https://sputniknews.in/20231019/payment-security-mechanisms-give-confidence-to-investors-in-solar-energy-sector-minister-4952427.html
Payment Security Mechanisms Give Confidence to Investors in Solar Energy Sector: Minister
Payment Security Mechanisms Give Confidence to Investors in Solar Energy Sector: Minister
Sputnik India
Ahead of the Sixth Assembly of the International Solar Alliance, a federal minister briefed the media about the importance of payment security mechanisms for... 19.10.2023, Sputnik India
2023-10-19T21:30+0530
2023-10-19T21:30+0530
2023-10-19T21:30+0530
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India’s minister for power, new and renewable energy, R.K. Singh, emphasised de-risking investments in order to accelerate the solar energy sector not only in the country, but across the world.The statement by Singh, who is also the president of the International Solar Alliance (ISA), came during the curtain raiser of the sixth assembly, an annual gathering and the ISA's top decision-making body, in India's capital city.The ISA's sixth assembly will be held in New Delhi from 30 October to 2 November, where focus will be on energy access through solar mini-grids, mobilising finance for solar deployment, and diversifying the solar supply chain and manufacturing.The assembly as of now counts 90 of its 109 signatories as full members, and India will be presiding over it with France as co-president.As part of the assembly, the ISA Secretariat will be hosting a conference on 1 November to analyse new technologies for clean energy transition, while three flagship reports about the solar technology trend, market dynamics, and investment trajectories will also be released.De-Risking Investment to Boost Solar Energy SectorOn the sidelines of the curtain raiser of the assembly, the minister, while responding to a question from Sputnik India about a roadmap to mobilise finance in the solar energy sector, said that two years ago, the idea for setting up multilateral development banks for solar was floated, and progress is being made in the direction to bring in investments.He, however, highlighted that expropriation and risk for payment are the biggest challenges in getting investment in the sector.He further said that India will be contributing to the fund and that he expects other countries will also contribute.India Emerged as Major Force in Green HydrogenApart from this, Singh also responded to another question of Sputnik India about the G20 Declaration where onus was put on the ISA to build a Green Hydrogen Innovation Centre.Highlighting that India has emerged as a major force in green hydrogen, he said that the centre is being set up.Adding to this, he said that it is also important to understand where one stands as far as green hydrogen is concerned, because humankind needs an assurance.“So, we are adding to it and setting up manufacturing capacities for electrolysers in the country and have also production linked incentive for that so that anybody comes in to set up manufacturing capacity we will give them incentive for units sold. We also believe that other countries are also expanding their manufacturing capacity”, the ISA president said.Clean Hydrogen is Alternate RouteMeanwhile, Singh also talked about an alternate route, which is clean hydrogen. He said: “Clean hydrogen which is made from natural gas by taking out carbon dioxide is another route. However, the downside is that for every kilogram of clean hydrogen 11 kg of carbon dioxide is released and for which mechanisms to capture it and use it somewhere else”.Adding to the minister’s remark, ISA Director General Ajay Mathur told Sputnik India that the centre has already been set up and all the information is available on a website.“Apart from this, there is one thing which is not yet in place but is being put in place. It is matchmaking between green hydrogen developers and funders. Hopefully by the end of next month, before COP, we will get that working as well”, Mathur added.
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minister for power, new and renewable energy, r.k. singh, solar energy, solar energy sector, investment in solar energy, risk in investment in solar energy, international solar alliance, ajay mathur, isa director general, sixth assembly of isa, new technologies for clean energy transition, solar technology trend, mobilise finance in the solar energy sector, multilateral development banks for solar, payment security mechanism for solar, solar energy corporation of india, g20 declaration, green hydrogen innovation centre, electrolyser manufacturing capacity in india, clean hydrogen, ccus, carbon capture, usage and storage
minister for power, new and renewable energy, r.k. singh, solar energy, solar energy sector, investment in solar energy, risk in investment in solar energy, international solar alliance, ajay mathur, isa director general, sixth assembly of isa, new technologies for clean energy transition, solar technology trend, mobilise finance in the solar energy sector, multilateral development banks for solar, payment security mechanism for solar, solar energy corporation of india, g20 declaration, green hydrogen innovation centre, electrolyser manufacturing capacity in india, clean hydrogen, ccus, carbon capture, usage and storage
Payment Security Mechanisms Give Confidence to Investors in Solar Energy Sector: Minister
Exclusive
Ahead of the Sixth Assembly of the International Solar Alliance, a federal minister briefed the media about the importance of payment security mechanisms for the solar energy sector.
