The International Finance Corporation (IFC) has signed an agreement with Sustainable and Renewable Energy Development Authority (SREDA) of Bangladesh to back a solar project with a capacity between 35MW and 50MW in Bangladesh.

IFC, which a member of the World Bank Group, will act as lead transaction advisor to SREDA for the project located in the Kushtia district. It will also help SREDA in structuring and tendering the pilot project, which will be developed under a public-private partnership model.

IFC said that the project will be built to demonstrate a viable model for solar power facility in Bangladesh.

Bangladesh plans to double the share of renewable sources in energy mix by 2030

According to IFC, about 90% of the citizens of Bangladesh have access to electricity. To increase access, the country is planning to increase the share of renewable sources in its energy mix from less than 3% to 10% by 2021 and double that by 2030.

At present, more than 90% of electricity is being generated by the country. With land limitations, Bangladesh is also facing challenges for renewable energy projects.

IFC Bangladesh, Bhutan and Nepal country manager Wendy Werner said: “This is a unique concept as it will support the government in creating a viable and sustainable renewable energy model in Bangladesh, using marginal low-lying land to produce solar energy. This model can be repeated across the country.

“By engaging the private sector, we aim to promote more investment in renewable energy projects in Bangladesh and reduce reliance on thermal energy.”

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.

In November last year, IFC and the North American Development Bank (NADB) agreed to provide a $200m loan to Infraestructura Energética Nova (IEnova) to fund four solar projects in Mexico.