Solar Alliance approves funding mechanism
21st Oct, 2022
In the direction to bolster investments in solar power projects, the International Solar Alliance (ISA) has approved ‘Solar Facility’, a payment guarantee mechanism.
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.