4 October 2011: The World Bank is providing additional financing for Bangladesh to install 630,000 solar home systems in rural areas where grid electricity is either not economically feasible or is hard to reach.

A US$172 million loan will support the ongoing Rural Electrification and Renewable Energy Development Project (RERED) which, through the World Bank, has already installed more than 300,000 solar home systems in Bangladesh. The loan will also be used to install mini-grids in an effort to enhance access to electricity in rural areas, only one-third of which currently have electricity. The credit from the International Development Association (IDA) has 40 years to mature with a 10-year grace period; it carries a service charge of 0.75 percent. [World Bank Press Release]