'Maximum renewable energy investments diverted to developing nations': Expert

Ajay Mathur, Director General of the International Solar Alliance, highlighted that while a significant amount of investment is flowing into the renewable energy sector, most of it is concentrated in developing countries, leaving the rest of the world with limited funding. During the G20 fourth Energy Transitions Working Group meeting, Mathur emphasised the potential for achieving net-zero emissions but also addressed the challenges faced by the solar energy sector.

Prioritising developing countries over the underdeveloped 

Mathur stated, "We see a huge amount of investment occurring in renewable energy in general and solar in particular. In 2022, the investment in renewable energy reached approximately 500 billion dollars, with half of it in solar." However, he pointed out that a vast proportion of this investment was directed towards countries like China and other large emerging developing nations, while other regions, such as Africa, received less than 5 per cent of the funds.

The distribution of investment is "extremely differentiated, it is not universal," Mathur added. He expressed concern that much of the solar energy was being implemented on a large scale, in the form of solar farms, and not in smaller applications that would directly benefit common people. Additionally, the heavy concentration of production capacity in a single country poses a challenge, and he suggested reducing supply chain constraints through geographical diversification.

Hope against challenges

Despite these challenges, Mathur believes that renewable energy can lead the world towards achieving net-zero emission goals. He expressed optimism about the cost-effectiveness of renewables as an electricity solution, particularly solar, and looks forward to further reductions in battery prices, making solar plus battery systems the preferred electricity source in the next 2-3 years.

Damilola Ogunbiyi, special representative of the US Secretary General, commended India's emphasis on renewable energy, particularly for developing countries in Africa. The UN Secretary-General is fully committed to promoting renewable energy in developing nations, with the aim of achieving net-zero emissions by 2050. Ogunbiyi emphasised the importance of strong policies and implementation capacity for successful renewable energy initiatives. She also stressed the significance of being investment-ready, having access to accurate data for effective solar energy implementation in developing countries.

(With PTI inputs)