Development of rooftop C&I solar projects to provide affordable electricity


Context

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 fulfil 0.3% of Pakistan’s energy needs, which is close to negligible. The country generates 63% of its energy from thermal power projects, which rely on the burning of fossil fuels (imported coal, oil and LNG) 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.

The Project

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 50MW 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.

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

Our Impact

Impact on planet: The project will contribute to increase the renewable installed capacity in the country and displaced GHG emissions, mostly from commercial and industrial customers, currently relaying on fossil-fuels produced electricity.

Impact on wider economy: the project expects to produce cost savings of up to 33% for Commercial and industrial customers the off-takers.

DEVELOPMENT IMPACT
9,300
people with improved access to electricity
145
jobs created during construction
65
jobs created during operation
SUSTAINABLE DEVELOPMENT GOAL(S)

Company

Prism Energy (Private) Limited

Total Project Cost

US$ 31M

Country

Pakistan

Region

Punjab Province

Timeline

  • Project approved in March 2019
  • JIDA signed in Nov 2019
  • Financial close in Feb 2021
  • First commissioned sub project in Feb 2022

Sector

Power and energy (Solar Energy)

InfraCo Asia Funding Committed

US$ 5M

Other PIDG Funding Committed

N/A

Watch

Unlocking solar power potential in Pakistan

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