International Solar Alliance (ISA)

Choose the Correct Answer

Correct Answer : Option a

Explanation
​Overview: The International Solar Alliance is a common platform for cooperation among sun-rich countries lying fully or partially between the Tropics of Cancer and Capricorn who are seeking to massively ramp up solar energy, thereby helping to bend the global greenhouse emissions curve whilst providing clean and cheap energy. Countries, bilateral and multilateral organisations, companies, industries, and stakeholders aim to reduce the cost of finance and cost of technology for the immediate deployment of competitive solar generation, storage and technologies adapted to countries' individual needs and to mobilize billions of dollars for solar. The initiative was launched at the UN Climate Change Conference in Paris at the end of 2015 by the President of France and the Prime Minister of India.

Statement 1 is not correct: The first phase will connect the Indian grid with the Middle East, South Asia, and South-East Asia grids to share solar and other renewable energy resources.

Statement 2 is correct: As a new international organisation that brings together states and non-state actors, the ISA is intricately connected to the energy transition not only in India, but also in other parts of Asia and Africa, which form the bulk of its membership. The making of the ISA illustrates how solar power became central to India’s strategies for a clean energy future and the geoeconomic strategy underlying India’s decision to take on a leadership role at the global level. The ISA is a deliberate instrument of Indian economic statecraft that syncs its economic (finance and technology for a clean energy transition) and national security (energy security) priorities. The treaty-making process—led primarily by India—illustrates a new kind of economic diplomacy, wherein India not only reached out to solar-rich developing countries with shared interests, but also actively sought to bring on board developed countries and other non-state actors with keen financial interests in these untapped markets.

Statement 3 is not correct: One of the stated goals of the ISA is to mobilise USD 1 trillion till 2030 for a large-scale deployment of affordable solar energy in the developing world, especially in the poorest regions of the world that still lack energy access. Despite highlighting the tremendous potential for market growth in solar-rich member countries, the ISA’s efforts to coalesce global finance and technologies in areas that need it the most have not yielded any significant results. Since its creation, India and France are the only two countries that have made financial contributions to the ISA: India has committed to extending nearly USD 1.4 billion worth of lines of credit, and the French Agency for Development has committed approximately EUR 1 billion for solar projects (France in India, 2018). In addition, the budget and financial resources of the ISA are dependent on voluntary contributions from member countries and partner organisations. India is the only country extending financial support for ISA’s corpus and recurring expenses—an initial corpus of USD 27 million was provided by India for a five-year period, with additional contributions of USD 1 million each by the Solar Energy Corporation of India (SECI) and Indian Renewable Energy Development Agency (IREDA). However, with membership fees being voluntary, the future of ISA’s functioning appears to be uncertain as the initial five-year period of the ISA corpus draws to a close.