Karachi: According to press reports, the State Bank of Pakistan (SBP) launched a ‘Refinance Scheme for Renewable Energy’ for renewable energy solution providers on Monday (October 11). According to the bank’s press statement, the apex bank has requested Renewable Energy Investment Entities (RE-IEs) to provide funding for renewable-energy projects on flexible terms.
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In 2019, the first financial plan was formed to encourage green energy solutions, and 717 companies with a total installed capacity of 1,082MW received PKR 53 billion in soft loans. The previous method, which was created in collaboration with the Alternative Energy Development Board (AEDB), divided 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
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Business REs in Categories I and II received the most funding under the 2019 plan, however commercial REs in Category III faced significant challenges. The new revised funding structure, on the other hand, is expected to benefit Category III firms.
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