Helping Bangladesh with their Renewable Energy ambitions
Scatec Solar, Bangladesh
Who is our client
FMO provides a USD 2.77 million development contribution to Scatec Solar Bangladesh BV, a long standing relation of FMO. AEF also provided financing to Scatec in Ukraine.
Scatec Solar is developing a 62 MW solar PV plant located in the Baispukur village in the Nilphamari northern district of Bangladesh.
Why we fund this project
Bangladesh has a fast-growing demand for power which has largely been served with thermal power. This project provides reliable electricity supply and a good renewable alternative to coal-fired plants in a country which has abundant solar resource capacity.
The funding allows Scatec to build out renewable energy capacity in a market which today is still dominated by thermal power plants. Under its Power System Master Plan 2016, Bangladesh aims to add 2,000 MW renewable energy projects by 2021 and has been working on creating an enabling environment for potential investors and lenders to invest in the sector. Completing this project would be a step towards these ambitious goals. The project is expected to generate an average of 86 GWh of electricity annually.
The main E&S impacts and risks relate to economic displacement of current subsistence agricultural land-users and to labor conditions and safety during construction. An Environmental and Social Impact Analysis, a Stakeholder Engagement Plan and a Livelihood Restoration Plan in accordance with IFC Performance Standards will be completed by Q2-2020.