Country:Pakistan
Year:2009 (last amended 2016)
Policy status:In Force
Jurisdiction:National
Date Effective:2009 (last amended 2016)
Date Amended:

2011, 2012, 2013, 2015, 2016

Policy Type:Economic Instruments>Fiscal/financial incentives>Loans
Renewable Energy Policy Targets:Multiple RE Sources, All
Policy Sector:Electricity
Size of Plant Targeted:Small and Large
URL:http://www.sbp.org.pk/smefd/circulars/2016/C3.htm
URL:http://www.sbp.org.pk/smefd/circulars/2016/C3-Annex-B.pdf
Renewable Energy Description:

The scheme provides concessional financing for large and small scale renewable energy projects including solar, wind, hydro, biogas, bio-fuels, bagasse cogeneration and geothermal. 

Financing is provided on a first come first served basis for projects achieving financial closure up-to June 30, 2019. The State Bank shall provide refinance to each bank/ Development Finance Institutions (DFIs) on service charge (mark-up) basis.

Projects between 1 MW and 50MW:

  • Financing will be available to developers who have completed prescribed requirements of Alternative Energy Development Board (AEDB) and other relevant Government Departments
  • State Bank of Pakistan will provided a maximum refinance of PKR 6 billion (USD 57.3 milion) to the banks/DFIs for a single project.
  • Service charges and rates for end users have been fixed as per the following:
    • Tenor: up to 12 years
    • Rate of Refinance: 2%
    • Bank’s/DFIs’ Spread: 4%
    • End User’s Rate: 6%

Projects between 0.004 MW to 1 MW

  • Financing will be available to developers who have completed prescribed requirements of Alternative Energy Development Board (AEDB) and other relevant Government Departments
  • Service charges and rates for end users have been fixed as per the following:
    • Tenor: up to 10 years
    • Rate of Refinance: 2%
    • Bank’s/DFIs’ Spread: 4%
    • End User’s Rate: 6%
Related Documents:

To view full version of the Revised SBP Financing Scheme for Renewable Energy (2016 amendment) please click here.

Last modified: Tue, 29 Nov 2016 15:11:44 CET