Source: News Bharati English01 Jul 2016 08:32:25
New Delhi, July 1: To collaborate on increasing solar energy use around the world, the Interim Administrative Cell of the International Solar Alliance (ISA Cell) and the World Bank declared their intention to promote solar energy globally. This declaration consisting of 121 countries led by India aims to achieve the goal of mobilizing $1 trillion in investments by 2030.
The declaration was signed & exchanged by Upendra Tripathy, Secretary, Ministry of New and Renewable Energy and Chairperson, ISA cell and Onno Ruhl, India Country Director, World Bank in the presence of Arun Jaitley Union Finance Minister, Piyush Goyal, Minister of State for Power, Coal and New & Renewable Energy, and Dr Jim Yung Kim, President, World Bank.
The Joint Declaration by the ISA cell and the World Bank will help in accelerating mobilization of finance for solar energy, and the Bank will have a major role in mobilizing more than US $1000 billion in investments that will be needed by 2030, to meet ISA’s goals for the massive deployment of affordable solar energy.
“India’s plans to virtually triple the share of renewable energy by 2030 will both transform the country’s energy supply and have far-reaching global implications in the fight against climate change,” said World Bank Group President Jim Yong Kim. “Prime Minister Modi’s personal commitment toward renewable energy, particularly solar, is the driving force behind these investments. The World Bank Group will do all it can to help India meet its ambitious targets, especially around scaling up solar energy”, Kim added.
Kim said he also hoped the signing of the agreement with the ISA would help mobilize a global movement toward a climate-friendly future. As part of the agreement, the Bank Group will develop a roadmap to mobilize financing for development and deployment of affordable solar energy, and work with other multilateral development banks and financial institutions to develop financing instruments to support solar energy development.
Major areas identified for working jointly include:
- Developing a roadmap to mobilize financing
- Developing financing instruments including credit enhancement, reduce hedging costs/currency risk, bond raising in locally denominated currencies etc. which support solar energy development and deployment
- Supporting ISA’s plans for solar energy through technical assistance and knowledge transfer;
- Working on mobilization of concessional financing through existing or, if needed, new trust funds
- Supporting RE-INVEST events. In addition, both sides decided to work in other areas and themes as jointly decided. France was represented by H.E Christan TESTOT, Minister Counsellor and François-Joseph Schichan, Second Counsellor (Political), French Embassy in India.
In a short span of time ISA activities have increased significantly. Two Programmes of the ISA “Affordable finance at scale” and “Scaling solar applications for agricultural use”, have been launched. In addition, USA, UK and EU have evinced interest in developing additional programmes. Further, Interim Administrative Cell of International Solar Alliance (ISA Cell) and the UNDP have joined hands for promoting ISA objectives in 121 prospective ISA member countries. This apart establishment of 24x7 knowledge centre is under way with the help of UNDP and NIC, Government of India.
The ISA was launched at the UN Climate Change Conference in Paris on 30 November by Indian Prime Minister Narendra Modi and French President Francois Hollande. India is the largest client of the World Bank Group. Between 2015 and 2016, the Group lent around $4.8 billion to India. This includes $2.8 billion from the International Bank for Reconstruction and Development (IBRD), $1.0 billion from the International Development Association (IDA) and approximately $1.0 billion in investments from the International Finance Corporation (IFC).
Also Read: World Bank Prez Kim meets PM Modi; appreciates India’s rapid progress in ease of doing business
According to the World Bank Press Release, as of June 2016, total IBRD and IDA net commitments stood at $27 billion (IBRD $16 billion, IDA $11 billion) across 95 projects. At the end of May 2016, IFC’s India portfolio contained 248 projects, amounting to a committed and disbursed exposure of approximately $4.4 billion.
World Bank, India Sign Deal to Boost Solar Globally
The World Bank also announced that it planned to provide more than $1 billion to support India’s ambitious initiatives to expand solar through investments in solar generation. The World Bank-supported projects under preparation include solar rooftop technology, infrastructure for solar parks, bringing innovative solar and hybrid technologies to market, and transmission lines for solar-rich states. These solar investments for India combined would be the Bank’s largest financing of solar for any country in the world to date.