Climate compatible development in Pakistan

Pakistan’s energy sector is in crisis. Inadequate electricity supplies cost the country USD 14 billion annually and some 11,000 small and medium size enterprises (SMEs) operate at just 60% of capacity. Sialkot City in the Punjab is one of Pakistan’s most emblematic industrial hubs. 

Assessing local options for climate compatible development

Together with our local partner PITCO, Ecofys analysed Sialkot’s industrial energy demand and the availability of renewable energy technologies around the city. In a series of workshops we supported over 100 Sialkot industrialists in analysing their energy demand, the distribution among different company sizes and the renewable energy options available, along with associated costs, savings potential and emissions reductions. The assessment showed that photovoltaic (PV) panels for industry would be the most viable option for Sialkot SMEs. Sialkot’s geographical location enjoys good solar radiation and PV panels are affordable and their modularity allows industrialists to install the capacity that fits their needs. Preliminary assessments showed that the use of PV panels would enable the SMEs to mitigate up to 377,000 tons of carbon dioxide and yield electricity savings of US$27,400 per year on average.

Preparing the implementation

Currently Ecofys and PITCO are assisting the Government of Pakistan in developing a viable approach to deploy PV panels in Sialkot. The approach includes awareness raising campaigns on the technology, technical support schemes, and a fundraising strategy. The project follows the framework of a Nationally Appropriate Mitigation Action (NAMA) as a policy instrument to help the government of Pakistan raise funds from international climate finance, eg the Green Climate Fund, and provide Sialkot’s industry with the renewable energy.

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Katja Eisbrenner and Noémie Klein presented the project in a webinar hosted by CDKN on 25 April 2017. The recording "A NAMA for the electrification of Sialkot with photovoltaic technology" can be watched here: