Given Pakistan’s year-round exposure to sunlight, there lies great untapped potential for the country in terms of harnessing solar energy as a resource for clean power generation. It is estimated that Pakistan’s solar energy potential stands at around 2.9 million megawatts. In spite of this fact, solar power currently plays a negligible role in Pakistan’s power generation mix.

Renewable energy sources (excluding hydro power) only fulfill 0.3% of Pakistan’s energy needs, which is close to negligible. The country generates 63 percent of its energy from thermal power projects, which rely on the burning of fossil fuels (imported coal, oil and RLNG) to generate electricity.

Pakistan faces a looming energy crisis given its heavy reliance on non-renewable sources, which are becoming more costly. Energy demand is increasing by more than 9% annually in Pakistan – and it is projected that total energy demand will further increase 8-fold by 2030, and 20-fold by 2050 in Pakistan.

Renewable energy sources, in particular solar power, present a sustainable solution to the widening energy demand and supply gap. However, given the higher development risks associated with renewable projects in Pakistan, the private sector is unwilling to further invest in the distribution solar sector.

InfraCo Asia has entered into a joint venture with local developer Albario Engineering Pvt Ltd (AEPL) in Pakistan, with the aim of promoting renewable energy by demonstrating the commercial viability of the distribution solar model, where energy is sold to a private off-taker on a commercial basis and without sovereign guarantees.

Through the joint venture partnership, InfraCo Asia and AEPL have set-up a 40MW solar rooftop platform, targeting off-taker agreements with commercial and industrial (C&I) clients which demonstrate strong financial credibility. It is estimated that up to 58 GWh/year of total power generation capacity will be installed by the Project, wherein various private parties will be the power purchasers.

The Project will provide clean energy supply and allow the local population to purchase cheaper electricity. An estimated 100 people per site will gain improved access to affordable and reliable clean energy. The project is also expected to create 100 jobs during construction and 80 during operation.

Successful implementation of the Project is expected to crowd-in more private investments in Pakistan’s distribution solar power sector.

Watch our recent project film covering the commercial operations of the Pearl Towers project in Faisalabad, Pakistan: