World Bank signs US$100 million financing to support solar energy in Pakistan
- World Bank
- International Development Association (IDA)
The World Bank has signed a financing agreement worth US$100 million to support the deployment of solar power in Sindh, a province in the south-east of Pakistan, spanning three market segments: utility scale, distributed generation, and at the household level.
The utility scale element includes the development of solar parks to support private sector investment and launching of Pakistan’s first competitive bidding for solar power production, starting with an initial 50 MW pilot solar auction.
The financing will also support the installation of at least 20 MW of distributed solar power plants on rooftops and other available space on and around public sector buildings in Karachi, Hyderabad and other districts of Sindh Province, as well as the provision of solar home systems to 200,000 households in areas with low or no electricity access.
The total cost of the project is US$105.0 million. The International Development Association (IDA) will extend financing of US$100.0 million with the Government of Sindh contributing the remainder.
Public funding will be used to leverage private sector investment and/or expertise in the three segments, with an emphasis on long-term sustainability, developing domestic solar PV experience, and the emergence of self-sustaining markets.