ISA report identifies $192 billion investment opportunity for solar based DRE solutions – EQ Mag
At the current pace of progress, IEA estimates that 660 million people in the Global South will still lack electricity access by 2030 — the year to achieve Sustainable Development Goals (IEA, 2022)
The global share of the population without access to electricity was nine percent (675 million) in 2021 and it would take $192 billion to electrify their households, a report released by the International Solar Alliance (ISA) on July 20 stated.
The report – Roadmap of Solar Energy for Universal Energy Access – released at a side event of the fourth G20 Energy Transition Working Group (ETWG) meet in Goa, also stated that around 59 percent (396 million people) of the unelectrified population can be best suited for electrification through solar-based mini-grids, about 30 percent (203 million people) through grid extensions and the remaining 11 percent (77 million people) through decentralized renewable energy (DRE) solutions.
“To achieve this, a total investment of around $192 billion will be required, comprising $97 billion in solar-based mini-grids for approximately 25,738 MW of capacity; $18 billion in solar-based DRE solutions for about 1,224 MW of capacity; and $78 billion in grid extensions for the required infrastructure,” the report said.
Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy, said the lack of energy access should be seen as an emergency. “People see DRE as a few RE-powered lightbulbs, instead of how it can increase production and economic growth, and reduce our reliance on fossil fuels. We have the technologies and capacity we need, what we don’t have is the right amount of financing to scale these business models,” she said.
Addressing the G20 ETWG event, Pankaj Agarwal, Secretary, Ministry of Power, said there has been significant convergence on hydrogen-related issues and that the working group has taken note of green hydrogen innovation centre proposed by India and the Global Biofuel Alliance which is proposed to be launched by India.
“There has been substantive meeting of minds on low-cost financing for energy transition. The Working Group has taken note of the voluntary action plan proposed by India for doubling of pace of energy efficiency by the year 2030,” Agarwal said.
Bhupinder Singh Bhalla, Secretary, Ministry of New and Renewable Energy (MNRE), said the challenge to provide universal energy access cuts across other global energy transition issues. “Unless we make rapid strides towards providing reliable, sustainable, and affordable energy access to all, our progress in other areas will get hampered. India has made ambitious commitments as part of our transition towards clean energy,” he said.
India plans to achieve 50 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
Bhalla said although a wide variety of renewable technologies are available, each with their unique advantages, solar energy in particular has emerged as the technology of choice that can play a key role in driving energy access, energy security and energy transition.
The outcome of the working group meeting will be presented to the Energy Ministers for the declaration during the Energy Transitions Ministerial Meeting scheduled for July 22.
The working group successfully organised 15 side events during the meeting, attracting more than 2,000 participants. Two more side events are planned over the next two days leading up to the Ministerial Meeting.
