Solar to the rescue

In New Delhi, India

The future of energy is solar. That was the resounding message to world leaders during the Sixth Session of the Assembly of the International Solar Alliance (ISA), which met in New Delhi, India last week. The leaders emphasised that the ability of the sun to power the globe and replace environmentally harmful sources of energy remains scarcely tapped, and at the same time called for immediate policy and funding interventions to grow uptake.

At the centre of the energy revolution by the ISA, is an ambitious programme to provide funding to solar projects in developing countries. Dubbed the “Global Solar Facility” (GSF), this revolutionary approach to catalysing the energy shift seeks to grow solar investments around the world, especially among Africa’s underserved regions. It focuses on decentralised solar solutions, rooftop solar equipment, and productive use of solar.

During the meeting, the ISA announced an increment of the viability gap funding for these projects from 10 per cent to 35 per cent of the project cost, underpinning the strategic shift the alliance is making towards the adoption of new solar technologies.

This, said Mr Raj Kumar Singh, the Indian Cabinet Minister for Power, New and Renewable Energy, would “enable more investments to flow into Africa”. The ISA funding programme currently provides for a grant of up to Sh22.7 million ($150,000) or 10 per cent of the project cost, whichever is lower, per country per project, and this enhanced funding is expected to spur infrastructure projects and attract more private players in the sector, said Mr Kumar, who is also chairman of the ISA.

“Around 80 per cent of the global population resides in countries that depend on fossil fuel imports, totalling a staggering six billion people,” said Mr Kumar, adding that “renewable energy sources have the potential to supply 65 per cent of the world’s total electricity by 2030 and decarbonise 90 per cent of the power sector by 2050”.

That the sun is at the centre of the green energy revolution is in no doubt. What is, however, is whether governments are willing to create the right fiscal and policy environments to encourage investment and bring the cost of acquiring such equipment as panels and storage batteries down.

Multiple studies have shown that the world requires massive investments in this sector. The ISA, for instance, puts that requirement at $12.5 trillion in renewable energy and $23 billion in off-grid solar by the year 2030 if the global population is to achieve universal energy access while making the transition to clean sources. Currently, global solar investments make only 10 per cent of the required amount to make the shift to net-zero, and this, said Mr Kumar, is not sustainable.

The greatest need is perhaps in Africa, where access to energy remains a grossly unmet need, with a large portion of the population lacking access to reliable electricity. While the situation has been gradually improving in some regions, various reports have estimated that more than half of the population in sub-Saharan Africa lacked access to electricity as late as at 2022.

Various initiatives have been implemented to improve energy access in Africa, including the development of renewable energy sources, such as solar, wind, and hydroelectric power, as well as the expansion of energy infrastructure and the promotion of energy-efficient technologies. Additionally, regional cooperation and international partnerships have played a crucial role in supporting the development of energy projects and improving access to electricity in many African countries.

In Kenya, solar technologies have been deployed to various degrees, especially in rural areas. A spot check in Nairobi showed that many businesses now stock solar panels, storage batteries, inverters, pumps and associated merchandise, which are often used in off-grid areas. New lighting technologies include security lights that come with standalone panels and motion and light sensors. These have proved to be particularly popular with Kenyans, who see them as cheaper and more convenient alternatives to conventional on-grid electricity.

   President William Ruto has been at the forefront of pushing for this shift to clean sources of energy, noting in various speeches that it would not only improve access to electricity, but also contribute to the economic development of the country while at the same time reducing greenhouse gas emissions.

Speaking in Nairobi in June this year, President William Ruto noted that sustainable energy development is at the heart of his government’s agenda, and that “investing in renewable energy sources such as solar, wind, hydro, and geothermal power is not only a responsible choice but also a pathway to a more prosperous and equitable Africa”.

“By transitioning from fossil fuels, we shall contribute to global efforts to mitigate climate change, protect our environment, and secure a sustainable future for generations to come,” said the President.

His sentiments were echoed in New Delhi last week by almost every delegate who addressed the plenary, with the co-president of the ISA assembly, Ms Chrysoula Zacharopoulou, who is also France’s Minister of State for Development, Francophonie and International Partnerships, saying that, for France, the ISA is a key initiative to promote the development of clean energy and thus combat climate disruptions.

“France is taking action and we are determined to accelerate,” said Ms Zacharopoulou. “Last year, we provided over 7.5 billion euros in climate finance to our partners. These are not mere figures, but concrete projects, such as the construction of the Onigbolo solar power plant in Benin, which we completed this year, bringing 25 megawatts of clean energy to the people of Benin.”

“We also support our partners in formulating and financing their fair energy transition plans. This is the founding principle of all our international partnerships: to be based on national agendas and priorities. The solar revolution must be backed up by a broader strategy of access to energy.”

That broad strategy was evident on the streets on New Delhi and the neighbouring Uttar Pradesh during the Nation’s visit of these regions. In the capital, the Nation visited several solar panel production plants, including Alfa Solar Solutions, Greentech India and Birkan Engineering Industries. The panels produced here are supplied to households and businesses not only in India, but also across the border in Pakistan and other neighbouring countries. Some are sold in Africa as well.

On the streets of New Delhi, this green energy revolution is perhaps being fronted by the Tata Motor Corporation, whose fully electric cars dot various streets in this sprawling metropolis every day.

Speaking of this shift, Dr Ajay Mathur, director-general of the ISA, said global leaders needed to urgently accelerate the build-up of solar energy, especially in developing countries, “and in applications that influence the daily lives of those without access to reliable energy – such as getting electricity from solar mini-grids, powering agricultural pumps, and running cold storages”.

He added: “We are working on developing STAR Centres in countries which will be a hub of technology, knowledge, and expertise on solar energy. In addition, ISA is enabling solar mini grids to provide universal energy access, especially where grid extension is too expensive.

Guarantees help in crowding-in private sector investment, and ISA has developed such a mechanism to provide guarantees through its Global Solar Facility to its member countries in Africa. We are also enabling entrepreneurs in these countries who can, with help, become major suppliers of solar energy across countries and regions.”

How Solar is changing Africa

1 Off-grid solar solutions: Solar panels are being deployed in off-grid and remote areas of Africa to provide electricity to communities that are not connected to the traditional power grid. These small-scale, decentralised solar systems, often in the form of solar home systems, micro-grids, or solar lanterns, have made a significant impact in improving access to electricity in rural and underserved areas.

2 Grid-connected solar power: In addition to off-grid solutions, grid-connected solar power plants have been developed in various African countries. These utility-scale solar installations feed electricity into the national grids and help meet the growing demand for energy in urban areas.

3 Solar water pumping: Solar energy is also used for water pumping systems, particularly in agriculture. Solar-powered water pumps help farmers access a reliable source of water for irrigation and livestock, improving agricultural productivity and food security.

4. Solar for health and education: Solar energy is used in healthcare facilities and schools to power lighting, medical equipment, and educational tools, particularly in areas with unreliable or no access to grid electricity.

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