The Sukkur solar project will contribute to the development of renewable energies in Pakistan, a country with a huge potential. The Norwegian company Scatec decided to take advantage of this by partnering with Nizam Energy, a local leader in the field. 100 million USD will be invested for a developed capacity of 150 MW.
A 150 MW solar project in Pakistan
A solar project to supply 150,000 homes
This solar project will not be the last for Scatec, the world’s leading supplier of renewable energy. Indeed, Pakistan benefits from a strong sunshine especially in the South which is not yet sufficiently exploited. It is therefore not abnormal that the location of the park is in the province of Sindh (Southeast).
In addition, 150,000 homes will be supplied with electricity. The annual production should reach 305 GWh while avoiding the emission of 106,000 tons of greenhouse gases.
A project worth more than $180 million and supported locally
Of the USD 100 million planned between Scatec and Nizam Energy, the Norwegian company will invest USD 75 million against 25 million for the Pakistani company. They are not financing the project alone, as the Dutch development bank FMO will also invest $39 million.
Faysal Bank, Bank of Punjab and the local investment fund PAK Kuwait Investment will also participate together with a total of 42.3 million USD. The Energy Regulatory Authority (NEPRA) grants them a benefit for the sale of electricity.
Contribute to the achievement of Pakistan’s energy goals
By 2030, the Pakistani government wants 30% of its electricity mix to come from renewable sources. The country is still too dependent on fossil fuels (65% in 2018).
In a 2018 report, the International Renewable Energy Agency (IAEA) estimated 60 GW of untapped hydropower capacity in Pakistan. 50 GW for wind power.
In conclusion, this solar project will accompany Pakistan in its energy transition. The country also has the natural assets to develop renewable energy to end the current electricity shortages.