China is Welcome to be Part of International Solar Alliance

Primary Source: The Hindu

Click here for Daily Current Affairs

Relevance: GS2, GS3, International Relations, International Solar Alliance, ISA, Significance of ISA, Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests, India-China Relations

Prepp Prelims Booster: International Solar Alliance

Prepp Mains Booster: International Relations, Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests, Significance of International Solar Alliance (ISA)

Why in the news?

• Recently, the Power and Renewable Energy Minister of India, R.K. Singh stated that China is welcome to join the International Solar Alliance (ISA) as its membership is open to all.
• He also highlighted the need for diversification in solar panel manufacturing, noting that most countries have begun establishing their own facilities.

What is the International Solar Alliance (ISA)?

• The International Solar Alliance (ISA) is an alliance of 121 solar resource-rich countries situated fully or partially between the Tropic of Cancer and the Tropic of Capricorn, initiated by India.
• It was jointly launched by the Prime Minister of India and the President of France on November 30, 2015, in Paris, on the sidelines of COP21, the UN Climate Conference.
• However, its membership has been opened for all the UN member countries to enable global cooperation and participation.
• The primary objective of the ISA is to collectively work for efficient exploitation of solar energy to reduce dependence on fossil fuels.
• It aims to mobilize over USD 1 trillion of investments by 2030 for the massive deployment of solar energy technologies and pave the way for future solar generation, storage, and technologies for member countries.
• Based in Gurugram, Haryana, India, the ISA Secretariat administers the day-to-day operations and implements the programs and activities of the alliance.

Roles & Responsibilities of International Solar Alliance (ISA)

• ISA engages in building capacity in member countries for the promotion and absorption of solar technologies and R&D.
• It assists countries in developing policies and regulations that promote the development of solar energy.
• The alliance facilitates the sharing of solar technology and best practices among member countries.
• The ISA's overarching goal is to play a significant role in enhancing energy security and providing access to energy in member countries, particularly in remote and inaccessible areas.
• By significantly contributing to the global effort to mitigate climate change, the ISA aims to help countries achieve their targets under the Paris Agreement.
• The ISA has several projects and programs underway, targeting areas such as scaling solar applications for agriculture use, affordable finance at scale, solar technologies, and innovation.
• The ISA is seen as a key platform for collaboration in the fight against climate change through the promotion of solar energy, offering opportunities for cooperation in solar resource assessment, reducing the cost of finance and technology, and fostering innovation and knowledge sharing.

Global Solar Panel Market

• China's Dominance: China remains the largest producer and supplier of solar panels globally, responsible for about 80% of the manufacturing capacity for polysilicon wafers and above.
• Manufacturing Diversification: There is an ongoing effort to diversify the manufacturing of solar panels.
• International Solar Alliance (ISA) Goals: The ISA is aiming to mobilize $1 trillion in solar energy solutions by 2030. This includes a target to deliver energy access to a billion people and install 1,000 GW of solar energy, which would help to cut a billion tonnes of CO2 annually.
• Focus on Africa: Despite Africa receiving less than 3% of the $310 billion invested in solar power globally, the ISA is focusing on expanding solar panel installations in the continent, including investments in solar start-ups.
• China's Role in Africa: China is a significant investor and developer of clean energy projects in Africa, with countries like South Africa dramatically increasing their imports of solar panels from China.
• Shift in Trade Dynamics: Europe and Brazil are major importers of solar panels, with Europe importing 66 GW and Brazil 9.5 GW, overshadowing Africa's imports.
• India's Reduced Dependency: India has reduced its dependence on Chinese solar panels by boosting its domestic manufacturing. It has significantly decreased its panel imports from China, going from 9.8 GW in 2022 to only 2.3 GW in 2023, while increasing imports of solar cells to support its own panel production and export.

Need to Focus on Africa

• Africa's Investment Deficit: The International Solar Alliance (ISA) identified that a tiny fraction of global solar investment, less than 3% of $310 billion, was directed towards Africa. This is disproportionate considering the continent's vast potential for solar energy and its energy access challenges.
• ISA's Goal for Africa: To rectify this investment shortfall, the ISA has set ambitious targets to mobilize $1 trillion in solar energy solutions by 2030, aiming to provide energy access to a billion people and to install 1,000 gigawatts (GW) of solar capacity.
• Investment in Solar Start-ups: As part of its commitment, the ISA has backed 20 solar start-ups in Africa over the past year. These investments focus on enhancing the scale of solar infrastructure, which includes large solar plants, as well as more decentralized solutions like solar micro-grids, rooftop installations, and solar-powered cold storage systems.
• India's Contribution: Shifting from being a significant importer of Chinese solar panels, India has augmented its domestic manufacturing capabilities. This transition enables India not only to reduce dependencies but also to establish itself as a solar panel supplier, potentially serving markets including Africa.

China’s Current Status and Role in Solar Energy

• Major Producer and Supplier: China is the largest producer and supplier of solar panels globally, holding 80% of the manufacturing capacity for components such as polysilicon wafers.
• Global Exports: The country's exports of solar panels have increased significantly, with a 34% growth over the previous year, amounting to 114 gigawatts (GW). This surpasses the total installed solar capacity of the United States.
• African Market Presence: In Africa, China is a dominant investor and developer of clean energy projects. African countries have significantly increased their imports of Chinese solar panels, with South Africa quadrupling its imports in the first half of 2023.
• Comparison with Other Regions: Although Africa has increased imports from China, these are still less compared to Europe's 66GW and Brazil's 9.5GW imports.
• Impact on India's Solar Industry: India, which used to be a significant importer of Chinese panels, has shifted towards boosting its domestic solar panel manufacturing.
• Potential ISA Membership: Despite China's pivotal role in the global solar panel market, it is not a member of the International Solar Alliance (ISA), although the alliance has expressed openness to Chinese membership.