India’s minister for power, new and renewable energy, R.K. Singh, emphasised de-risking investments in order to accelerate the solar energy sector not only in the country, but across the world.
The statement by Singh, who is also the president of the International Solar Alliance (ISA), came during the curtain raiser of the sixth assembly, an annual gathering and the ISA's top decision-making body, in India's capital city.
The ISA's sixth assembly will be held in New Delhi from 30 October to 2 November, where focus will be on energy access through solar mini-grids, mobilising finance for solar deployment, and diversifying the solar supply chain and manufacturing.
The assembly as of now counts 90 of its 109 signatories as full members, and India will be presiding over it with France as co-president.
As part of the assembly, the ISA Secretariat will be hosting a conference on 1 November to analyse new technologies for clean energy transition, while three flagship reports about the solar technology trend, market dynamics, and investment trajectories will also be released.
De-Risking Investment to Boost Solar Energy Sector
On the sidelines of the curtain raiser of the assembly, the minister, while responding to a question from
Sputnik India about a roadmap to
mobilise finance in the solar energy sector, said that two years ago, the idea for setting up multilateral development banks for solar was floated, and progress is being made in the direction to bring in investments.
He, however, highlighted that expropriation and risk for payment are the biggest challenges in getting investment in the sector.
“Now, these risks need to be covered and there are two instruments for it one is insurance and other is payment security mechanisms. So we decided to put these in place. Therefore, we have set up a group of experts who gave us recommendations about the structure of funds and we have decided to operationalise it”, he stated.
He further said that India will be contributing to the fund and that he expects other countries will also contribute.
“We have similar payment security mechanism for solar in India for Solar Energy Corporation of India (SECI). Although, the outgo from the fund will be limited but anybody who sets up the project and wants coverage from that insurance will have to contribute”, Singh said.
India Emerged as Major Force in Green Hydrogen
Apart from this, Singh also responded to another question of Sputnik India about the G20 Declaration where onus was put on the ISA to build a Green Hydrogen Innovation Centre.
Highlighting that
India has emerged as a major force in green hydrogen, he said that the centre is being set up.
“We already have around 5.8 million tons of green hydrogen capacities being set up in different corners. We have huge renewable energy capacity and we are adding to it. We also have set up renewable energy capacity at the least cost in the world around $600,000 per megawatt. So, the ecosystem which we have makes manufacturing of green hydrogen cheaper”, the minister added.
Adding to this, he said that it is also important to understand where one stands as far as
green hydrogen is concerned, because humankind needs an assurance.
“As far as green hydrogen is concerned, there are two aspects. One is renewable energy for which ecosystem are in place while the other is electrolysers and the electrolyser manufacturing capacity is not only limited but very limited”, Singh stated.
“So, we are adding to it and setting up manufacturing capacities for electrolysers in the country and have also production linked incentive for that so that anybody comes in to set up manufacturing capacity we will give them incentive for units sold. We also believe that other countries are also expanding their manufacturing capacity”, the ISA president said.
Clean Hydrogen is Alternate Route
Meanwhile, Singh also talked about an alternate route, which is clean hydrogen. He said: “Clean hydrogen which is made from natural gas by taking out carbon dioxide is another route. However, the downside is that for every kilogram of clean hydrogen 11 kg of carbon dioxide is released and for which mechanisms to capture it and use it somewhere else”.
“So, with CCUS (Carbon capture, usage and storage) clean hydrogen is possible. Now, CCUS has been tried and we have had successful pilots around the world as well as in India. So, clean hydrogen can be produced through CCUS provided you sequester carbon dioxide so that it doesn’t leaks. So, that is an assurance that the planet will need. However, the preference is for green hydrogen”, Singh said.
Adding to the minister’s remark, ISA Director General Ajay Mathur told Sputnik India that the centre has already been set up and all the information is available on a website.
He further stated: “The crucial part is training because ultimately you need people who can set up. So certified training is something that is being offered at the centre. We have had one such training at the African Green Hydrogen Association meeting and we are having a second one on 17 November”.
“Apart from this, there is one thing which is not yet in place but is being put in place. It is matchmaking between green hydrogen developers and funders. Hopefully by the end of next month, before COP, we will get that working as well”, Mathur added.
