Solar investments dominated by developed nations and China: ISA

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Solar investments dominated by developed nations and China: ISA

Solar investments dominated by developed nations and China: ISA

Industry News
Sep 06,24

The ISA, which was founded at the 2015 Paris climate change conference, is currently working with 92 countries to create an enabling environment for solar deployment.

Solar investments dominated by developed nations and China: ISA

While the global adoption of solar energy continues to accelerate, the majority of investments are still concentrated in developed countries, China, and large developing nations like India. According to Ajay Mathur, Director General, International Solar Alliance (ISA), efforts in low-income countries, especially in Africa, are expected to bear fruit in the coming years.

Mathur acknowledged that although the initial target to attract $1 trillion for solar energy has been met, about 74% of this has flowed to developed nations and China, with India adding to over 80% of the total. He explained that lower-income nations face higher entry barriers, making it harder to compete for investments. Instead of large solar farms, these countries require solar-powered solutions and applications tailored to their specific needs.

The ISA, which was founded at the 2015 Paris climate change conference, is currently working with 92 countries to create an enabling environment for solar deployment. While notable successes have been seen in places like the Democratic Republic of Congo and Cuba, challenges remain. Mathur expressed optimism that more solar projects will begin to materialize in these regions within the next year or two.

The ISA is hosting a two-day "solar festival" in Delhi to foster community participation and promote solar solutions among its 100 member countries. The event aims to share success stories and best practices, with plans to make it an annual gathering.

Mathur also noted that solar deployment in India is poised to accelerate, with recent tenders for round-the-clock renewable energy projects offering electricity prices lower than or equal to new coal power. He believes India is well on track to meet its target of 500 GW of renewable energy capacity by 2030.

However, Mathur highlighted the global challenge of China's dominance in solar manufacturing. With 97% of the silicon ingots used in solar cells coming from China, the price advantage is unmatched. He stressed the need for geographical diversification of solar manufacturing, urging countries like the U.S., India, and Germany to ramp up production of solar cells to compete with China in the long term.

(The Indian Express)