KARACHI: The State Bank of Pakistan (SBP) has enhanced the capacity limit of all renewable power projects from 10MW to 20MW for financing under the ‘Scheme for Financing Power Plants Using Renewable Energy.’

Banks/Development Finance Institutions (DFIs) can consider financing requests of the sponsors, who intend to set up Power Projects up to a maximum capacity of 20MW, using all types of renewable energy sources eligible under the Scheme, says IH&SMEFD Circular Letter No.11, issued to the Presidents/CEOs of all banks/DFIs on Monday.

The maximum financing limit to a single renewable power project under the Scheme has also been fixed at Rs 3 billion to accommodate larger number of borrowers. However, banks/DFIs may continue to provide financing facilities as per their credit policies over and above the maximum limit from their own sources subject to adherence to the Prudential Regulations, the Circular Letter added.

SBP has taken these steps to promote power plants using Renewable Energy in the country after receipt of feedback from the Alternative Energy Development Board (AEDB).