WB to finance solar mini grids in rural areas

The World Bank (WB) will finance renewable energy-based mini grids in remote rural areas to produce one megawatt electricity through its second phase of Rural Electrification and Renewable Energy Development (RERED II) Project.
"The RERED II project is supporting renewable energy-based mini-grids in remote rural areas to provide electricity. A number of new mini-grids with a combined capacity of about 1MW are currently under consideration for financing," the global lender said in a statement.
Targeting rural growth centres, the mini-grids are expected to contribute to increased economic activities in rural areas, the statement said.  
The project has mobilised grant from the US Agency for International Development (USAID) to provide financial support to the mini-grid schemes besides credit support from the International Development Association (IDA), the concessionary lending of the World Bank.
The project also supported installation of around 100 solar irrigation pumps replacing diesel-run pumps, the statement said.
The solar irrigation pumps are reducing costs of irrigation to the farmers and also helping to save foreign exchange for importing diesel. By providing a renewable source, the solar irrigation pumps are also contributing to reduced green-house gas emissions. The Bangladesh Climate Change Resilience Fund (BCCRF) has also provided US$10 million matching grant support to solar irrigation pumps component.
The RERED II project is continuing to provide access to electricity in rural areas of Bangladesh through renewable energy sources.  The project has provided access to electricity to over 377,000 households in remote rural areas where grid electricity cannot reach easily.
More than 50,000 rural households access electricity every month through the solar home systems (SHS) programme supported by the WB and other development partners.
Implemented by the government-owned Infrastructure Development Company Limited (IDCOL) through a partnership with the non-government organizations (NGOs), the SHS programme is an example of public-private partnership (PPP).
To meet the demand of the growing programme, the bank is currently processing an additional financing to the project, in response to the government's request for more funding.  
The additional financing will further scale-up support to the successful SHS programme and provide support for sector technical assistance when approved by the World Bank board.
The WB statement said more than 28 million households in Bangladesh still rely on traditional biomass fuels burnt in inefficient stoves. With support from the RERED II project, IDCOL has embarked upon the improved cook stoves program that will benefit rural women and children, who are exposed to indoor air pollution from inefficient stoves.  49 NGOs have been selected by IDCOL for implementing the cook stove program, and implementation is expected to start shortly.