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Nearly A Decade Later, The International Solar Alliance Has Little To Show For Results: Here's Why

Swarajya Staff

Nov 14, 2024, 04:47 PM | Updated Nov 15, 2024, 05:44 PM IST


Representative Image
Representative Image

India was re-elected last week as President of the International Solar Alliance (ISA) for the term 2024-2026, with France serving as Vice-President.

Born out of a joint Indo-French vision, the ISA was launched on 30 November 2015, the first day of the Paris Climate Conference, as an alliance of “sunshine states” — a new grouping of solar-resource-rich countries lying between the tropics.

The creation of the ISA represented a strategic moment for India’s foreign policy, offering a dual opportunity: to take a leadership role in solar energy, reinforce its commitment to climate action, and assert its global influence through a new, treaty-based international organisation.

But as the ISA marks nearly a decade since its launch, India’s flagship global initiative is facing serious headwinds. While global solar energy surged over 30 per cent last year (World Solar Market Report 2024), the ISA has yet to deliver a single operational solar project.

As India and France take the lead once again, will the ISA deliver on its founding promises?

Few Hits

When India and France first pitched the ISA at the Paris Climate Conference, many were sceptical. Today, the alliance has been ratified by 120 countries, showcasing its growing global footprint.

What makes the ISA unique is its inclusivity. From Fiji to South Sudan, and from Australia to France, the ISA brings together diverse nations in a shared commitment to solar energy and climate justice. As Prime Minister Narendra Modi aptly put it during the first ISA Assembly in 2018, this is a step toward a vision of “One World, One Sun, One Grid” (OSOWOG).

The ISA is steadily evolving into a critical platform for the fair production and distribution of solar energy — potentially positioning itself as a renewable alternative to OPEC, says Jawaharlal Nehru University Professor Nalin Mohapatra.

Unlike traditional energy sources such as oil, gas, and coal — which rely on complex extraction and transport processes — solar energy can be produced locally and affordably, empowering nations to harness sustainable energy at minimal cost.

Misses: The Unfinished Business

To truly understand the ISA’s impact, it's crucial to recognise that it was never meant to be a project developer. Instead, it was conceived as an enabler, designed to help nations overcome the hurdles of finance, technology, and regulation, and ultimately scale up solar energy.

However, nearly a decade after its launch, progress has been underwhelming. Despite a robust pipeline, no ISA-backed solar project has gone live yet.

So far, the ISA has entrusted India’s state-run NTPC with consultancy assignments totalling 6.6 GW across 13 countries in Africa and Latin America — 2.87 GW in Africa and 3.75 GW in Latin America.

Out of this, a 60 MW solar plant in Cuba is set to begin following recent auctions, with more projects expected to push the total to around 1,250 MW.

While Cuba’s plant offers a glimmer of success, it also highlights the immense challenges that lie ahead.

Roadblocks: The Hard Truth

The ISA has set its sights high — deploying 1,000 GW of solar power and unlocking $1 trillion in investments by 2030. But reality is proving tough. Despite a global push for solar, attracting investments in solar-rich regions like Africa remains a challenge.

The numbers speak for themselves: global solar investments are just 10 per cent of what's needed to meet net-zero targets.

In 2022, developing countries — home to over half the world’s population — received only 15 per cent of global renewable energy investments. Sub-Saharan Africa saw a 44 per cent drop in per capita renewable energy investment between 2015 and 2021, while North America and Europe saw investments 41 and 57 times higher, respectively.

To make matters more challenging, many of these countries lack experience with large-scale power projects, especially in solar energy, which remains a relatively new and evolving technology.

As Ajay Mathur, Director General of ISA, told Indian Express, “There are no local developers, so the investment has to come from foreign companies. But foreign investors look for policy stability and a sound regulatory environment."

Recognising the significant entry barriers faced by smaller developing nations, especially in Africa, the ISA is now actively working to address these challenges.

One such initiative is the ISA’s $100 million Global Solar Facility (GSF), focusing on Africa’s underserved regions to unlock commercial capital and jumpstart projects.

Mathur is optimistic, noting that "the heavy lifting has been done" and several countries are now ready to launch tenders for solar power projects. The momentum, he says, will soon pick up.

Learning From China's Playbook

The creation of the ISA as a new international organisation signifies India’s commitment to playing a more responsible role in promoting global public goods — like solar energy.

With the expansion of the ISA through initiatives such as OSOWOG, touted as a counter to China’s Belt and Road Initiative (BRI), India now faces the crucial task of ramping up the mobilisation of funds, including from the private sector.

The BRI is viewed globally through three key lenses: Utilitarian, pragmatic, and revisionist, each offering a distinct perspective on its implications for the world order. Despite the controversies and debates surrounding it, China's influence continues to grow, consolidating its global power.

For New Delhi, leading the ISA is not just about hosting its headquarters — it’s about proving the strength of its global leadership through results. The extent to which the ISA meets the needs of the Global South will ultimately define India’s real impact on the global energy transition.


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