The government of Bangladesh will add up to 310MW of renewable energy to its energy mix as a result of an agreement signed with the World Bank.
The World Bank has agreed to provide Bangladesh with up to $185 million in funding to accelerate renewable energy adoption in the country.
The development will help reduce carbon emissions and to contribute to the provision of affordable energy to consumers.
The funding will finance the country’s Scaling-up Renewable Energy Project which will establish the country’s first large-scale 50MW grid-tied solar PV system in Feni.
The projects will be implemented by the Electricity Generation Company of Bangladesh.
The funding will also support the Infrastructure Development Corporation Limited in managing its Renewable Energy Financing Facility for both rooftop and utility-scale solar PV. The project is expected to raise up to $212 million in financing from the private sector, commercial banks, and other sources.
The Sustainable and Renewable Energy Development Authority will also use the fund to identify sites for large-scale projects and promote new net metering policy for rooftop PV.
“Since the last decade, the World Bank has helped Bangladesh increase access to electricity in rural areas through renewable energy. Today, Bangladesh has one of the world’s largest domestic solar power programme that serves about one-tenth of the country’s population,” said Dandan Chen, Acting Country Director for Bangladesh and Bhutan. “Now, we are going one step further to help Bangladesh expand renewable energy generation on a larger scale. With strong collaboration between the public and private sector, we hope the project will help meet the growing energy demands of the population.”
The $185 million credit also includes a $26.38 million loan and a $2.87 million grant from the Strategic Climate Fund (SCF) of the World Bank’s Climate Investment Funds.