Sindh Solar Energy Project
Start & End Date: 2018-2023
Country/Countries: Pakistan
Multilateral Institution(s) Involved: World Bank
Pakistan, with an estimated population of over 207 million people, is the world’s sixth most populous country. It was one of the first countries to reform its power sector, in the early 1990s. Despite the promising start, improvements in power sector performance remain elusive. Key weaknesses, such as a lack of commercial discipline, the occurrence of power shortages and an unused hydropower and renewable energy potential remain to this day. Against this backdrop, solar energy is seen as a cost-effective option for additional electricity capacity and a way to move away from imported fossil fuels and address climate change and air pollution.
The development objective of Sindh Solar Energy Project for Pakistan, aims to increase solar power generation and access to electricity in Sindh Province. This project has four components. 1) The first component, Utility-Scale Solar, aims for identification and development of a series of publicly owned solar parks, and support for the competitive selection of private sector developers through solar auction for the construction of solar power plants in the solar parks. 2) The second component, Distributed Solar, aims for procurement and installation of solar PV systems and associated energy management systems on rooftops and other available space on and around public sector buildings. 3) The third component, Solar Home Systems, aims for deployment of affordable SHSs in prioritized areas with low or no access to electricity, analysis and identification of priority areas, activities to enhance consumer awareness and financial literacy, product certification and quality control, and Monitoring and evaluation (M and E) activities. 4) The fourth component, Capacity Building and Technical Assistance, aims to support the design and implementation of the project and compliance with fiduciary, gender, M and E, procurement, and safeguards requirements. It is implemented by the Energy Department of the Government of Sindh.
The first disbursement was made in September 2019, and notwithstanding significant delays in implementation (including as a result of the COVID-19 pandemic and related restrictions) the project has reported additional outcomes and results since the last project update in December 2021. As of December 2021, 15 sites (6,045 MW) of solar power on the rooftops of public hospitals under the special COVID-19 response measures have been comissioned, with the remaining 20 sites due to be fully commissioned soon. Furthermore, sales and installations of solar home systems (SHS) in two pilot districts have commenced, with over 200 SHS sold by two different approved suppliers.