Context: The International Solar Alliance (ISA) will launch a $100 million fund, Global Solar Facility, that will help catalysing up to $1.5 billion in funding to expand decentralised solar power capacities across the least developed countries in Africa, where more than 700 million people have no access to electricity.
About Global Solar Facility (GSF)
- It is a payment guarantee mechanism created by International Solar Alliance (ISA) to stimulate investments in solar power projects.
- It aims to catalyse solar investments across the world, starting with Africa’s underserved segments and geographies, thereby unlocking commercial capital.
- It will primarily focus on decentralised solar solutions, rooftop solar, and productive use solar.
- Through this financing vehicle, which includes payment guarantees, insurance and investment funds, the ISA aims to mitigate project risks, provide technical assistance to address regulatory gaps, reduce currency risks, resolve contractual and financial uncertainties in the solar energy sector.
- In 2022, the ISA Assembly approved the creation of a Global Solar Facility (GSF) in Africa, which was announced at COP27 in Sharm-el-Sheikh.
- After Africa, the GSF aims to expand to regions such as Asia, Latin America and the Middle East, where the Regional Facilities will be tailored to meet specific requirements.
- In future, the GSF will invest in innovative technologies to enhance solar energy efficiency, support startups for faster solar energy implementation, and explore emerging solar energy sectors.