Union Minister Stresses Importance of Insurance, Payment Security and Financing for Renewable Energy Investments


Indian Union Minister for Power and New & Renewable Energy, R. K. Singh, held a meeting with Chrysoula Zacharopoulou, Minister of State for Development, Francophonie and International Partnerships from France, at Shram Shakti Bhawan in New Delhi on June 13, 2023. The meeting also included Emmanuel Lenain, Ambassador of France to India, Guillaume Pottier, Political Advisor to the Minister of State, and Pablo Ahumada, Political Counsellor at the Embassy of France in India.


One of the main topics of discussion was the collaboration between India and France to accelerate the global energy transition, particularly through solar energy initiatives under the International Solar Alliance (ISA). India serves as the President of the ISA, while France is the Co-President.

Minister Singh highlighted the importance of the ISA in implementing solar energy projects, especially in Africa. He emphasized the need to assist economically weaker countries in accessing green funds for renewable energy development. With nearly half of the African continent lacking access to electricity, the focus should not only be on energy transition but also on ensuring energy access. Solar energy was identified as the most affordable and straightforward solution for African countries to achieve energy access and decarbonization.

Also Read  BayWa r.e. Appoints Daniel Gaefke to Group Management Board Amid Ambitious Plans for Wind and Solar Project Expansion

Minister Singh proposed the establishment of three funds: insurance for renewable energy projects, payment security mechanisms, and debt financing. These funds would help mitigate risks associated with renewable energy investments and attract greater investments in grid-scale solar energy projects, particularly in Africa. The minister cited India’s own success in attracting investment through a payment security mechanism fund.

The discussion also highlighted Kenya’s achievements in renewable energy, and the possibility of holding an ISA conference in Kenya was explored.

Minister Singh informed the French delegation that although India’s per capita emissions are one-third of the global average, the country is leading the energy transition efforts. India aims to reduce its emission intensity by 45% by 2030 and is on track to become a world leader in green hydrogen. The country is rapidly expanding its renewable energy capacity, which will contribute to reducing the overall cost of energy.

Overall, the meeting emphasized the need for collaboration between India and France to support solar energy projects, especially in Africa, and the importance of establishing funds to facilitate renewable energy investments, ensure payment security, and de-risk projects. India’s commitment to energy transition and its efforts to increase renewable energy capacity were also highlighted.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.