India’s Current Position and Policy Shifts

• India's Leadership in ISA: India, alongside France, took the lead in forming the International Solar Alliance (ISA) in 2015, emphasizing its commitment to renewable energy and sustainable development.
• Reduction in Solar Panel Imports: India has significantly reduced its dependency on imported solar panels from China, a move aimed at boosting domestic manufacturing. In 2023, imports amounted to only 2.3GW, a sharp decrease from the 9.8GW imported in 2022.
• Manufacturing Expansion: In the wake of the pandemic and the need to diversify manufacturing, India has taken steps to increase its manufacturing capacity of solar panels and cells.
• Policy Shifts for Self-reliance: The reduction in imports and the increase in domestic production reflect India's policy shifts toward self-reliance in solar energy equipment.
• Export Orientation: India is not only focusing on meeting its domestic demands but is also gearing up to export solar cells and panels, indicating a strategic shift in its role from a primary importer to a potential exporter in the global solar market.
• Focus on Africa: India's involvement in the ISA includes a significant focus on increasing solar investments in Africa, contrasting with its previous heavy reliance on Chinese imports for solar energy infrastructure.

Significance of International Solar Alliance (ISA)

For India

• Renewable energy leadership: India has set an ambitious target of 450 GW of renewable energy capacity by 2030. The International Solar Alliance (ISA) can assist India in meeting this target by boosting solar energy installations in member countries.
• Soft power in international affairs: By taking the lead in the ISA, India can strengthen its reputation as a responsible global player devoted to long-term development.
• Climate change adaptation: India is particularly vulnerable to the effects of climate change as a developing country, and the ISA can assist India in its efforts to prevent and adapt to climate change.

For World

• Promoting clean energy: The ISA's major goal is to promote solar energy as a clean, renewable, and sustainable energy source. This is critical for meeting climate change targets.
• Encourage solar energy investment: The ISA intends to mobilize over a trillion dollars in solar energy investment by 2030. This can open up new options for enterprises while also stimulating economic growth.
• Supporting energy availability: The ISA's emphasis on solar energy can aid in increasing energy access, particularly in rural and remote locations. This has the potential to contribute to poverty reduction and general human development.

Limitations of International Solar Alliance (ISA)

• Funding: While the organization has received funding from a number of countries, including France and India, large financial resources are required to realize its goals of promoting solar energy in underdeveloped countries.
• Participation is limited: Currently, more than 100 nations have signed the ISA Framework Agreement, which is much less than the total number of countries in the globe, limiting the ISA's potential to achieve its aims and grow its influence.
• Policy coordination: Because countries' energy policies and regulations differ, it is difficult to harmonize them and provide a level playing field for solar energy.
• Implementation: Due to reasons such as a lack of infrastructure, political instability, and insufficient financing, solar energy project implementation can be difficult, resulting in a lack of successful implementation of its projects.

Technological Challenges

• Integration with Existing Grids: One of the biggest technological challenges is integrating solar power with existing power grids. Many of the countries involved have varying standards and states of grid infrastructure, which can make it difficult to efficiently distribute solar energy.
• Storage Technologies: Effective energy storage solutions are necessary to address the intermittent nature of solar power. Developing and deploying batteries and other storage technologies that are cost-effective, durable, and scalable remains a challenge.
• Technology Transfer and Intellectual Property: There can be difficulties in transferring technology between countries, often due to intellectual property rights and associated costs.
• Standardization and Quality Control: Ensuring consistent quality and performance standards across different nations is a complex issue. Standardization is essential for equipment, installations, and operations to ensure safety and reliability.

Way Forward

• Increase collaboration: By collaborating with international organizations, governments, and private sector entities, the organization will be able to utilize resources and knowledge in the solar energy sector.
• Membership should be expanded by engaging with other nations, particularly those with a high potential for solar energy. This can serve to broaden the organization's reach and influence.
• Implement policy changes: Focus on implementing legislative reforms in member nations to remove barriers to solar energy adoption, such as providing incentives and eliminating fossil fuel subsidies.
• Facilitate financing: By establishing a fund or collaborating with international financial institutions, ISA can help member countries finance solar energy projects.
• Encourage and promote innovation: By sponsoring research and development efforts and providing a venue for sharing best practices and expertise, ISA can encourage and promote innovation in the solar energy sector.

Conclusion

Despite geopolitical tensions and the dominance of China in solar manufacturing, the ISA extends an open invitation to enhance global collaboration. The ISA remains focused on its commitment to expand solar energy, especially in underinvested regions like Africa, while also encouraging self-sufficiency in solar manufacturing among member countries.

(*Click this link to read prelims specific weekly current affairs articles)

FAQs

MCQs

Question: Consider the following statements: (2016)

1) The International Solar Alliance was launched at the United Nations Climate Change Conference in 2015.

2) The Alliance includes all the member countries of the United Nations.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Question: In the Mekong-Ganga Cooperation, an initiative of six countries, which of the following is/are not a participant/participants? (UPSC 2015)

1. Bangladesh
2. Cambodia
3. China
4. Myanmar
5. Thailand

Select the correct answer using the code given below.

(a) 1 only

(b) 2, 3 and 4

(c) 1 and 3

(d) 1, 2 and 5

Question: What is the targeted solar energy installation goal of ISA by 2030?

(a) 500 gigawatts (GW)

(b) 750 gigawatts (GW)

(c) 1000 gigawatts (GW)

(d) 1250 gigawatts (GW)