News update
  • Dhaka’s air quality ‘unhealthy’ Friday morning     |     
  • Landslide kills couple in Cox’s Bazar Sadar     |     
  • “Talks about ex-DMP Commissioner seem based on speculation”     |     
  • Donors “deeply concerned” by worsening Rakhine situation     |     

BB dedicated fund essential to promote renewable energy: Speakers

Special Correspondent Renewable 2024-06-01, 6:10pm

bb-renewable-energy-89121d8ec52f1eb9a5765f2c133a3a581717243819.jpg

BB dedicated fund essential to promote renewable energy: Speakers



Dhaka, June 01 - Speakers at a seminar today said creation of a dedicated renewable energy fund by Bangladesh Bank is essential to promote green financing.

Otherwise, it will not be possible to remove the existing barriers to access institutional financing, they said while addressing a seminar at the 2nd Dhaka Renewable Energy and Finance Talk.

Change Initiative, a research body, organized the event at the Military Museum Multipurpose Hall in the city.

Tahmid Zami, Bangladesh Correspondent and Climate Reporter of Thomson Reuters Foundation, moderated the event.

M Murshed Haider, Infrastructure Finance and PPP Consultant of World Bank, said one of the key problems in financing renewable energy projects is lack of available funding for long term financing.

“Bangladesh Bank has some refinancing schemes for green products, but there is no dedicated renewable fund for green energy promotion,” he added.

M Murshed Haider observed that safety and a higher return from the investment are also key issues in the case of financing which need to be ensured by the policy support.

Admitting the absence of a dedicated financing scheme for renewable energy, Chowdhury Liakat Ali, Director, Sustainable Finance Department of Bangladesh Bank, said the central bank has been giving policy support to the banks to encourage them to promote renewable energy.

He also admitted that there are some criteria for accessing the refinancing of the central bank which the private investors cannot meet. As a result, banks seek BB directives on the issue.

Mohammad Alauddin, Rector of Bangladesh Power Management Institute and former chairman of Sustainable and Renewable Energy Development Authority (Sreda), said there were some available funds from the international agencies.

But the financial closing to those funds takes a huge time as the investors need to fulfill some criteria to avail the funding, he added. 

He further said that there is huge potential for rooftop solar power in the country. But so far no successful business model was developed on which it could be utilised.

Nayoka Martinez-Bäckström, First Secretary and Deputy Head of Development Cooperation, Embassy of Sweden in Dhaka; Dr Fazle Rabbi Sideque Ahmed, Deputy Managing Director of Palli Karma-Sahayak Foundation (PKSF), and Sabbir Hossain, DMD and Chief Operating Officer of Sustainability Unit of BRAC Bank Limited, also spoke on the occasion

In another session of the seminar, former member of Sreda, Siddique Zobair, said in general, subsidy is not good. But it is essential in the case of promoting renewable energy in transformation from fossil fuel.-UNB