The Common Risk Mitigation Mechanism under the International Solar Alliance is on track and will be formally announced at the 24th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 24) to be held in Poland in December.
“The Common Risk Mitigation Mechanism (CRMM) under the International Solar Alliance (ISA) has been taken over by the World Bank and it has mobilized $1 million for preparatory work. The CRMM will be announced formally at the COP24,” Minister of State (Independent Charge), Power and New and Renewable Energy, RK Singh, told BusinessLine.
The objective of CRMM is de-risking and reducing the financial cost of solar projects in ISA-member countries. CRMM will act as a pooled insurance with limited liability. Banks and multi-lateral institutions can contribute to the fund for a marginal premium. This will lower the cost of capital for developing renewable energy projects. Singh said India is taking a lead role for setting up the ISA and its institutions. He said, “Indian corporates have already given $7 million to the CRMM. Coal India, Power Finance Corporation and ITPO (India Trade Promotion Organisation) will contribute another $1 million each to the CRMM.”
Elaborating India’s role, Singh said, “The first Assembly of the ISA will be held in Delhi-NCR from October 2-5. The ISA has been founded and will be headquartered in India.”
Projects in Africa
Singh also said India will seek to extend its footprint in the African nations looking at deploying solar power generation projects. “There are numerous African nations that want to partner with India for their solar programmes. The off-grid solutions we can offer are ideal for countries separated by large distances.”
In addition to the first ISA Assembly, the Ministry of New and Renewable Energy is simultaneously organizing the second Indian Ocean Rim Association (IORA) Renewable Energy Ministerial Meeting and the 2nd Global Renewable Energy Investment Meeting and Expo(REINVEST- 2018).