Lighting up 600 million lives

Over 600 million Africans are currently living without access to electricity, facing challenges that hinder their ability to progress and thrive. Recognizing this pressing issue, the International Solar Alliance (ISA) has taken the initiative to launch various projects and campaigns aimed at empowering start-ups with solar-powered innovations to meet the energy needs of underserved rural communities. In an exclusive interview with CNBC Africa's Murungi Sarah, Dr. Ajay Mathur, Director General at ISA, shed light on the organization's strategies to bridge the gap and bring sustainable energy solutions to the continent. Dr. Mathur emphasized the importance of building business models that allow companies to establish solar mini-grids in rural areas, enabling them to sell electricity to local residents. By partnering with financial institutions, ISA aims to facilitate access to loans for smaller projects, ensuring that rural farmers have continuous access to affordable electricity. Despite the significant global investment in solar energy, only a mere 3% of the funds were allocated to Africa last year, with the majority directed towards large-scale projects rather than smaller, community-based initiatives. Dr. Mathur stressed the need to address this disparity in funding distribution to ensure that all Africans have access to reliable and affordable electricity. ISA has implemented a risk facility to boost investor confidence in supporting smaller solar projects in Africa, offering a payment guarantee mechanism to mitigate perceived risks and encourage investments in sustainable energy solutions. To support the expansion of solar projects across the continent, ISA is focusing on capacity development by providing training and certification programs for individuals involved in the development and management of solar plants. By equipping stakeholders with the necessary skills and knowledge, ISA aims to facilitate the widespread adoption of solar energy in Africa. Collaboration with governments is crucial for the success of ISA's initiatives, with 38 African countries already members of the alliance. Working closely with political leaders, ISA showcases the transformative benefits of solar technologies, including job creation and reduced energy imports, to drive policy changes and promote large-scale adoption of solar energy solutions. Ethiopia stands out as a success story, having implemented regulatory reforms to support both large-scale solar farms and solar mini-grids. The iterative process of demonstrating the benefits of solar energy through projects and subsequent regulatory adjustments is a key strategy employed by ISA to drive sustainable energy development in African nations. Dr. Mathur outlined three essential policy changes necessary to accelerate the adoption of solar energy in Africa: enabling private sector investments in generation, guaranteeing the purchase of electricity produced, and ensuring timely payments on power purchase agreements. By advocating for these policy reforms, ISA aims to create an enabling environment for private sector participation in the renewable energy sector, ultimately improving energy access and quality of life for millions of Africans.