Finance exists but is not moving to the right projects: Ashish Khanna of ISA

International Solar Alliance (ISA) is seeking to unlock greater investment from pension funds and sovereign wealth funds into renewable energy and is working on a state-level infrastructure investment trust platform in India that could later be replicated across other middle-income countries.
19/06/2026
Episode 2 | Ashish Khanna, Director General, International Solar Alliance

The International Solar Alliance (ISA) is a treaty-based intergovernmental organisation launched by India and France in 2015 to accelerate the global adoption of solar energy. Headquartered in India, it works with member countries to mobilise finance, build capacity, support policy development and promote solar deployment.

Its role is set to become bigger, given the current global energy crisis. Talking about the impact of the conflict in West Asia on the solar sector, the alliance director general, Ashish Khanna, says the world will actually do at least 50% more solar. He notes that India itself has a target of 500 gigawatts of renewable energy and the government is considering whether it should increase or even triple its target to 1,500 gigawatts because India has a huge dependence on both LPG and fossil fuels.

He adds that ISA recently helped the Delhi government on its EV policy and believes it should be expanded not only across Delhi but almost across the entire country. Khanna says that increasing EV penetration will require a lot more electricityand that solar, along with storage and transmission, is the cheapest source in India, as in many other countries, to meet that demand.

Addressing the issue of clean-tech investments flowing disproportionately away from the Global South, Khanna says this is a core part of ISA’s work. He points out that while $2.2 trillion came into clean tech last year, less than 2% went to Africa, which has 60% of the world’s solar radiation resources. He adds that in countries such as India, Vietnam and Indonesia, less than 0.5% of $14 trillion held by pension funds and sovereign wealth funds is invested in renewable energy.

Khanna says ISA would like to create a stronger case for significantly greater investment by pension funds and sovereign wealth funds in renewable energy and transmission assets. He notes that ISA is working on an infrastructure investment trust platform in India at the state level, which can eventually be replicated in other middle-income countries.

He explains that the finance exists but is not moving to the right projects. According to Khanna, another reason financing does not happen is capability. He says many low-income countries unfortunately do not have the capability to prepare strong bidding documents, even though they are spending considerable resources.

Khanna says ISA has established what it calls Solar Technology Application Resource Centres, or centres of excellence, in 12 countries, with five more about to be openedunder the STAR-C framework. He says these centres are important for testing and measurement, building capability, supporting procurement and nurturing start-ups. Khanna says ISA is now connecting these centres to a global capability centre based in India, which will act as a hub and provide digital and AI services across the network.

He says that a combination of addressing financing and capacity is essential to ensure more finance reaches developing countries. Khanna adds that local-currency financing is another important element.

Referring to India’s solar journey, Khanna says the country has achieved 150 gigawatts of solar capacity, a significant achievement. He notes that India was the second-largest solar market in the world last year and that almost all of this deployment is financed in local currency. He points out that this is not the case in Africa and small island states.

Khanna says ISA is also exploring what it will take to secure local-currency financing for large-scale adoption. He notes that solar is evolving and faces challenges, but says the question is no longer about how much solar is being deployed. Instead, he argues that the focus should be on creating an integrated and flexible system with four elements: solar, storage, transmission and digitisation.

On whether green hydrogen relies too heavily on solar energy, Khanna says electricity accounts for roughly two-thirds of the cost of green hydrogen. He notes that solar power in India is available at around Rs 2.5 to Rs 3.5 per unit, including storage, making it much cheaper than green hydrogen produced using other energy sources.

He says that in India’s case, solar will probably continue to be one of the main sources for hydrogen and therefore green hydrogen. However, he adds that countries with abundant gas supplies may consider other energy sources.

Discussing the next major breakthrough in the sector, Khanna says it has to come from all areas, perhaps in different sequences. He highlights digitisation and system architecture, saying that the key issues are system demand and system flexibility.

He says that because solar is intermittent and affected by weather patterns, there is a need to create systems that can manage this intermittency through storage and digitisation. According to Khanna, these are among the most important and essential areas for innovation.

On transmission, Khanna says the world already knows what needs to be done. He argues that better transmission planning and stronger coordination with the pace of solar project development are required. He adds that transmission infrastructure needs to be planned according to where solar generation is located and where consumption takes place.

Turning to storage and materials innovation, Khanna says there are two kinds of innovation that matter. The first is the application of existing technology. He says that after observing many countries, he believes one of the most transformative uses of technology is PM-KUSUM, under which farmers receive electricity at one-third of the cost and get power during the day rather than at night.

Khanna adds that perovskite technology and new storage technologies, including different kinds of batteries for short-, medium- and long-duration storage, will further enhance adoption. He notes that storage is critical for reducing costs and that perovskite cells may achieve efficiencies of 40–45%, compared with only 25–26% for silicon cells.

Asked how ISA manages the diverse needs and constraints of its member countries, Khanna says this is one of the organisation’s pressing challenges because every country is unique. He says ISA seeks both to help individual countries and to bring them together.

He explains that ISA views the issue through three buckets. The first concerns challenges that require collective action. Khanna cites solar PV and battery waste management as an example, noting that countries of all sizes are asking how to address the issue.

Khanna says ISA has launched a new programme called Sunrise, focused on solar recycling of battery and PV waste, because countries need to come together to establish harmonised standards and develop appropriate business models.

He says some solutions require regional approaches. As an example, Khanna notes that ISA has brought together five Pacific countries, four African and Asian island states, and nine Caribbean islands because they share similar needs and can learn from one another. He explains that these countries have joined a SIDS (Small Island Developing States) platform that promotes joint procurement. 

The third bucket, Khanna says, recognises that every country is unique. He explains that ISA works directly with countries to understand their policy frameworks, procurement systems and capacity-building needs. He says the organisation seeks to integrate these three approaches through common platforms.

On workforce development, Khanna says this is one of ISA’s most unique features because capacity is often the real binding constraint, even when financing appears to be the primary challenge.

He argues that countries with the right policymakers, regulators and procurement professionals will create good projects and attract funding. Khanna says ISA undertakes several initiatives to build capacity.

He adds that because almost everyone has a smartphone, ISA is launching an AI-based learning management system called ISA Academy, expected to become operational within four to five months. According to Khanna, the platform will allow people to access learning modules in their own languages and become experts in rooftop solar, utility-scale solar and related fields.

Looking ahead to the next five to ten years, Khanna says success will mean helping countries achieve their ambitions to double or triple solar capacity while ensuring ISA becomes an effective implementation partner.

He stresses that ISA’s strategy and vision have moved from advocacy to ambition and implementation. Khanna says there is growing demand for ISA to serve as an integrator of platforms that support implementation.

He says ISA would like to see significantly more investment flowing to Africa and SIDS, as well as greater job creation through solar-powered agriculture. Khanna adds that if India progresses from a 500-gigawatt target towards 1,500 gigawatts, it will establish itself as the epicentre of clean technology globally.

He concludes that through this progress, India and ISA will help serve the rest of humanity by meeting global energy needs.