The State Bank of Pakistan (SBP) has upgraded the financing limit of Renewable Energy Refinance Scheme by 100 percent from Rs 1 billion to Rs 2 billion focused on further advancing and expanding the utilization of sustainable power source.
The SBP Financing
Scheme for Renewable Energy was announced in June 2016 with a goal to help
address the difficulties of energy shortages and environmental change in the country.
Since the presentation of the plan, absolute extraordinary financing under the
plan has flooded to Rs15.6 billion for 217 undertakings having the capability
of including 292 MW of energy supply.
SBP announced that the
feedback of stakeholders became the reason to increase the financing of the
scheme. According to the reconsidered scheme, the total
financing limit has additionally been expanded from Rs.1 billion to Rs.2
billion. While the size of the venture set up by vendor or energy sale
organization has been improved from 1 MW to 5 MW.
SBP has permitted
financing under category III of the scheme to solar-powered and wind-based energy
sale organizations built up explicitly to embrace solar-based and wind-based projects
to sell electricity to ultimate users. Such organizations won’t be required to
be affirmed under the Alternative Energy Development Board (AEDB) Certification
Regulations.
At first, the plan
contained two classifications. Class 1 permitted financing for setting up of renewableenergy
power projects with limit going from 1 MW to 50 MW for own utilization or
selling of power to the national grid or both.
Classification II
permitted financing to household, farming, business and industrial borrowers
for installation of renewable energy-based tasks of up-to 1 MW to create electricity
for own utilization or offering to the grid or organizations under net
metering.
Afterwards, in July
2019, SBP presented another Category III for encouraging financing to sellers
for installation of wind and solar systems of up to 1 MW. SBP additionally
propelled a Shariahcomplaint version of the scheme in August 2019.
Presently some new highlights have additionally
been included under Category III of the plans and the total financing cutoff of
a merchant, provider or vitality deal organization has been upgraded from Rs. 1
billion to Rs. 2 billion.