The urgency of the climate crisis cannot be overstated. We stand at a pivotal moment in history, teetering on the edge of dramatic irreversible consequences. At the 2015 Paris COP21, the world entered into a new compact to address the climate crisis: India and France announced the creation of the International Solar Alliance (ISA) to promote this key resource to help the world move away from fossil fuels.
In 2023, the Paris Pact for People and the Planet and the G20 Delhi Declaration signalled that no country should have to choose between eradicating extreme poverty and tackling the climate crisis. Leaders recognised the importance of tailoring development and climate strategies to each nation’s unique circumstances, backed by a commitment of an additional $200 billion from multilateral development banks. This is pledged to accelerate a just transition towards clean energy models.
At the heart of this shift to meet net-zero targets is solar energy. A majority of the world recognises that this source of power will carry us to the future we want – sustainability based on a low-carbon economy and affordable energy for all. With investments surpassing $300 billion and accounting for over 11% of global energy investments, the potential of solar PV energy is staggering. However, these investments remain concentrated in specific regions, leaving vast untapped solar potential in emerging and developing regions. To expedite progress, we must prioritise equitable distribution of resources.
A significant hindrance to solar expansion is upfront investment costs. Low- and middle-income countries face a crucial challenge in obtaining affordable financing. This leaves them trapped in a cascade of costly payments for fossil fuels.
The Paris Summit for a New Global Financing Pact stated: “Explore all the ways and means to mobilise and increase financial resources, including from the private sector, to unleash this potential for all.” The public-private approach can reduce costs and make renewable projects financially viable. In the Maldives, a World Bank financial mechanism enabled project costs to drop from 15 to 9.8 cents per kilowatt-hour. This breakthrough against default risks and currency fluctuations garnered interest from investors, offering one of the lowest costs for electricity in the small island developing States. A substantial boost in this type of financing, coupled with risk underwriting, is essential to unlock the private investment surge we need, especially in Africa.
Africa currently accounts for only 1.3% of the world’s installed solar capacity. With nearly 600 million people in Africa lacking access to electricity, the case for distributed solar is compelling. It offers a path to energy independence and reduces reliance on fossil fuels. Furthermore, the cost of solar PV energy is now competitive: At $24/MWh, it is lower than that of either coal or natural gas. The dramatic decrease in solar module costs over the past decade highlights the all-round benefit of investing in solar energy including jobs generation — in 2022, the solar PV industry employed 4.9 million workers, with a remarkable 40% full-time positions for women.
There are many other challenges on top of this financial question: Institutional and technical capacities in solar projects, for example, which is being addressed by the ISA through its partnership with the United Nations Industrial Development Organisation setting up STAR Centres with the financial support of the French government.
But it all comes down the same road. To put the energy sector on a pathway to limit warming to +1.5°C, we must triple the global renewable energy capacity by 2030. Therefore, the way forward requires a substantial increase in investments, and partnerships among governments, the private sector, and financial institutions through a clear political commitment. India and France, as chair and co-chair of the ISA, are determined to achieve this.
On solar energy just like on other global issues, the focus of the Indo-French strategic partnership is on scaling up solutions. President Emmanuel Macron and Prime Minister Narendra Modi highlighted this ambition when they met in Paris in July 2023. In a world of rising international tensions, where fragmentation risk can imperil our collective efforts to protect the people and the planet, France and India will keep joining forces for progress.
RK Singh, Union minister of power and new & renewable energy, is president and Chrysoula Zacharopoulou, minister of state for development, francophonie and international partnerships, France, co-president of the International Solar Alliance. The views expressed are personal
