The State Bank of Pakistan (SBP) has launched the Revised Financing Scheme for Renewable Energy, aiming to boost Pakistan’s renewable energy sector. This initiative provides financial incentives for investments in renewable energy projects, ensuring energy security and environmental sustainability. The scheme encompasses various categories with distinct eligibility criteria, financing limits, and terms to cater to diverse stakeholders.
Category I: Financing for Power Plants Using Renewable Energy
Eligibility Criteria
- Projects should utilize renewable energy sources such as solar, wind, hydro, biogas, or geothermal.
- This category is open to all entities, including individuals, companies, and government entities.
Maximum Amount of Refinance
- Up to Rs. 6 billion per project.
Rates of Service Charges / Mark up
| Rate of Refinance | Maximum Bank/DFI’s Spread | Maximum End User Rate |
|---|---|---|
| 3.00% | 1.00% | 4.00% |
Terms of Financing
- Financing is available for up to twelve (12) years, including a maximum grace period of two (2) years from the first disbursement date.
- The principal loan amount is repayable in quarterly or half-yearly installments after the grace period.
- The mark-up is paid every quarter.
Other Terms & Conditions
- SBP provides refinance to banks/DFIs on a service charge (mark-up) basis as per the State Bank of Pakistan Act 1956.
- Refinance is disbursed by SBP BSC (Bank) offices upon submission of required documents.
Category II: Financing for SMEs and Domestic Users for Installation of Renewable Energy Solutions
Eligibility Criteria
- Small and Medium Enterprises (SMEs) and domestic users are eligible.
- Projects should be for the installation of renewable energy solutions like solar panels or wind turbines.
Maximum Amount of Refinance
- Up to Rs. 50 million per project.
Rates of Service Charges / Mark up
| Rate of Refinance | Maximum Bank/DFI’s Spread | Maximum End User Rate |
|---|---|---|
| 2.00% | 2.00% | 4.00% |
Terms of Financing
- Financing is available for up to ten (10) years, including a maximum grace period of one (1) year from the date of first disbursement.
- The principal loan amount is repayable in quarterly or half-yearly installments after the grace period.
- Mark-up is paid on a quarterly basis.
Other Terms & Conditions
- SBP provides refinance to banks/DFIs on a service charge (mark-up) basis as per the State Bank of Pakistan Act 1956.
- Refinance is disbursed by SBP BSC (Bank) offices upon submission of required documents.
Category III: Financing for Vendors and Suppliers of Renewable Energy Solutions
Eligibility Criteria
- Financing is available to vendors and suppliers certified under AEDB Certification Regulation 2018 for installing wind and solar systems on a lease basis or selling electricity.
Maximum Amount of Refinance
- Consolidated borrowing of a single vendor or supplier under this category shall not exceed Rs. 200 million.
Rates of Service Charges / Mark up
| Rate of Refinance | Maximum Bank/DFI’s Spread | Maximum End User Rate |
|---|---|---|
| 1.50% | 1.50% | 3.50% |
Terms of Financing
- Financing is available for up to seven (7) years, including a maximum grace period of one (1) year from the date of first disbursement.
- The principal loan amount is repayable in quarterly or half-yearly installments after the grace period.
- Mark-up is paid on a quarterly basis.
Other Terms & Conditions
- SBP provides refinance to banks/DFIs on a service charge (mark-up) basis as per the State Bank of Pakistan Act 1956.
- Refinance is disbursed by SBP BSC (Bank) offices upon submission of required documents.
Certainly! Here are 10 FAQs about the Revised SBP Financing Scheme for Renewable Energy:
FAQ: Revised SBP Financing Scheme for Renewable Energy
What is the Revised SBP Financing Scheme for Renewable Energy?
The Revised SBP Financing Scheme for Renewable Energy is an initiative by the State Bank of Pakistan (SBP) to promote investments in renewable energy projects. It provides financial incentives to various stakeholders, ensuring energy security and environmental sustainability in Pakistan.
What types of renewable energy projects are eligible under Category I?
Under Category I, projects utilizing renewable energy sources such as solar, wind, hydro, biogas, or geothermal are eligible. This category is open to all entities, including individuals, companies, and government entities.
What is the maximum amount of refinance available for projects under Category I?
The maximum amount of refinance available for projects under Category I is up to Rs. 6 billion per project.
What are the rates of service charges and mark-up for Category I?
For Category I, the rates are:
- Rate of Refinance: 3.00%
- Maximum Bank/DFI’s Spread: 1.00%
- Maximum End User Rate: 4.00%
What are the terms of financing for Category I?
Financing under Category I is available for up to twelve (12) years, including a maximum grace period of two (2) years from the date of first disbursement. The principal loan amount is repayable in quarterly or half-yearly installments after the grace period, with mark-up paid on a quarterly basis.
Who is eligible under Category II for financing?
Category II is open to Small and Medium Enterprises (SMEs) and domestic users for the installation of renewable energy solutions like solar panels or wind turbines.
What is the maximum amount of refinance for projects under Category II?
The maximum amount of refinance available for projects under Category II is up to Rs. 50 million per project.
What are the service charges and mark-up rates for Category II?
For Category II, the rates are:
- Rate of Refinance: 2.00%
- Maximum Bank/DFI’s Spread: 2.00%
- Maximum End User Rate: 4.00%
What are the terms of financing for Category III?
Financing under Category III is available for up to seven (7) years, including a maximum grace period of one (1) year from the date of first disbursement. The principal loan amount is repayable in quarterly or half-yearly installments after the grace period, with mark-up paid on a quarterly basis.
Who can apply for financing under Category III?
Financing under Category III is available to vendors and suppliers certified under AEDB Certification Regulation 2018 for installing wind and solar systems on a lease basis or selling electricity. The consolidated borrowing of a single vendor or supplier under this category shall not exceed Rs. 200 million.
Conclusion
The Revised SBP Financing Scheme for Renewable Energy aims to promote sustainable energy practices and enhance Pakistan’s energy security. By providing favorable financing terms for renewable energy projects, the scheme encourages investments in green energy, contributing to economic growth and environmental protection. Potential beneficiaries are encouraged to explore the scheme’s various categories and engage with participating financial institutions to take advantage of the offered incentives.
This scheme demonstrates Pakistan’s dedication to fostering a sustainable future and combating climate change through renewable energy investments.