Scatec & Nizam Energy End Funding for Solar Power Plant in Pakistan

completed solar power plant at Sukkar Pakistan by Scatec and Nizam energy
  • Scatec and Nizam Energy have ended funding for Sukkur solar power plant project in Pakistan
  • The 150-megawatt Sukkur solar power project has an outlay of approximately 100 million dollars. The credit facilities have a shared cost of 75% on the whole project.
  • The project is based on renewable energy sources and will deliver electricity to nearly 150,000 households.
  • Sukkar power project is situated in Sindh, Pakistan and in 2020 the portfolio of this project was granted by NEPRA.

 

News has reported that Scatec and its collaborative ally Nizam Energy have ended funding for Sukkur solar power plant project in Pakistan.

The 150-megawatt Sukkur solar power project has an outlay of approximately 100 million dollars. The Sukkar project is based on non-recourse debt funding and credit agreements have been signed by Pak Kuwait investment, Bank of Punjab, Faysal bank, the Dutch development bank, and FMO. The credit facility shared by FMO has a contribution of 39 million dollars while commercial banks have shared an aggregation of 2.2 billion rupees. The credit facilities have covered nearly 75% cost of the whole project.

The SEO of Scatec, Raymond Carlsen has announced that Scatec and its collaborative partners are proud to finish funding of the first project in Pakistan. The Government of Pakistan has decided to increase the utilization of renewable energy sources up to 30% before 2030. The Sukkar power project is based on renewable energy sources producing 305 Gigawatt hours per year. It will deliver electricity to nearly 150,000 households. There will be reduced emission of greenhouse gases per year nearly up to 106, 000 tonnes.

The Solar power project is situated in Sukkur- one of the cities in Pakistan located nearby the western bank of the Indus River. Sukkar is the third-largest city in the Sindh province of Pakistan. Among the list of most populated cities in Pakistan, it is ranked at the 14 number. The city shares boundary with Rohri which is famous as a historic city in Pakistan.

In 2020 the National Energy Power Regulatory Authority granted a “costs plus tariff” to the portfolio of the Sukkar power plant project. Operation and Maintenance along with Asset Management Services of the Solar Plant will be supported by Scatec. Equity shared by Nizam Energy is up to 25%. The Scatec is sharing 75% of the equity by providing engineering, procurement, and construction. Scatec and its collaborative ally Nizam Energy are aiming to initiate construction in the mid of 2021.

Also, check out Waste to Energy Plants Can Curb Pakistan’s Electricity Crisis

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