State Bank of Pakistan has enhanced the scope of financing facility for establishment of new power projects using renewable energy with a view to promoting the use of renewable energy and meeting the growing electricity demand of the country.
It has now been decided that banks and DFIs can also consider financing requests of the sponsors for setting up power projects up-to a maximum capacity of 20MW in cases where only biomass is used as renewable energy source, keeping in view the terms and conditions of the scheme for financing power plants using renewable energy, said a State Bank of Pakistan circular issued on Wednesday.
It may be recalled that earlier under the scheme, which was announced by the central bank vide SMEFD Circular No 19 on December 01, 2009, the financing facility was allowed for establishment of new power projects using renewable energy with a capacity of up-to 10 megawatts.
