International Solar Alliance plans bank to fund energy access

Note4students

Mains Paper 2: IR | Important International institutions, agencies & fora, their structure, mandate

From UPSC perspective, the following things are important:

Prelims level: International Solar Alliance

Mains level: India’s initiatives for transition towards Renewable Energy


News

  • The International Solar Alliance (ISA) is going to propose a new bank exclusively for financing energy access to billions.

About the ISA Bank

  1. The bank is still at the ideation stage.
  2. ISA has asked the Asian Development Bank to prepare a concept note.
  3. A public-private partnership is being thought of for the proposed, which will work for 1.2 billion people who lack access to energy as well as the 2.4 billion who lack access to clean energy.

Why need such bank?

  1. According to a recent World Bank report, 600 million people would continue to have no access to energy even in 2040.
  2. Those using kerosene and other fuels that are costlier than renewable options.
  3. The bank would need to prioritise these groups and develop a mechanism.
  4. Existing banks do not focus on universal energy access those still deprived are the poorest of the poor.
  5. Hence ISA needs special finance mechanism which can target these people.

For additional reading, please navigate to the page:

ISA plans global solar bank to finance $150 billion of power projects

Solar Energy – JNNSM, Solar Cities, Solar Pumps, etc.
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