The Infrastructure Development Company Limited (IDCOL) has signed a financing agreement with Baraka Renewable Energy Ltd (BREL) for a 168kWp (kilowatt-peak) solar mini-grid to be set up at the river island known as Nooner Tek in Sonargaon of Narayanganj.
The estimated total cost of the project is Tk7.14 crore, of which IDCOL will provide 30% as soft loan and 50% as grant. IDCOL has received fund for financing such projects from the World Bank, DFID, JICA, KfW, ADB and USAID.
From next January, the project is expected to supply electricity to 688 households and 19 commercial entities on the island, which is situated on the confluence of the Meghna River.
Once implemented, the project will ensure uninterrupted supply of grid-quality electricity to the people of that area, which will in turn increase the quality of life and increase income generating activities.
IDCOL, a government owned non-bank financial institution, promotes renewable energy technology in Bangladesh. As of April 2015, more than 3.6 million solar home systems, 38,313 domestic biogas plants, 148 solar irrigation pumps, five biogas-based power plants have been installed under IDCOL’s renewable energy programme.
IDCOL has a vision to finance 1550 solar irrigation pumps, 50 solar mini grids, 130 biogas based power plants by 2017.