KARACHI: The State Bank of Pakistan (SBP) has extended the financing scheme for renewable energy (RE) to June 30, 2022.

The central bank on Friday said the financing scheme, which was launched in June 20, 2016 and expired at the end of FY19, had now been extended after consultation with the stakeholders.

The scope and features of the scheme have also been aligned with recommendations of the stakeholders. It is now available under three categories, said the SBP.

In the 1st category included prospective sponsors, desirous of setting up renewable energy power projects with a capacity ranging from more than 1 MW and up-to 50MW for their own use, selling of electricity to the national grid (including distribution companies) or combination of both.

In the 2nd category the prospective sponsors, desirous of installing renewable energy source based projects and solutions for generation of electricity up to 1MW.

And the 3rd category included vendors and suppliers certified under AEDB Certification Regulation 2018 for installation of wind and solar systems on lease basis or selling of electricity to ultimate owners or users.

The SBP refinance will be up to 100 per cent of total financing (debt) of an eligible RE project of up to 20MW and up to 50pc of financing (debt) of an eligible RE project of more than 20MW.

The SBP refinance will be up to 100pc of financing to the eligible borrowers in category 2 and category 3.

The State Bank’s service charges or refinance rate will be 3pc for category 1; 2pc for category 2 and 3pc for category 3. Maximum bank spread would be 3pc, 4pc and 3pc respectively for the three categories.

Published in Dawn, July 27th, 2019