BAKU, Azerbaijan, Jul. 20
By Nargiz Sadikhova - Trend:
Financial support to small and medium businesses (SMEs) and households will be provided in Kazakhstan to stimulate investment in small-scale renewable energy, UNDP office in Kazakhstan told Trend.
The corresponding agreement under the 'Reducing the risks of investing in renewable energy projects’ joint initiative was signed by Kazakhstan’s Damu Entrepreneurship Development Fund JSC and the United Nations Development Program (UNDP) in Kazakhstan.
The UNDP official said that the project aims to support the so-called small scale renewable energy projects/technologies.
“For example: roof top solar, mini hydro, wind, biomass projects, heat pumps with the capacity up to 3 MW electric or 1 MW thermal. The total cost of each supported project should not exceed $800,000,” the UNDP official said.
The financial support will be provided to SMEs and households, who want to install renewable energy systems for their own needs.
“The financial support includes the following: 10 percent subsidy of interest rates on loans; issue of green bonds; paying off up to 25 percent of the main loan. The UNDP project’s fund will be directed through the Fund to the local SME’s as a different subsidy,” the official said.
Talking short term plan of the cooperation the official said that the goal is to promote and to boost further the development of small scale renewable energy projects in the country.
“The long-term plan is to show the government how these project could be realized. It is also important to show what kind of possible investment sources could be mobilized further since the project has a limited budget and terms,” the UNDP official said.
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