Global solar investment to touch $500 billion this year: Pralhad Joshi

Union Minister Pralhad Joshi on Monday asserted that global solar investments will touch $500 billion this year from the $393 billion level in 2023 and said it is the most affordable energy source in many regions, surpassing coal and gas.

These investments are not only adding new capacity but also driving down the cost of energy from solar worldwide, Joshi, the minister of new and renewable energy, said addressing the inaugural session of 7th General Assembly of the International Solar Alliance (ISA).

Joshi, who is also President of ISA, said, "This rapid growth is fuelled by record-breaking investments. Global solar investments have grown from $144 billion in 2018 to $393 billion in 2023 and are expected to reach $500 billion by the end of 2024."

Today, he stated, solar power has become the most affordable source of electricity in many regions, surpassing coal and gas. He also informed that ISA is guided by the 'Towards 1000' strategy which aims to mobilise $1,000 billion of investments in solar energy solutions by 2030.

"This is our strategy: to deliver energy access to 1,000 million people; installation of 1,000 GW of solar energy capacity; and mitigate emissions to the tune of 1,000 MT of carbon dioxide every year," he added.

He stated that under Prime Minister Narendra Modi's leadership, India has set ambitious renewable energy targets, and achieved remarkable milestones. Last month, he informed, India reached an impressive 90 GW of installed solar capacity, moving steadily forward towards its broader goal of 500 GW of renewable energy capacity by 2030.

India is also setting its sights on new horizons, with a target to produce 5 million metric tonnes of green hydrogen by 2030, supported by 125 GW of renewable energy capacity, he added.

"We have approved 50 solar parks with a total capacity of nearly 37.5 GW and identified potential offshore wind energy sites to reach our 30 GW goal by 2030," he said.

India's Union Budget for 2024-25 reflects this commitment, with a 110 per cent increase in funding for solar power projects and targeted support for initiatives like the PM-Surya Ghar Muft Bijli Yojana, he stated.

This, along with exemptions on critical mineral imports, underscores our resolve to lead in solar innovation, he stressed. India has one of the best schemes globally for solar rooftop installation.

The country will empower communities to generate their own renewable energy, he opined. As a coalition of 120 member and signatory countries, ISA has been at the forefront of mobilising resources and facilitating the deployment of solar projects worldwide, particularly in least-developed countries and small island developing states, he noted.

Further, he said ISA has completed 21 out of 27 demonstration projects, showcasing India's collective ability to make significant strides in solar energy deployment and support sustainable development across the globe.

He lauded ISA and dedicated 11 demonstration projects to the world and the 7 STAR C centres launched on Monday. These will help us expand the strong network of institutional capacities within ISA member states.

In 2024, the solar data portal was launched, which delivers real-time data on solar resources, project performance and investment opportunities across countries. It is providing transparent and actionable insights, thereby transforming how governments, investors and developers engage with solar projects, he noted.

Another flagship initiative of ISA is the establishment of the Global Solar Facility. This facility aims to unlock commercial capital for solar projects in underserved regions, especially Africa.

With a pilot project already underway in the Democratic Republic of Congo, and commitments of USD 39 million from India, ISA, Bloomberg and CIFF, India is on track to operationalise this initiative by COP29, he said.

"Our monthly ISA Knowledge Series and the Green Hydrogen Innovation Centre, launched at the G20 Ministerial, are advancing solar energy research and development," he informed.

At the upcoming COP29, India will host a pavilion called the Solar Hub where it will be organising numerous high-level sessions to encourage global participation, he added.