French delegation discuss strategies with MNRE to accelerate the energy transition

The discussion highlighted the need for payment security mechanisms, debt financing, and insurance for renewable energy projects in luring investors to the sector.

R. K. Singh, Union Minister for Power and New & Renewable Energy, met with Chrysoula Zacharopoulou, Minister of State for Development, Francophonie, and International Partnerships, attached to the Minister for Europe and Foreign Affairs, at Shram Shakti Bhawan in New Delhi, on June 13, 2023. The Minister of state had come to see the Union Minister, accompanied by Emmanuel Lenain, Ambassador of France to India; Guillaume Pottier, Political Advisor to the Minister of State; and Pablo Ahumada, Political Counsellor, Embassy of France in India.

Collaboration to accelerate the global energy transition powered by solar energy was a prominent topic of discussion, particularly within the institutional framework of the International Solar Alliance, of which India is the President and France is a Co-President.

“We need to help countries who need green funds”

The International Solar Alliance must take on additional solar energy projects, particularly in Africa, according to India’s Union Minister for Power and New & Renewable Energy. “The economically powerful nations will find the funding for renewable energy on their own, but the economically underdeveloped nations would require green funds. We will have to assist such nations that require financial aid.

Nearly 50 percent of Africa’s landmass lacks access to power, the two parties agreed. The Union Power and New & Renewable Energy Minister of India spoke of the necessity of aiding the ISA in moving forward in this direction, noting that in addition to energy transformation, the focus must also be on ensuring energy access. As a result of the continent’s current low levels of electricity availability, the two parties also noted that decarbonisation is not an issue for Africa. According to the Minister, in this situation, gaining access to electricity through solar energy is the most affordable and straightforward choice.

Need Green Energy Insurance, Payment Security Mechanism and Debt Financing

Three funds have been highlighted by the minister as being necessary: procedures for loan financing, payment security mechanisms, and insurance for renewable energy projects. “Once established, these funds will grow, due to contributions and interest payments; in India, too, our investment is coming because of a fund we set up as a payment security mechanism,” the Minister stated.  

To support grid-scale solar energy projects on the African continent, it was suggested by R. K. Singh that the ISA establish a de-risking mechanism and increase its use of green funds. The success Kenya has had with renewable energy was also noted by the two parties, and they talked about the possibility of an ISA conference being held in Kenya. Despite India’s per capita emissions representing only one-third of the world average, we are consistently moving towards energy transformation. Although today, 43 percent of our energy is generated from non-fossil fuels, we are committed to cutting our emission intensity by 45 percent by 2030. Concluding the discussion, the minister emphasised that India would soon be a global leader in the production of green hydrogen and that the nation is rapidly expanding its capacity for the production of renewable energy, both of which will eventually assist to lower energy prices.