Industries, individuals to get easy loans for switching to energy-efficient tech

Emran Hossain | Published: 22:33, Feb 20,2017

 
 

The government is adopting a new financial scheme to help individuals as well as industries switch to energy efficient technologies.
The government has named it ‘concessionary financing’ under which individuals may take loans at a minimum interest rate for buying energy efficient electrical appliances, such as industrial machineries and household products.
The state-run Sustainable and Renewable Development Authorities said that overall energy consumptions could be reduced by about 30 per cent by only changing electrical appliances in industries, commercial facilities and houses with energy efficient ones.
The Japan International Cooperation Agency is providing Bangladesh $104 million soft loan for introducing the scheme. SREDA will oversee the scheme in the next two years.
The Infrastructure Development Company Limited and Bangladesh-India Friendship Power Company (Pvt.) Limited will disburse the credit.
‘The loan disbursement will begin soon. Individuals in both industrial and residential sectors can take advantage of it,’ said Sreda Chairman, Anwarul Islam Sikder.
The interest rates for industrial and residential beneficiaries have been set at 4 per cent and 8 per cent, respectively.
‘We believe industrialists won’t have to raise product prices for investing in energy efficient technologies,’ said SREDA’s member Siddique Zobair, explaining the industrial interest rate that is lower than annual inflation.
According to him, SREDA has prepared a list of energy efficient electrical appliances, including industrial machineries, elevators, boilers, and air conditioners, from which the individuals may choose to purchase after getting the loan.
It could not be known how many energy efficient electrical appliances are available in Bangladesh market other than some energy saving lights, fans and ballasts.
‘Individuals having a better energy efficiency solution may not be required to buy from our basket,’ said Zobair.
After being established in 2012, the SREDA has been trying to work out ways to reduce energy consumption without affecting the country’s growth.
This financial scheme is an experiment to that end.
Currently, 34.7 per cent of power supplied from national grid is consumed by the industries while 15 per cent of power is consumed by the households.
According to SREDA’s energy efficiency and conservation master plan, around 31 per cent of the overall energy being consumed by industries can be saved by switching to energy efficient technologies.
Retrofitting of residential buildings with energy efficient electrical appliances may save about 36 percent on household power expenditures, the master plan estimated.
Of the energy consumed by commercial establihments, nearly 50 percent is consumed by ACs and 10 to 30 percent by lighting systems, said the SREDA master plan.

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