521 solar projects worth Rs36bn have been launched under SBP’s schemes

According to Governor State Bank of Pakistan (SBP) Dr. Reza Baqir during a webinar, various commercial banks have extended financing of around Rs 36 billion for 521 projects producing approximately 850 MW electricity under Financing Scheme for Renewable Energy.

As reported by The News, Dr. Baqir stated that Pakistan faces challenges as a result of climate change and adopting prevention strategies are of paramount importance. In this regard, he pointed out that the SBP has issued Financing Scheme for Renewable Energy with a view to promote renewable energy projects.

He went on to add that mobilization of financial resources towards resource-efficient and sustainable avenues would play a central role in mitigating climate change. Pakistan is a member of the Global Sustainable Banking Network (SBN) since 2015 and green/sustainable finance policies are being aligned with global environmental and social standards and best practices.

SBP’s Renewable Energy Financing scheme is an innovative solution that aims to encourage investments in clean energy in Pakistan. This is part of the country’s efforts to diversify the energy mix and reduce climate change impact. The scheme offers varied financing options ranging from Rs 400 million to Rs 6 billion for a range of entities and persons.

This includes captive energy units as well as commercial projects and individual consumers who may share excess production with the national grid. The SBP issued its Financing Scheme for Renewable Energy in 2016 and based on positive feedback the scheme was revised in July 2019.

SBP also introduced a Shariah-compliant version of this Scheme in August 2019.

The webinar was attended by various chambers, media organizations, Presidents and CEOs of banks, energy experts, representatives of the Pakistan Business Council, and senior officials from SBP.