Under the solar home systems (SHS) component of the Sindh Solar Energy Project financed by the World Bank with $100 million, 200,000 households will be targeted in off-grid regions and those with limited access to electricity. Pictured are women fetching water from a well in a Pakistani village on a World Bank file photo. (Photo Credit: Caroline Suzman/World Bank/Flickr)
- The Government of Pakistan has signed a financing agreement with the World Bank for $100 million
- It will be used to implement Sindh Solar Energy Project, approved by the bank in June 2018
- The project will seek to develop 400 MW utility scale solar, 20 MW distributed solar and deploy 200,000 solar home systems in Sindh province
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The World Bank has approved a financing package of $100 million to support the Sindh Solar Energy Project in Pakistan. It signed an agreement to this effect with the Government of Pakistan. According to the Bank, this project will ‘increase solar power generation in the country and increase access to energy in Sindh province.’
The Sindh Solar Energy Project has 4 components:
- Utility Scale Solar: Efforts will be made to identify and develop a series of publicly owned solar parks through a competitive tendering process for the construction of solar projects within solar parks. The aim is to develop 400 MW of new solar power capacity with $40 million going to this component and starting with an initial 50 MW pilot project, the bank revealed in June 2018.
- Distributed Solar: The government will aim for procurement and installation of PV systems and associated equipment on rooftops and other available space on and around public sector buildings of at least 20 MW capacity. The financial component for this segment is $25 million.
- Solar Home Systems: Off-grid areas or those with limited access to electricity will be targeted to use solar home systems (SHS), along with spreading consumer awareness, product certification, monitoring and evaluation (M and E) activities, and the like. Private Sector firms will receive $30 million in grants for the commercial provision of SHS to 200,000 households.
- Capacity Building and Technical Assistance: This component relates to supporting the design and implementation of the project and compliance with fiduciary, gender, procurement, safeguard requirements, etc., and will get remaining $5 million from the $100 million grant.
The Bank had approved this project on June 14, 2018. It is expected to be developed by September 2023, according to the official documents. It will be up for a mid-term review in November 2020.