What is World Solar Bank to be launched by International Solar Alliance (ISA)?

Why in the news?

The International Solar Alliance (ISA) would be launching the World Solar Bank at COP 26, United Nations Climate Change Conference to be held in Glasgow in November 2021. 

Importance of World Solar Bank for India:

1. This would help India's attempt of acting as a global climate action leader and develop itself as a Green Economy. 
2. Also ISA is the first ever treaty based international government organization that is headquartered in India. It is situated in Gurugram.

About International Solar Alliance (ISA):

1. It is an alliance of 121 countries.
2. It aims to work for efficient energy consumption of solar energy and reduce the dependence on fossil fuels. 
3. It has its credit partners as European Investment Bank and Asian Development Bank. 
4. India falls in the solar rich belt 
5. ISA is the nodal implementing agency for India's global electricity grid plan called the One Sun One World One Grid (OSOWOG).
6. This agency seeks to transfer the solar power generated in one region to feed the demand of electricity in other parts of the world as well. 
7. Some of the regions of the world like the Thar and Sahara desert with sparse populations get much of the world's solar radiation due to their location. This energy can be transferred to densely populated parts of the world through grids made on a global level.

COP 26: Proposals to be set forth

At the COP 26, ISA would set forth the following proposals:

1. It would launch the Green Grid Initiative which is a joint effort of the ISA and Climate Parliament to encourage the member countries to emulate India's GEC and integrate them with OSOWOG. 
2. It would introduce the Sun Charter 
3. It would also introduce the World Solar Bank

Organizations involved with OSOWOG

1. AETS France
2. French Government's power utility firm EDF
3. Energy and Resources Institute (TERI) India

What is World Solar Bank

1. The world solar bank is a proposed financial agency that would pool resources from around the world and use them to finance the solar power projects in the member countries of ISA. 
2. The proposed capital size of the World Solar Bank is expected to be around 10 billion dollars.
3. There is a clause that the host country of the bank would need to finance 30% of the proposed capital. 
4. Significance of the World Solar Bank
5. The world is progressing towards a terrible climate change and industrialization has affected the environment to a great level. Now the world needs to cut down the fossil fuel burning and shift to green energy resources. 
6. Financing green projects would be a step towards climate change mitigation and would be  a priority at the 26th Conference of Parties at Glasgow. 

Some Facts:

1. COP 26 is important as the USA has officially joined the Paris Agreement again. 
2. Moreover, ISA was proposed by India at COP21 when this Paris Accord came up. 
3. In this Agreement in Paris, India set a target of achieving 40% of its total electricity generation from non fossil fuel sources by 2030.
4. It was till September 2020, that India had installed a solar capacity of 36 GW.India has 38 GW of installed wind energy. 

National Solar Mission of India:

The Jawaharlal Nehru National Solar Mission 2019 is a part of India's National Action Plan on Climate Change(NAPCC). Its target is generating 100 GW installed capacity of solar energy by 2022.

It also aims to produce Generation Based Incentives for small grid solar projects below 33KW. These are trying to bridge the gap between base tariff of INR 5.5 and the tariff is put in place by CERC as a fiscal incentive. 

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