Industry-Specific Study on Energy Efficiency and Renewable Energy Financing Potential for Financial Institutions in Bangladesh

The assignment involved conducting market research for the International Finance Corporation’s South Asia Enterprise Development Facility (IFC-SEDF) to identify financing opportunities in energy efficiency (EE) and renewable energy (RE) in Bangladesh. Conducted from October to December 2010, the study aimed to assess market potential and explore ways to expand access to financing for energy-efficient technologies and renewable energy solutions.

The study focused on identifying opportunities for financial institutions to finance energy efficiency improvements and renewable energy initiatives. It also examined potential business models, partnerships, and service providers that could support the expansion and long-term sustainability of EE/RE financing in Bangladesh.

YC prepared survey tools and research materials and developed structured questionnaires in consultation with IFC-BICF officials. The team also oriented survey personnel on the questionnaires and prepared a list of relevant respondents and organizations to ensure systematic data collection.

The field research covered a diverse range of stakeholders, including 25 banks and financial institutions, 5 energy service companies (ESCOs), 5 donor agencies, 5 research institutes, and 15 suppliers and manufacturers in Bangladesh. This broad stakeholder coverage helped gather insights into financing practices, market demand, technical services, and barriers to investment in energy efficiency and renewable energy.

Following data collection, YC carried out data coding, entry, and analysis to assess financing potential and identify key market opportunities. The research findings supported an understanding of the challenges and enabling factors affecting the development of EE/RE financing products and the participation of financial institutions in this emerging market.

YC prepared and submitted draft and final study reports to IFC. The final report was subsequently published by IFC, providing research-based insights into financing opportunities, potential business models, and stakeholder partnerships to support the growth of energy efficiency and renewable energy financing in Bangladesh.

Assignment Details
Client: IFC-SEDF
Project Location: Dhaka, Bangladesh
Contract Value: Approximately US$16,500
Duration: 3 months (October–December 2010)
Total Staff-Months: 2
Senior Professional Staff: M. Zakir Hossain (Study Coordinator), Mir Ashraf Ali (Field Manager), and three Field Investigators
Key Deliverable: A published IFC study assessing energy efficiency and renewable energy financing potential and opportunities for financial institutions in Bangladesh.