Global Solar Sector investment soars to $380bn in current year, says ISA's Ajay Mathur

ISA

Investments in the global solar sector are set to reach $380 billion this year, according to International Solar Alliance (ISA) Director General Ajay Mathur, as he stated on October 18.

Speaking at the curtain raiser event for the 6th Assembly of the ISA, Mathur outlined three challenges in the solar sector. First, most of the investment is currently concentrated in the OECD countries and China, which calls for the need for broader global involvement. Second, a large portion of funding is going into major solar projects, pointing to a need for supporting smaller solar initiatives such as rooftops and mini-grids. Third, solar manufacturing is currently concentrated in only a few nations and needs to be diversified geographically.

Union Minister for Power and New and Renewable Energy, RK Singh, who is also the President of the ISA, said the ISA has 124 signatories, out of which 94 have ratified. "This is much bigger than other energy organizations like the International Energy Agency (IEA), which has 31 member countries. Besides, 96 countries have already registered to participate in the 6th ISA Assembly, out of which 20 are Ministers. Other organizations such as multilateral development banks and other stakeholders too will participate. We propose to hold the Assembly in Bharat Mandapam, which has just hosted the G20,” Singh said.

Mathur said ISA is planning to perform a solar stocktake which will complement the global stocktake that is set to take place during COP28. “We are moving ahead in supporting the COP Presidency in tripling the renewable energy goal and in doing a solar stocktake which will complement the global stocktake set to occur at COP28. The Green Hydrogen Innovation Centre website is already operational. One training has already taken place in Africa, at the same venue as the African Green Hydrogen Association meeting," he said.

The ISA is also looking at new programs such as 'Solar for She', which will focus on involving women in renewable energy projects. "Our goal is to encourage more women to become entrepreneurs in the solar sector. Also, we will update the Assembly about the Global Solar Facility and SolarX Startup Challenge," he said.

The Assembly, an annual gathering and the ISA's top decision-making body, currently counts 90 of its 109 signatories as full members. India presides over the ISA Assembly, with France as co-president.

The upcoming Sixth Assembly will focus on energy access through solar mini-grids, mobilizing finance for solar deployment, and diversifying the solar supply chain and manufacturing.

Mathur said, “Solar energy will play a pivotal role in achieving the target of tripling the renewable capacity by 2030." He further highlighted that while clean energy investments have grown by 12% annually since 2020, the bulk is concentrated in select nations, with many developing countries, especially in Africa, receiving a minor share.