In addition to discussing the body’s intention to mobilize $1 trillion investment in solar by 2030 at WFES in Abu Dhabi, the ISA used its first-ever gathering to initiate new project deployment across its member states and sign its first financing commitment.
The association signed a letter of intent with India’s private sector lender, YES Bank, which pledged to mobilize $1 billion until 2023 and $5 billion until 2030 towards financing solar energy projects in India.
In its press release, the bank said it had signed five solar energy co-financing letters of intent with Hero Future Energy (up to 1.5 GW capacity), Greenko Group (up to 10 GW capacity), Amplus Solar (up to 1 GW capacity), Jakson Group (up to 1 GW capacity) and Tata Power Delhi Distribution Limited (up to 10 MW capacity) for their solar projects in India, to be completed by 2023.
Furthermore, the ISA signed deals for nine projects, which will be deployed in the UAE, Saudi Arabia, Nigeria, India and Spain, with the help of eight companies, including Vyonarc Development Ltd., Waree Engineers, Gensol Group, SOLARIG, Shakti Pump, Refex Energy, Amplus Solar, and Zodiac Energy.
“The best way to get going is to get projects on the ground. That is what we call action to transaction, and that is what ISA is all about,” said Upendra Tripathy, Interim Director General of the India-based ISA.
Ministers from seven ISA member states attended the forum and spoke about their hopes for the solar industries in their countries.
For the treaty-based inter-governmental alliance of 121 solar-rich countries, this is only the beginning of its push for new solar projects. At the two upcoming events in New Delhi, the ISA will seek to launch a signing ceremony, which would mark the identification of over 100 new solar projects, potentially all from ISA member countries.
Earlier this week, addressing WFES, International Renewable Energy Agency (IRENA) Director General, Adnan Amin pointed out solar’s central role in the energy future, discussing the key findings of the agency’s latest report delivered at its 8th annual Assembly in Abu Dhabi, showing a 73% drop in solar costs since 2010.
“Solar energy will play a central role in the new age of energy. Solar is the fastest growing energy source,” said Adnan Z Amin, director general of IRENA, adding that the chief driver behind the impressive drive of solar is its strong business case.
“These downward trends are expected to continue. Our analysis finds that over the next decade, costs for solar PV could drop by a further 60%, and concentrated solar by almost 45%,” added Mr Amin.