January 7 (Renewables Now) - The International Finance Corporation (IFC) on Monday announced an agreement with the Sustainable and Renewable Energy Development Authority (SREDA) of Bangladesh to back a solar power project with a capacity of between 35 MW and 50 MW in the Asian country.
IFC, part of the World Bank Group, will act as lead transaction advisor on the pilot scheme in the Kushtia district and will also help with structuring and tendering the project, which will be developed under a public-private partnership model.
The solar park will be built on marginal low-lying land to demonstrate a viable model for solar power generation in Bangladesh, where land limitations pose challenges for renewable energy projects.
"By engaging the private sector, we aim to promote more investment in renewable energy projects in Bangladesh and reduce reliance on thermal energy," IFC country manager for Bangladesh, Bhutan and Nepal, Wendy Werner, said. Bangladesh is looking to increase the share of renewable sources in its power mix to 10% of generation by 2021 and to 20% by 2030 from less than 3% currently.
The European Commission's Directorate General for International Cooperation and Development, Germany's Federal Ministry of Economic Cooperation and Development, and the Sustainable Development Investment Partnership are backing the funding for consultants to the project.