Renewable Energy Scale-Up to Support Green Growth in Pakistan

Project Summary:

The objective of this grant is to provide technical assistance and capacity building to support the Government of Pakistan as they work to attain sustainable development of large-scale and distributed solar PV.  Energy demand in Pakistan is increasing rapidly.  To meet these demands the country is focusing significant investment in the power sector, including construction of coal based power plants, funded through bilateral agreements with China.  Pakistan has considerable potential for renewable energy resources. Recently the Government requested support from the World Bank to develop operations that would address barriers and mobilize investments in solar.  This KGGTF grant will support the Government to explore the feasibility of developing two utility scale solar PV plants, one to demonstrate conjunctive use with hydropower, and the other to demonstrate conjunctive use with wind.  Both wind and hydro are proven available resources in Pakistan as there is significant available land for future large-scale investment.    

The grant will additionally support both the preparation of a rooftop PV pilot program, and the preparation of an off-grid renewable energy-based rural electrification program. Technical assistance and capacity building activities will build the critical skills that policy practitioners and utility engineers require to engage relevant stakeholders to implement plans effectively.  Ultimately, the program aims to support the Government with a clear strategy for renewable energy investment, a knowledgeable team, and the policies to facilitate the development of sustainable energy solutions.  

This grant is linked to Lending ($100,000,000).

List of Activities:

1. Preparation of two utility-scale solar PV projects
2. Preparation of Rooftop PV pilot program - Strengthen capacity to implement green growth / institutionalization
3. Preparation of off-grid renewable energy based rural electrification program 
4. Technical Assistance and Capacity Building Activities

Outcomes:

Output 1:

• GG Action Taken

Output 2:

• GG Action Taken

Output 3:

• GG Action Taken
• Use of knowledge / strengthen capacity

Output 4:

• Use of knowledge / strengthen capacity

Outcomes:

• Improved efficiency: The activities related to siting, interconnection, technical design and institutional capacity building proposed under this project all aim at facilitating the efficient deployment, scale-up and dispatch of utility scale solar PV generation. Without proper technical assistance, there is a substantial risk that Pakistan’s, and specifically the province of Sindh’s, early experience with solar PV generation will be characterized by inadequate technical standards of PV modules eventually leading to grid integration issues, low capacity factors due to sub-optimal siting solar PV capacity, and dispatch scenarios with significant curtailment of solar PV generation. Avoiding these inefficient outcomes is key to establishing long-term support for green growth in Pakistan. In addition, capacity building activities for the off-grid component and rooftop PV component will efficiently help in scaling up infrastructure investments and creation of viable business models.  
• Greater resilience: Pakistan is particularly susceptible to climate risk, given the dependence on hydropower, and fuel price volatility, given the dependence on imported fuels. By supporting the diversification of the energy mix, the proposed activities will help increase the resilience of the physical infrastructure with regard to extreme weather events and other climate change related disasters, and the broader resilience of the sector against the high volatility of fuel prices on international markets and the dependency on fuel imports. Furthermore, by building government capacity at the local and national level, and by supporting Government in gaining experience with variable renewable energy generation, the proposed activities will help increase the institutional capacity in Pakistan to develop and implement renewable energy policies and projects, thereby setting the country on a path to green growth.  
• Increased competitiveness: Helping Pakistan diversify its energy mix through deploying more renewable energy will make the entire country more competitive to achieve green growth. Renewable energy will present a unique opportunity for Pakistan to fuel its economic growth, create new employment opportunities, reduce healthcare costs, reduce air pollution, mitigate GHG emission and enhance overall human welfare. 

Collaboration with K-Partners and Others:

• The Export-Import Bank of Korea (KEXIM)
• Korea Hydro & Nuclear Power (KHNP)
• Korea South-East Power Company Limited (KOEN)
• The Ministry of Water and Power of Pakistan (MoWP)
• Sindh Department of Energy
• Alternative Energy Development Board (AEDB)
• Water and Power Development Authority (WAPDA) in Pakistan.
• The City Government of Karachi
• K-Electric (to develop the grid connected rooftop PV component)
• Agha Khan Development Network (AKDN)