ISA Unveils $100 Million Solar Initiative and Insurance Mechanism to Boost African Solar Power
The International Solar Alliance (ISA) is set to launch a groundbreaking $100 million fund and an innovative insurance mechanism at its inaugural international solar festival in the national capital this week. The $100 million Global Solar Facility aims to leverage up to $1.5 billion in investments to expand decentralized solar power across Africa, where over 700 million people lack access to electricity.
ISA Director General Ajay Mathur announced that the fund will initially focus on decentralised solar systems in Africa. The goal is to catalyse significant investments, with $39 million already committed and hopes to reach $50 million soon, which would operationalise the fund. The festival will also reveal the investment manager for the fund.
In addition, ISA is developing an insurance mechanism in collaboration with the Multilateral Investment Guarantee Agency (MIGA) of the World Bank. This mechanism aims to mitigate risks and accelerate funding for solar projects in least developed countries. Last year, MIGA issued a $50.3 million guarantee for solar mini grids in Congo, and similar agreements are in the works to enhance the scale of solar investments across Africa.
The festival aims to foster global solar adoption by building partnerships, unlocking financing, and deploying cutting-edge technology. It will serve as a platform to accelerate the transition to affordable and sustainable solar energy, aligning businesses, policymakers, and financial institutions.
The ISA, initiated by India and France, seeks to combat climate change through solar energy deployment and is committed to creating a vibrant and sustainable future.