The Asian Development Bank (ADP) will grant a loan of $20 million dollars to improve the energy efficiency of Bangladesh’s energy system.
Another $25.44 million will be used to promote off-grid photovoltaics for agricultural irrigation, consisting of $22.44 million from the Climate Fund’s Renewable Energy in Low Income Countries Program and $3 million from the Clean Energy Fund for Output-based Aid under the ADB-managed Clean Energy Financing Partnership Facility.
“High diesel costs for irrigation are not sustainable and affordable for small farmers in rural Bangladesh,” said ADB Senior Energy Specialist Mr. Aiming Zhou. “In an area where grid electricity is not available, using solar energy for irrigation is a promising alternative to diesel-based pumping systems. The project will help meet diverse energy demands, improve livelihoods because of less pollution, and result in savings from the reduction in diesel use for irrigation and other agricultural activities.”
About $11.06 million farmers in remote areas depend on expensive diesel to pump their irrigation systems and consume 1 million tons of diesel per year. Solar-powered irrigation could replace diesel systems, increase energy security and reduce local pollution. This would eliminate 17,261 tons of carbon dioxide emissions.
The $45.55 million grant will be used to reduce the high up-front costs of using SPV pumping systems for agricultural irrigation and make them more affordable for low-income farmers.
In addition, specialist and competence training courses are to be offered to promote career and life opportunities with a focus on women. ADB, based in Manila, is committed to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration.
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