SBP eases conditions for renewable energy solution providers

The State Bank of Pakistan (SBP) on Monday eased the conditions for renewable energy solution providers under its Refinance Scheme for Renewable Energy in a bid to promote investment in renewable energy solutions.

Renewable Energy Investment Entities (RE-IEs) interested in installing renewable energy projects are now allowed to avail refinance under category-III of the scheme.

It may be mentioned here that under Category III, financing is allowed to vendors, suppliers, energy sale companies for installation of wind and solar systems of up to 5 MW.

The scheme comprises of three categories and although there has been substantial take up under Category I & II, solution suppliers under Category-III reported facing problems. Therefore, in light of the feedback received from stakeholders including renewable energy solution suppliers, Alternate Energy Development Board, NEPRA and banks, the requirement of AEDB certification has been relaxed for RE-IEs who do not undertake installations on their own but hire services of installers/vendors for installation of RE projects.

However, vendors, suppliers, and engineering procurement & construction (EPC) contractors of these RE-IE will still be required to be certified under AEDB certification regulations. It is expected that the revision in category-III will further facilitate in production of clean energy.