Renewable energy has brightprospect in country

Md Mazadul HoqueRenewable energy sector sees a boom following the central bank directive to disburse loan in environment-friendly sector, which will help improve the nagging power situation in the country. Bangladesh Bank (BB) early this year urged the commercial banks to disburse loans in renewable energy projects and thus help reduce the power crisis which emerged as a major obstacle to the country's economic growth. BRAC Bank is a pioneer in promoting renewable energy in the country. Deputy Managing Director of the bank Mohammad Mamdudur Rashid told the FE that the bank was conducting multidimensional activities to create alternative energy source under the philosophy-people, planet and profit. "We are financing renewable energy projects and installing solar panels in our own offices as part of our commitment to green energy for the sake of environment", Mr Rashid said. As a pilot project a bio-gas project has been set up at Aliar village in Langolkot of Comilla district which would go into full operation soon, he said. This project would produce 150 cubic metres of gas and eight kilowatts of electricity from which the nearby community would be benefited, Mr Rashid said. As raw materials of bio-gas are poultry litter, we would undertake our next projects near big poultry farms, he said. Mr Rashid said the bank will finance the firms which are connected with renewable energy. Mr Rashid also said the bank is also encouraging individuals to take loans for installing solar panel in their dwelling places. Moreover, the bank is considering undertaking more projects to produce alternative energy in remote areas where electricity has not yet reached, Mr Rashid added. Mr Rashid said there is a good number of entrepreneurs who have a great desire to set up small projects but due to non-availability of electricity cannot do so and if the banks can help them have alternative energy, economic growth of the country would get momentum. Mutual Trust Bank (MTB) has recently started financing the alternative energy sector. Head of Marketing of MTB Mohammed Sami-Al Hafiz told the FE that his bank had been financing irrigation and dwelling places using solar energy. Already two irrigation projects have been undertaken by them in Barguna and Panchagar districts, which would be run using solar energy, he said. As power-outage is a common phenomenon in big cities, the people are now willing to take loans for installing solar panel in dwelling places, Mr Hafiz said. "We are also looking forward to financing in bio-gas plants", he said. Managing Director of Social Islami Bank, Muhammad Ali told the FE that they were working in full swing to make a pollution-free country by investing in potential sectors and they would make soon a big investment in renewable energy sector. "Moreover, now we are working to install solar panel in our two branches," Mr Ali said. Head of Marketing of the Bank M Shamsuzzaman told the FE that his bank had already taken an imitative named 'Solar Panel Investment Scheme' to attract customers from any branch across the country. "We will invest in those areas where electricity has not yet reached", he said. Globally, HSBC is one of the largest financiers of renewable energy businesses and projects. Public Affairs Manager of HSBC, Iftekhar Hasan told the FE that renewable energy offered immense potential. "As the renewable energy industry grows in Bangladesh, we hope to increase our involvement in this sector", he said. "As the world's first 'carbon neutral' global bank, we are committed to contributing to this sector - not just in quest of commercial success, but also as responsible corporate citizens and we would follow the same strategy in Bangladesh in the coming years too", Mr Hasan said further.