The Sindh Solar Energy Project is significantly behind schedule due to significant implementation delays, including those caused by the Covid-19 pandemic and its restrictions.
The “Sindh Solar Energy Project” is a $105 million project that the Sindh Energy Department (SED) has extended, reallocated funds among its components, and added flexibility to.
According to official records, the overall implementation progress rating has been kept at “Moderately Unsatisfactory.”
The project’s goal is to increase solar power generation and access to electricity in Sindh. It was approved by the World Bank’s Board of Executive Directors on June 14, 2018, and it went into effect on January 9, 2019.
The Sindh Solar Energy Project is significantly behind schedule due to significant implementation delays, including those caused by the Covid-19 pandemic and its associated restrictions.
There isn’t much groundwork progress to report for Component 1, but two Requests for Proposals (RfPs) are expected to launch competitive bidding soon for three sites. The first location in the Jamshoro district received approval for 50 MW of utility-scale solar, with the federal Central Power Purchasing Agency as the power off-taker.
The Sindh Energy Department, K-Electric, and the World Bank signed a Memorandum of Understanding in December 2021 for the sourcing of 350 MW of solar capacity. The National Electric Power Regulatory Authority is reviewing the RFP for all three locations to establish a “benchmark tariff”.
SED has completed 25 sites (12.97 MW) for the installation of solar power on public hospitals, leaving seven to be finished. Additional rounds of procurement are being planned, and a second round of procurement has already been completed for 10 MW of solar capacity.
Since initial sales in late 2021 and early 2022, component 3’s sales and installations of solar home systems (SHS) have stalled. In order to overcome these difficulties and put this component back on track within the next six months, the SED has put forth solutions.
Under Component 4, there has been little implementation, but 300 solar technicians have been trained. Most of the money allocated to this component should be transferred to Component 2.
“Moderately Satisfactory” is the rating for the project’s progress towards achieving its project development objective. To get the project back on track, the WB has offered advice and approved a list of actions.
The project’s full and expedited implementation would help Sindh province households have reliable electricity while reducing the cost of production and offsetting fuel imports. Additionally, SED has submitted a revised PC-1 to the Federal Planning Commission that includes changes to the project’s length, funding distribution among its components, and flexibility additions.