TAHIR AMIN

ISLAMABAD: The World Bank (WB) has announced to support Pakistan’s first tariff-based 50 megawatt (MW) solar power project in Sindh.

The WB Country Director to Pakistan, Patchamuthu Illangovan in a tweet has stated that Pakistan’s first tariff-based auction for solar power supported by World Bank, aims to attract private investments.

According to the WB, the estimated cost of the project is $300 million including $200 million by the International Bank for Reconstruction and Development (IBRD) and $100 million by Green Climate Fund.

The government of Sindh has announced its intention to launch a tariff-based auction to develop a 50 megawatt (MW) solar power project in the province. This will be the first project to implement the decision of the National Electric Power Regulatory Authority (NEPRA) on March 3, 2017 to enable tariff-based auctions for solar photovoltaic (PV) power projects, replacing the previous up-front tariff regime. Tariff-based auctions have been successful internationally in rapidly reducing the price of solar power and are the least-cost generation option in many countries.

The pilot solar auction is one component of a larger programme on solar and renewable energy being developed by the Energy Department, the Government of Sindh, with the support of the World Bank. The programme is currently under preparation, with plans to include development of utility-scale renewable energy projects, rooftop solar on public buildings, and support for off-grid electricity provision in rural areas. A key objective of the program is to attract private investment into solar power in Sindh, including foreign direct investment.

A statement issued by the Information Department states, “Speaking at the One Planet Summit in Paris, Agha Wasif Abbas, Energy Secretary, the Government of Sindh, said, “We are excited that Sindh is leading the way by introducing price discovery for solar power tariffs in Pakistan. This 50MW project is about demonstrating that solar power can be the least-cost generation option, and we look forward to welcoming qualified international and domestic solar power developers to bid on this project, and on subsequent renewable energy auctions.”

The Energy Department has issued a Request for Information (RFI) to solar power developers and investors as a precursor to a formal procurement process that will take place during the second quarter of 2018. The tariff-based auction will follow international standards and procedures to ensure full transparency and ensure least-cost bids are obtained.

The 50MW project is for a site on government-owned land north-west of Hyderabad where there is excellent solar resource potential of over 2,200 kWh/square meter per year. This equates to estimated annual production of around 85,000 MWh of clean, domestic power from the sun per year, immune to the price volatility of fossil fuels.

The RFI will enable the government of Sindh to exchange information and carry out consultations with private sector developers interested in bidding for the project. Interested developers will be invited by the government of Sindh to a consultation workshop to take place in early 2018. This will be followed by a full procurement process in accordance with Sindh Public Procurement Rules and NEPRA Competitive Bidding Tariff Regulations 2017.