State Bank of Pakistan (SBP) has extended the financing scheme for renewable energy through conventional and Islamic financing facility for the period of two years i.e. up to June 30, 2024.

The banking regulator introduced this scheme in 2016 for the first time which had already been extended twice since then.

The scheme provides concessionary financing for large renewable energy power projects as well as small-scale renewable energy solutions. The scheme also facilitates installation of renewable energy based solutions/projects under net metering system introduced by National Electric Power Regulatory Authority (NEPRA).

The banking regulator introduced this scheme in 2016 for the first time which had already been extended twice since then.

The scheme provides concessionary financing for large renewable energy power projects as well as small-scale renewable energy solutions. The scheme also facilitates installation of renewable energy based solutions/projects under net metering system introduced by National Electric Power Regulatory Authority (NEPRA).

The refinance under this scheme shall be up-to 100% of total financing (debt) of an eligible RE project of upto 20 MW and up-to 50% of financing (debt) of an eligible RE Project of more than 20 MW, subject to adherence of other rules & regulations. However, maximum refinance allowed under the scheme cannot be more than Rs. 6 billion for a single renewable energy project.

The financing scheme is based on three categories depending on the two major factors including the value of financing which is maximum 12 years with 2 years additional grace period, and the value of financing which is maximum up to Rs. 1 billion.

Source: Pro Pakistan