Under the Viability Gap Funding (VGF), International Solar Alliance provides 10 percent of the project cost to the member nation for an identified renewable energy project
The International Solar Alliance (ISA) is contemplating increasing the viability gap funding for renewable projects to 35 percent, announced its president, R. K. Singh, on Tuesday.
Under the Viability Gap Funding (VGF) programme, ISA currently provides 10 percent of the project cost to member nations for identified renewable energy projects.
During the Sixth Session of the International Solar Alliance Assembly, Singh, who is also the Minister for New and Renewable Energy, explained that ISA has a VGF programme in place, making funding accessible for projects in developing countries.
"In today's meeting, attended by ministers from member countries, we collectively decided to raise the viability gap funding from 10 percent to 35 percent," he stated.
This increase is expected to attract more investments in the solar industry, according to Singh.
The ISA president emphasised that approximately 733 million people worldwide lack access to electricity, and the ISA's mission is to ensure they gain access to renewable energy.
"We have a mission to provide access to these people through the use of renewable energy. Among renewable energy sources, solar holds the greatest potential, as it can be sustained for longer periods," he added.
The inaugural ceremony of the sixth ISA Assembly brought together ministers from 20 countries, as well as delegates from 116 member and signatory countries and 18 prospective nations.