In a significant move towards sustainable energy development, the Sindh government is joining forces with the World Bank to spearhead renewable energy projects, focusing on solar and wind technologies. The collaboration, aiming to safeguard the environment from greenhouse gases and protect Pakistan against recurring natural disasters, involves a substantial investment of $100 million.
Addressing the audience at the seminar titled ‘Significance of Renewable for Karachi & Export Industry: Cost of Inaction,’ Mehfooz Qazi, Director of Alternative Energy for the Sindh Government, announced the ambitious investment. He highlighted that the funding, provided by the World Bank, is set to generate around 300 megawatts (MW) of electricity, encompassing both wind and solar power initiatives.
The Sindh government, under this collaboration, is dedicated to establishing 500 MW solar power projects, 400 MW hydrogen power projects, and waste-to-energy projects. Qazi emphasized the importance of these eco-friendly power projects not only in mitigating natural disasters but also in providing low-cost energy, a crucial requirement for Pakistan amid persistent inflation challenges.
As part of their commitment to alternative energy, the Sindh government has devised a policy to allocate affordable land for such projects, aiming to harness the vast potential of renewable resources. The government already sources a significant portion of its energy needs from these sustainable projects.
Collaborative efforts between the Sindh government and K-Electric (KE) were also highlighted during the seminar. KE, a Karachi-based private energy firm, has been actively involved in harnessing wind energy from the Gharo wind corridor. The partnership has led to the establishment of two 25MW projects in the Hub area, contributing to the region’s renewable energy portfolio.
During the seminar, findings from a study titled ‘Examining KE’s Cost of Inaction in Deploying Renewables’ were shared by Hammad Ali, an analyst at Renewables First. The study suggested that timely decisions on renewable energy projects by KE could result in substantial cost savings, potentially saving up to $4.51 billion over the next seven years.
Former NEPRA chairman, Tauseef Farooqi, expressed the need for unbundling KE, emphasizing that generation, transmission, and distribution require distinct attention. He advocated for a competitive, transparent, and open market mechanism, aligning with the proposed Competitive Trading Bilateral Contracts Market.
Somanul Haq, the Programme Director of Net Zero Pakistan, highlighted his organization’s commitment to achieving net zero emissions by 2050. He underlined the growing demand for Renewable Energy Credits (RECs) in Pakistan, with 300GWh expected to be sold this year alone. Haq stressed the urgency for a transition towards renewable energy to counter rising fuel costs and unfavorable conditions, which are causing closures of businesses across the country.
This collaborative effort between the Sindh government and the World Bank signifies a pivotal step towards a sustainable and resilient energy future for Pakistan.