The government of Malaysia as well as the banking sector is focusing in providing attractive incentives and loans for Renewable Energy / Energy Efficient projects investment. This is in view that the market growth is more responsive to reduction in costs and risks, than to gifts and subsidies. Thus, loan funding and / or the use of smart incentives is expected to initially build the market volume. For convenience, the loans and support are dedicated and eligible only to companies that help support the engineering, procurement, construction and commissioning of RE / EE project.
Under the Bank Pembangunan Malaysia Berhad (BPMB) scheme, they are offering wide range of financing facilities for RE and EE projects (biomass, biodiesel, mini hydro, solar, municipal solid waste (MSW) and energy conservation / efficiency). To cater the the asset acquisition and working capital requirement, BPMB also offers financing facilities based on Syariah principles as an option. Two scheme were introduced;
Renewable Energy and Energy Efficiency Scheme I
Scheme introduced in 2006, allows a business to borrow up to 80% of total project cost with attractive interest rate and repayable up to 15 years.
Renewable Energy and Energy Efficiency Scheme II
Phase 2 launched in 2007 with additional allocation of RM 1.0 billion to attain the anticipated increase interest in RE projects. The companies are allowed to borrow up to 85% of total project cost with attractive interest rate and repayable up to 15 years.
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