SBP issue new renewable energy financing scheme
Karachi: The State Bank of Pakistan (SBP) on Monday (October 11) introduced ‘Refinance Scheme for Renewable Energy’ for solution providers concerning renewable energy, news sources reported. As per the details released by the bank, the apex bank has asked the Renewable Energy Investment Entities (RE-IEs) to avail financing on easy conditions for renewable-energy projects. Read: WB to lend funds to support Pakistan’s conversion to renewable energy The initial funding plan was established in 2019 to support green energy solutions, and 717 firms with an installed capacity of 1,082MW were provided with PKR 53 billion in soft loans. The former approach, developed in conjunction with the Alternate Energy Development Board (AEDB), classified RE-financing into three categories: Category I includes entities with installed capacities ranging from 1 to 50 MW (for personal use) Category II comprises entities with a commercial installed capacity of 1 MW Category III includes entities with a combined installed capacity of 5 MW from wind and solar systems Read: Pakistan to produce one-third of its electricity from renewable sources by 2030 Under the 2019 plan, commercial REs in Categories I and II availed the highest funding, whereas commercial REs in Category III had considerable difficulties. However, it is envisaged that Category III entities would profit from the new amended funding structure.