The International Solar Alliance (ISA) declared a capital infusion of USD35 million dollar for the Global Solar Facility (GSF), a fund designed to provide payment guarantees and encourage investments in solar power projects.
The funding mechanism, reinforced by payment guarantees, insurance coverage, and investment funds, seeks to alleviate project risks. It aims to offer technical support to rectify regulatory gaps, minimise currency risks, and resolve contractual and financial uncertainties within the solar energy sector. In addition to the $10 million from the ISA, the Indian government is considering contributing $25 million as a capital commitment to the GSF. CIFF and Bloomberg Philanthropies have also pledged to fund the GSF. The Union Minister for Power and New and Renewable Energy mentioned that the goal for the GSF is to secure $100 million, indicating future plans to internationalise the GSF. The ISA underscored that the GSF is specifically structured to provide confidence in investors to engage in projects in Africa, with the goal of providing 10 billion dollar in investments. This initiative aims to facilitate clean energy access in 35–40 million African households by 2030, benefiting approximately 200 million people in the region.