Renewable Bonds

The government plans to roll out a “Renewable Energy Support Bond” for Rs. 2 billion in 2006 to raise funds supporting rural electrification through renewable energy, Finance Minister Sarath Amunugama said Tuesday. The government plans to roll out a “Renewable Energy Support Bond” for Rs. 2 billion in 2006 to raise funds supporting rural electrification through renewable energy, Finance Minister Sarath Amunugama said Tuesday.

The government will also dish out a Rs. 10,000 subsidy for each new renewable energy connection for rural households, to increase access to 300,000 more households in three years.

“We have allocated Rs. 500 million for this purpose. Further, I propose a “Renewable Energy Support Bond” for Rs. 2 billion in 2006 through a development financing institution to provide financing to support rural electrification through these energy sources.”

There is currently 74 MW in grid connected renewable power, with 75,000 households receiving energy from solar homes.

In September this year, Cabinet also approved a higher tariff of Rs. 8.00 for alternative energy like dendro power, over and above the Rs. 5.40 a unit paid by a CEB.

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