Global solar projects set to get $380+ bn investment this year
Gurugram-based International Solar Alliance has crossed the Rubicon and started winning investment for solar projects across its 116-country members including Africa nations.
“The good thing is that investment flow is increasing, and we expect it to be more than $380 billion this year,” the ISA Director General Dr Ajay Mathur said on 23 Oct 2023.
It was about US$310 billion for the whole of last year, and US$235 billion investment has come in during the first half of this year, Dr Mathur said at the Singapore International Energy Week.
He also elaborated on ISA work. “Our goal is that in every member country we make solar the energy of choice.”
ISA will have 120 member countries by end of this year, up from 116 currently.
Dr Mathur said the challenge is to get investments for small solar plants to reach out to the remote regions as approximately 74 per cent of the investment so far has gone to large scale projects in the OECD and China.
“All of Africa has received just 2-3% from these funds.”
Two-third of the investments have gone into large solar plant and not into smaller projects. “We need to have a lot of investments in energy storage facilities as well as solar, hydro, and battery among others.
The ISA is also focused on capacity building, such as trained and certified people to implement and design solar projects and plants in the future, said the Director General, underlining the need to train bankers on how to assess loan applications for solar development.
The ISA works with member countries and “hand hold” them through project management process as well as helps in creating policy and regulatory framework that are needed for eco-system to happen.
Dr Mathur also sees the Middle East countries playing a bigger role in the development of energy, and cited the example of Abu Dhabi Future Energy Company, MASDAR, which has invested in renewable energy project in 40 countries since it was established in 2006.
“We have seen new investment in solar in Oman and Saudi Arabia,” he said, adding, “All these people will be the new solar producers of tomorrow.” Fiinews.com
