International Solar Alliance (ISA) to Launch $100 Million Global Solar Facility for Africa’s Energy Transformation

The International Solar Alliance (ISA) is set to unveil a groundbreaking $100 million Global Solar Facility aimed at accelerating the deployment of decentralized solar power systems in Africa's least developed countries. This initiative, which seeks to unlock up to $1.5 billion in funding, will be officially announced during ISA's first-ever international solar festival, scheduled for 5-6 September in New Delhi.

Global Solar Facility Targets Africa’s Decentralized Solar Growth

The Global Solar Facility is designed to address Africa’s critical need for electricity, focusing on decentralized solar power solutions in the region. ISA Director General Ajay Mathur emphasized the importance of the fund, explaining that it will operate as a guarantee mechanism to catalyze investments. "We are looking at a $100 million guarantee fund that could trigger around $1.5 billion in solar projects," Mathur said.

As of now, $39 million has already been secured for the fund, with another $15 million expected soon. Once the fund reaches $50 million, it will become operational, marking a significant step in ISA’s broader strategy to drive solar energy adoption in the developing world.

Partnerships Key to Solar Expansion in Developing Countries

The Global Solar Facility will work through a collaborative framework involving businesses, financial institutions, policymakers, and communities. The goal is to mobilize resources and partnerships to foster solar growth in regions where energy access is most lacking. “Through these partnerships, ISA aims to unlock solar energy’s potential, drive major investments, and create a sustainable, vibrant future,” Mathur added.

Innovative Insurance Mechanism to Secure Solar Investments

In addition to the Global Solar Facility, ISA is developing an insurance mechanism to further enhance solar project funding in impoverished nations. This insurance initiative will be tested through the Nuru solar project in the Democratic Republic of the Congo, where ISA is collaborating with the World Bank’s Multilateral Investment Guarantee Agency (MIGA). The partnership is expected to scale up, allowing the insurance mechanism to expand to other solar initiatives in the region.

African Fund Agency to Lead the Charge in Project Management

The Global Solar Facility will be managed by an African fund agency, which will oversee project selection and financing. ISA is currently finalizing the appointment of the agency, with the official announcement expected at the upcoming solar festival. The chosen agency will be responsible for ensuring that investments are allocated to regions and projects with the greatest need.

This new fund, along with the insurance mechanism, underscores ISA’s commitment to scaling up solar energy adoption in developing countries, particularly in Africa, and contributing to global efforts in combating climate change.