India’s tryst with solar energy has been transformative, and the International Solar Alliance (ISA) stands at the heart of this revolution. As a founding member, India has provided a platform for global collaboration and showcased its potential as a solar powerhouse.
India’s Solar Journey with International Solar Alliance
With its secretariat based in India, the ISA is more than an international body; it symbolizes India’s pledge to lead the solar sector. The alliance’s mission aligns with India’s ambitious goals to expand its solar capacity and reduce carbon emissions. With over 121 member countries, the ISA is a testament to India’s rising influence in the global renewable energy discourse.
The Economic and Geopolitical Impact of ISA
India’s involvement in the ISA is not just about clean energy; it’s a strategic move in the geopolitical arena. By leveraging the ISA, India positions itself as a key player in the global energy market, fostering partnerships and attracting investments. The alliance’s focus on mobilizing finance and technology transfer is crucial for India’s solar sector growth.
The Future of Solar in India
The Indian solar market is poised for exponential growth, with projections estimating a capacity of 195.11 GW in the next five years. Declining costs, technological advancements, and supportive government policies fuel this growth. The ISA’s role in this trajectory is significant, providing a collaborative framework for innovation and capacity building.
Key Functions of The International Solar Alliance
- Mobilizing Investments: The ISA aims to mobilize USD 1,000 billion of investments in solar energy solutions by 2030.
- Energy Access: It strives to provide energy access to 1,000 million people using clean energy solutions.
- Capacity Building: The ISA focuses on capacity building to install 1,000 GW of solar energy capacity.
- Reducing Carbon Emissions: The ISA helps mitigate global solar emissions by approximately 1,000 million tonnes of CO2 annually through initiatives.
- Programmatic Approach: The ISA has 9 comprehensive programs, each focusing on a distinct application to help scale the deployment of solar energy solutions.
- Collaboration: It partners with multilateral development banks, development financial institutions, private and public sector organizations, civil society, and other international institutions.
- Advocacy and Analytics: The ISA engages in advocacy and analytics to create a favorable environment for solar energy investments.
Initiatives:
- Ease of Doing Solar Report: The ISA releases reports like the ‘Ease of Doing Solar Report 2022’ to identify high solar energy performers and facilitate the solar market.
- World Solar Bank: ISA is set to launch the World Solar Bank to support solar energy deployment globally. Every country has different energy requirements. The Solar bank allows all members to barter energy according to their needs and ability to generate electricity.
- Coalition for Sustainable Climate Action: The ISA institutionalizes engagement with the private and public corporate sectors through this coalition.
Outreach and Support:
- ISA CARES: An initiative to deploy solar energy in the healthcare sector, especially in response to global challenges like pandemics.
- ‘One Sun, One World, One Grid’ Initiative: This initiative envisions harnessing interconnected grids to enable the energy transition to a low-carbon world.
The ISA’s functioning is geared towards creating a sustainable and solar-powered future, strongly emphasizing cooperation among nations, especially those with high solar potential.
Indian Solar Stocks on the Rise
As India plans to meet 2/5th of ISA’s target for energy reserves, the Indian green energy sector will see an impact. Here are 10 Indian solar stocks that could be influenced by the ISA’s activities:
- Adani Green Energy Ltd (AGEL) is one of the largest renewable companies in India. With a market cap of Rs 2,96,230 Crores and a net worth of Rs 7,350 Crores, AGEL is at the forefront of the solar energy revolution. With a capacity of 8,216 MW and a target of reaching 45 GW by 2030, it is a leader in the field.
- Tata Power Company Ltd – With a significant investment in solar power, Tata Power is diversifying its energy portfolio towards clean energy. Holding a wind energy generation capacity of 982 MW and 3,136 MW.
- JSW Energy Ltd – JSW Energy has been actively expanding its solar energy capacity contribution of 2.4GW to its total generation capacity commitments of 12GW, aligning with the ISA’s objectives.
- Suzlon Energy Ltd—A major player in renewable energy, Suzlon is venturing into solar power to complement its wind energy business. The company has installed and commissioned 340 MW of solar power across various states and registered a 1,500 MW wind-solar hybrid park in Rajasthan.
- SJVN Ltd—This state-owned enterprise is increasing its focus on renewable energy, including solar power projects. It is a corporate partner of ISA and is also developing solar power projects with a capacity of 1,352 MW in Maharashtra.
- Waaree Renewable Technologies Ltd – Waaree has India’s largest aggregate installed capacity of 12GW. Specializing in solar PV modules, Waaree is a key contributor to India’s solar energy infrastructure.
- Jaiprakash Power Ventures Ltd—With a diverse portfolio, Jaiprakash Power Ventures is also tapping into the potential of solar energy. It operates the 400 MW Vishnuprayag Hydropower Station and has constructed the 300 MW Baspa II and 1000 MW Karcham Wangtoo Hydroelectric plants.
- KPI Green Energy Ltd—KPI Green Energy is known for its solar power projects and solutions, making it a relevant stock in the context of the ISA. It has an installed capacity of 100 MW and has secured new solar power project orders totaling 9.4 MW.
- Borosil Renewables Ltd – Borosil is enhancing India’s solar capabilities through its solar glass manufacturing. Borosil Renewables has a solar glass manufacturing capacity of 450 TPD, enough to power 2.5 GW of solar power plants.
- Urja Global Ltd—With a capacity of 4,195 MW, Urja Global Ltd. is engaged in solar panel manufacturing and EPC services. It is well-positioned to benefit from the ISA’s initiatives.
Conclusion
The ISA’s influence extends beyond environmental benefits; it is reshaping the economic landscape by driving growth in the solar sector. As India continues to champion solar energy, these stocks represent the potential for robust growth powered by the sun’s endless energy.
FAQs
What is the International Solar Alliance (ISA)?
The ISA is an international organization that aims to promote solar energy among countries located between the Tropic of Cancer and the Tropic of Capricorn. It was co-founded by India and France in 2015 and is headquartered in India.
Who can become a member of the ISA?
Membership is open to countries partially or fully located between the Tropics of Cancer and Capricorn. Countries outside the tropics can join as partner countries.
What are the objectives of the ISA?
The ISA's primary objectives are to efficiently exploit solar energy, reduce dependence on fossil fuels, and promote sustainable development.
How does the ISA plan to achieve its goals?
The ISA plans to achieve its goals through initiatives like mobilizing investments, capacity building, and promoting the use of solar technology among its member countries.
I’m Archana R. Chettiar, an experienced content creator with
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