R. K. Singh, Union Minister for Power and New & Renewable Energy emphasised the role of insurance for renewable energy projects, payment security mechanism and debt financing in attracting investment into renewable energy
Recently, Chrysoula Zacharopoulou, Minister of State for Development, Francophonie, and International Partnerships attached to the Minister for Europe and Foreign Affairs, met with R. K. Singh, Union Minister for Power and New & Renewable Energy, at Shram Shakti Bhawan in the capital. Along with Emmanuel Lenain, the French ambassador to India, Guillaume Pottier, the minister of state's political advisor, and Pablo Ahumada, the embassy's political counsellor, they had come to meet with the Union Minister.
Collaboration to speed the global energy transition powered by solar energy was a major topic of debate, particularly within the framework of the International Solar Alliance, whose co-presidents are France and India.
“We need to help countries who need green funds”
The International Solar Alliance must take on additional solar energy projects, particularly in Africa, according to India's Union Minister for Power and New & Renewable Energy. "The economically powerful nations will find the funding for renewable energy on their own, but the economically underdeveloped nations would require green funds. We will have to assist such nations that require financial aid.
The two sides agreed that nearly half of the African continent lacks access to energy. The Union Power and New & Renewable Energy Minister of India noted that in addition to energy transformation, emphasis must also be placed on guaranteeing energy access and spoke of the necessity to support the ISA's progress in this regard.
The two parties also agreed that because there is currently very limited access to power, decarbonisation is not a problem for Africa. According to the Minister, in this situation, gaining access through solar energy is the easiest and least expensive alternative.
Need Green Energy Insurance, Payment Security Mechanism and Debt Financing
Three funds were cited by the minister as being necessary: procedures for loan financing, payment security mechanisms, and insurance for renewable energy projects. "Once established, these funds will grow, due to contributions and interest payments; in India, too, our investment is coming because of a fund we set up as a payment security mechanism," the Minister stated.
According to Shri R. K. Singh, the ISA should establish a de-risking mechanism, as well as access more green money to support grid-scale solar energy projects in Africa.
The two parties also discussed the possibility of an ISA conference being held in Kenya and noted the country's achievements in the field of renewable energy.
Even though India's per capita emissions are only a third of the global average, the Minister assured the visiting group that India is leading the world in terms of energy transformation. He stated that even though non-fossil fuels currently account for 43% of our capacity, we have committed to lowering our emission intensity by 45% by the year 2030. He continued by stating that India would soon be a global leader in green hydrogen and that the nation is rapidly expanding its capacity for renewable energy sources, both of which will eventually contribute to lower energy prices.