The Multilateral Investment Guarantee Agency (MIGA) and the International Solar Alliance (ISA) have established the MIGA-ISA Solar Facility, a fund designed to accelerate global solar energy adoption.
About MIGA-ISA Solar Facility:
- The MIGA-ISA Solar Facility is a multi-donor trust fund that combines ISA’s technical expertise and MIGA’s ability to mobilize financing.
- Focus: Initially targets Sub-Saharan Africa, with plans for global expansion.
- Seed funding: ISA committed $2 million, aiming to raise $10 million to support projects.
- This facility is the first initiative under the guarantee component of ISA’s Global Solar Facility (GSF), which plans to raise $200 million for African projects.
- Purpose: Provides concessional financing tools like first-loss instruments and reinsurance capacity to reduce the cost of MIGA guarantees and make projects more bankable.
Significance:
- Aims to boost private investment in solar energy by reducing financial risks, particularly in underserved regions.
- Supports the growth of solar projects in ISA member countries by offering cost-effective risk mitigation.
- Helps close the energy gap in regions that have limited access to clean energy, lowering project costs.
About International Solar Alliance (ISA):
- Conceptualized by India and France at the CoP21 (Paris 2015) summit under the UNFCCC framework.
- Mission: A global platform to drive the large-scale deployment of solar energy technologies, fostering energy transitions in member countries.
- Guided by the ‘Towards 1000’ strategy, which aims to:
- Mobilize $1,000 billion in solar energy investments by 2030.
- Provide energy access to 1 billion people through clean energy solutions.
- Achieve the installation of 1,000 GW of solar energy capacity by 2030.
- Members: 100 countries have ratified the ISA Framework Agreement, with all UN member states eligible to join since 2020.
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Frequently Asked Question:
What is the International Solar Alliance (ISA)?
The ISA is an international organization focused on promoting large-scale deployment of solar energy technologies in member countries.
How does ISA’s ‘Towards 1000’ strategy impact global energy?
The strategy aims to mobilize $1,000 billion for solar investments, provide clean energy to 1 billion people, and install 1,000 GW of solar capacity by 2030.
What is the seed funding for the MIGA-ISA Solar Facility?
The facility started with $2 million from ISA, with plans to raise $10 million.