Infrastructure Development Company Limited (IDCOL) signed a Financing Agreement with Baraka Renewable Energy Ltd. (BREL) for a 168 kWp solar mini-grid to be located at Nooner Tek Island in Sonargaon of Narayanganj district. Total cost of the project is BDT 7.14 crore of which IDCOL will provide 30% as soft loan and 50% as grant. IDCOL has received fund for financing such projects from the World Bank, DFID, JICA, KfW, ADB and USAID.
The project will supply electricity to 688 households and 19 commercial entities. Since the island is situated on the estuary of the Meghna River, providing grid electricity to the project location is challenging for the government. The proposed project will ensure uninterrupted supply of grid quality electricity to the people of that area which will expectedly increase the quality of life and increase income generating activities.
IDCOL, a government owned Non-Bank Financial Institution, is a pioneer organization for promoting renewable energy technology in Bangladesh. As of April 2015, more than 3.6 million Solar Home Systems, 38,313 domestic biogas plants, 148 solar irrigation pumps, 5 biogas based power plants have been installed under IDCOL Renewable Energy Program.
IDCOL has a vision to finance 1550 solar irrigation pumps, 50 solar mini grids, 130 biogas based power plants by 2017.