, ensure energy security, and drive energy transition in its member countries.

ISA’s mission is to unlock US$ 1 trillion (?80 lakh crore) of investments in solar power by 2030 while reducing the cost of the technology and its financing.
It is going to stimulate investments into solar projects through two financial components:
Solar Payment Guarantee Fund:
- The payment guarantee fund will only provide a partial guarantee.
- The guarantee fund would enable investments in geographies that do not receive investments.
Solar Insurance Fund:
- It will reduce the burden of insurance premiums for solar developers in the pre-revenue phase of the project.
- It will offset the cost of insurance for a specified period.

CURRENT AFFAIRS FOR UPSC IAS

Solar Alliance approves funding mechanism