World Bank Group’s MIGA and International Solar Alliance Launch New Solar Facility to Expand Global Renewable Energy Access

The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, and the International Solar Alliance (ISA) have announced the establishment of the MIGA-ISA Solar Facility, a multi-donor trust fund aimed at accelerating global solar energy adoption. Catalyzed by the Indian government’s push to expand renewable energy access, the facility will combine ISA’s technical expertise with MIGA’s financing capabilities.

The facility will deploy concessional financing tools such as first-loss instruments and reinsurance capacity to lower the cost of MIGA’s guarantees, making solar projects more bankable. Both organizations will collaborate on launching new solar power and distributed energy projects in eligible developing countries, with an initial focus on Sub-Saharan Africa and plans for global expansion.

ISA’s involvement is part of a broader effort to support the World Bank Group and African Development Bank’s goal of providing electricity to 300 million people in Sub-Saharan Africa by 2030. MIGA will administer the facility, mobilizing private capital to scale solar and distributed energy projects. The facility aims to raise $10 million in funding, including an initial $2 million seed-fund from ISA, and is part of ISA’s Global Solar Facility (GSF), which seeks to raise $200 million for solar projects across Africa.

“MIGA is proud to host this facility and support efforts to bring clean, reliable electricity to Sub-Saharan Africa,” said Hiroshi Matano, MIGA Executive Vice President. “By offering risk mitigation and concessional financing, we aim to attract private investment and close the energy gap in underserved regions.”

The MIGA-ISA Solar Facility’s first project has already been implemented in the Democratic Republic of Congo, where MIGA guarantees and ISA financing are projected to reduce operating costs by 20%, leading to lower tariffs for consumers.

Ajay Mathur, ISA Director General, emphasized the facility’s potential impact: “This collaboration marks a significant milestone for ISA’s Global Solar Facility. We are committed to delivering clean energy solutions that will transform the lives of millions in Africa who are still off-grid.”

Currently, around 675 million people worldwide lack access to electricity, with projections indicating that 660 million people could remain without power by 2030 unless significant action is taken.