DFCC BANK SRI LANKA

One of the greatest challenges the world faces today is to meet the growing demand of energy that is environmentally and socially sustainable and economically affordable. Also in Sri Lanka which is home to about 21 million people, the government is faced with the challenge of providing affordable and ecologically friendly energy to its inhabitants. Considering the financial limitations of the country and the massive investments needed to provide energy to its people, in 1990s the Government of Sri Lanka opted for Build Own Operate (BOO) and Build Operate and Transfer (BOT) schemes to attract private sector investments. The success of these schemes depended also on the ability and willingness of the country’s financial services sector to actively participate in the BOO and BOT projects.

The DFCC Bank took the lead in financing renewable energy projects even at the time when the necessary regulatory and environmental frameworks were not in place. Based on its pioneering role in renewable energy financing and commitment to environmentally sustainable development, DFCC Bank became the partner of choice for managing Energy Services Delivery (ESD) and Renewable Energy for Rural Economic Development (RERED) Projects. These are Sri Lanka´s prime private sector driven projects for electrification of the country through non conventional renewable energy sources.

The DFCC Bank took the lead in financing renewable energy projects even at the time when the necessary regulatory and environmental frameworks were not in place. Based on its pioneering role in renewable energy financing and commitment to environmentally sustainable development, DFCC Bank became the partner of choice for managing Energy Services Delivery (ESD) and Renewable Energy for Rural Economic Development (RERED) Projects. These are Sri Lanka´s prime private sector driven projects for electrification of the country through non conventional renewable energy sources.

The innovative features of ESD and RERED Projects include: market based approach; mandatory community participation; involvement of partners with proven rural outreach; high environmental and quality standards; ensuring consumer protection; use of local know-how and engineering expertise; tailoring of operating guidelines to adapt to the changes in the market; and creating an alliance of a wide range of stakeholders including industry partners such as Solar Industries Association, Village Hydro Developers Association and Grid Connected Small Power Developers’ Association
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