Innovative financing instruments

The Solar Risk Mitigation Initiative (SRMI), launched at the COP24 by the World Bank (WB) and the Agence Francaise de Développement (AFD) in support of the International Solar Alliance (ISA), aims at supporting the development of bankable solar programs in developing countries leveraging private sector investments. World Bank has also committed 337 million USD Risk Mitigation Fund for 23 member countries in off grid sector (ROGEP) in Africa in partnership with ISA. The European Investment Bank (EIB) has started working on a 60 Million Euros grant project to create a concessional financial facility and risk mitigation Fund to promote off grid applications in Africa.

Scaled-up and low cost financing for solar investments

The Export Import Bank of India (EXIM Bank) has committed to provide financing for solar projects worth USD 1.4 Billion. AFD, bilateral agency of France has committed to provide financing for solar projects worth 700 million Euros. The ISA secretariat has requests to Australia, the UK and the Netherlands provide concessional funding on the pattern of India and France.

Technical Assistance for project preparation

Asian Development Bank has approved a Technical Assistance program of USD 2 million for ISA member countries in South Asia. These funds would primarily be utilized for support solar project preparations.

Develop Solar Energy Financing Roadmap

To strengthen ISA’s partnership with the MDBs and DFIs and develop a financing roadmap for mobilizing USD 1000 billion by 2030, a joint mission by the MDBs and DFIs was received at the ISA secretariat, supported by E&Y-a global advisory firm, from 12-14 June 2019. The Joint Mission had representation from various MDBs and DFIs, including the World Bank, the Asian Development Bank, the African Development Bank, the Asian Infrastructure Investment Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the International Finance Corporation, the French Development Agency, the Department for International Development of the UK, the Japan Bank for International Cooperation, the Japan International Cooperation Agency, the German Development Bank (KfW) and the Export-Import Bank of India.

Various leading global consulting and research firms, including E&Y, Deloitte, PwC, KPMG, Dalberg, McKinsey & Co, Bridge to India, Bloomberg New Energy Finance and Edelman also participated actively during the Joint Mission. The Mission covered the following key issues:

• Building a roadmap for mobilizing USD 1000 billion by 2030
• ISA’s programmes and synergy with MDBs’ and DFIs’ investments
• Enhancing ISA-MDBs-DFIs collaboration for scaling up solar investments

A Working Document ISA/SC.01/WD.10 considered by the first meeting of the Standing Committee presented the summary and recommendations made during the Joint Mission, along with the detailed Joint Mission report in its Annex.