The utility scale solar includes development of solar parks to support private sector investment and launching of Pakistan's first competitive bidding for solar power production, starting with an initial 50MW pilot solar auction. The distributed solar includes at least 20MW of distributed solar PV on rooftops and other available spaces on and around public sector buildings in Karachi, Hyderabad and other districts of Sindh, besides provision of solar home systems to 200,000 households in the areas with low or no electricity access.
The total cost of the project is $105 million. The International Development Association (IDA) will extend financing of $100 million for the project and government of Sindh will contribute $5 million. Public funding will be used to leverage private sector investment and/or expertise in the three segments, with an emphasis on long-term sustainability, developing domestic solar PV experience and the emergence of self-sustaining markets.
The project will introduce and showcase international best practice with renewable energy auctions, reduce the headline cost of solar deployment, create sustainable business models for potential replication, build institutional and private sector capacity, and identify opportunities for future renewable energy deployment that address issues of grid integration. The project is designed to help steer Pakistan towards a lower-carbon path to development.
Secretary Economic Affairs Division (EAD) Noor Ahmed signed the financing agreement on behalf of the government of Pakistan while Secretary Energy Department, government of Sindh, Musadiq Ahmed Khan signed the project agreement on behalf of the provincial government.
Country Director World Bank Patchamuthu Illangovan signed the financing and project agreements on behalf of International Development Association.
Illangovan in a tweet stated, "Sindh Solar Energy Project will reduce Pakistan's carbon footprint and support power producers to develop 400MW of new solar power. 200k households will get solar home solutions."
The Secretary EAD thanked the World Bank for extending its continuous support to the government of Pakistan in its efforts to achieve sustainable economic development in the country.