Government O'f Sindh Energy Department
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GOVERNMENT O'F SINDH Directo·rate of Alternative E,nergy ENERGY DEPARTMENT Modified PC-I SINDH SOLAR ENERGY PROJECT (SSEP) Financed by the World Bank 96.67% and Government of Slndh 3.43% January, 2011 GOVERNMENT OF SINDH PLANNiNG & DEVELOPMENT DEPARTMENT ~1 FORM\ (INFRASTRUCTURE SECTORS) ENERGY {FUEL & POWER} \1... Name of Project: Sindh Solar Energy Project (SSEP) fi-nanced- by--·the I World Bank 96.57% and Government of Sindh 3.43% I - \ 2. \ Location: I. Utility-Scale Solar: Initially 50 MW project at I I Manjhand near Khanot Grid Station, Taluka I Manjhand, District Jamshoro (GPS coordinates for site outline 25768176°N, 68.264433°E; 25.758516°N, 68.264881°E; 25.758580oN, 68.273965°E; & 25.76800rN, 68 27404rE) will \ be developed by development of Solar Parks at locations to be identified through a comprehensive \ geospatial and grid capacity analysis. (Copies of Availability of Land and Minutes of Committee of Experts regarding allocation of 250 acres of land for 50 MW Solar Power Project at Manjhand are at Annexure A. 2. Distributed Solar: Public sector buildings \ (schools, hospitals & administrative buildings) in Karachi, Hyderabad, and in other districts Sites shall have detailed structural surveys carried out before being included in the Project, hence actual buildings will be identified and selected during project execution 3. SoJar Home Systems: Targeting areas with low or no electricity access in Sindh, prioritized according to two criteria: (i) Those with a high number of villages without grid electricity (no nearby transformer/distribution network); (ii) Those with a high number of villages with grid electricity but with low levels of reported electricity access i e high loss areas (Detailed In PAD at ! Annexure B) 4. Technical Assistance & Capacity Building: lrnplernentation support to Energy Department, Government of Sindh and other relevant entities -- - - -_ ..._-._,--, --._---._-. __ .-_ --.- b. Execution: Directorate of Alternative Energy --".-'-----.,,-.~ .-_------ c. - ----------_.._--_. ---.- ----'---~---- Operation and 1. Utility Scale Solar. The Solar Park-- --- O&M------._---- is---- Maintenance: responsibility of Energy Department, Government I of Sindh (via SPV); Solar Power Plant O&M is responsibility of qualified IPPs. 2. Distributed Solar. Solar power developer(s) responsible for O&M under long-term performance• based contract. 3. Solar Home Systems Contractors responsible for all O&M under contract .----.- ._- ._._-_._- d. -- - .._------ ---------------------- Concerned Federal Ministry of Energy (Power Division) and its allied agencies i.e. NT.DC,AEDB, CPPA-G. Ministry: _-__ .._----._--. ------ .. _---------------_ .._ 4. Plan Provision: ----------_ ... -----------. a. --.-- - If the project is Project reflected at Sr. No. 609 in ADP- 2017-----, ..._---- -- ._ 18--._-.----_-"---,,,--- included in the Estimated cost of the project is US$105 million, of which the World Bank share is $100 million, and Government medium term/five• of Sindh share is $5 million. year plan, specify actual allocation: Allocation for the year 2017 - 18 is RS.580 Million. b. If not included in N/A the current Plan, how is it now proposed to be accommodated? I -- - - -.•_-_- ---,_, .,J --- ..._----- --_._------_ .. ---._._---_ ..._---_._.- - c. If the project is N/A - -- ....._--...._ ..__ ._-------._-----,,--_.._._--._--_._.- proposed to be financed out of block provision for a program, indicate: --_._ .._.-._- ... _-------------_ ......_--_ .. _------------- 5. Project Objectives, ,,_.-_ .._--------------_ .._._----- ._- Description, Justification, Technical Parameters And Technology Transfer Aspects: a. Project Objectives The Development Objective is to increase solar power generation and access green energy in Sindh Province. b. - "._-- ------------_ .._-_._-- ._- --- . _.- .. _. ---'-- - .._ - -- ._.-.- ..._ .. _--_._--_._._---_ .._- Project The Program Development Objective is to support the Description: scale-up of solar power in Sindh Province and increase access to electricity. Further details of the project are at Annexure C. The Project was considered in PRE-CDWP meeting on 17.4 2018 (minutes of the meeting are at Annexure 01) and in light of the decisions of PRE-CDWP the para wise replies on the observations raised in the working paper of the meeting was submitted on 254.2018 (Annexure 02) and feasibility studies were submitted on 22.5.2018 Annexure 03 & softcopies of Feasibility study reports of 50 MW Solar PV Power Project are attached as CD) The Project was then considered in CDWP on 2.5.2018 in which a Review Committee was constituted under Member (Energy) to address the highlighted issues of power evacuation, project design and feasibility studies (minutes at Annexure 04) 3 .----~--~.---.-,,------.~------.----.---.-.-.<---.---- ..---.~----.---"---'-._"-,",- The Reviewmeetingwas held on 1552:~~-Wh~:1 stakeholders including HESCO, SEPCO, CPPArea~~ I AEDB reached consensus to support the project Subject to compliance with the prevalent framework for approval of solar power project in the country (minutes at I Annexure D5) 2nd Meeting of CDWP was held on 24.5 2018 where the i project was recommended at a total cost of Rs.11440.21 Million including FEC of Rs-6545.00 Million for consideration of the ECNEC (Minutes at Annexure 06) The ECNEC in its meeting held on 14 11.2018 approved the project at an updated cost of Rs 12,84811 Million including FEC of Rs 7,952 90 Million (1US$ = Rs 124.08) (minutes at Annexure 07) ... -.- -----.---~.-.---------,------- b. Project 27% of the population do not have access to electricity Justification: (Report on National Action Plan Sustainable Energy for All, January 2018 by UNDP and Ministry of Planning Development & Reform, Govt of Pakistan). Resulting in poor socio-economic conditions and unavailability of health and education facilities. There is a strong justification for scaling up solar power in Sindh specially in remote areas where the cost of grid infrastructure is high and uneconomical Due to recent international cost reductions in solar the deployment of solar PV systems is more feasible_ The project will improve energy security, and fulfil Pakistan's international commitments on climate change Furthermore, net metering facility will ---------------,-------_._---- -------_.- ---- -- --_. __ ._---------- provide a relief to the overloaded urban grid systemsl through roof top solar program. Further details are at Annexure E. c. Technical In Sindh, annual average Global Tilted Irradiance (GTI) Parameters: ranges from around 5.7 to 6.4 kWhr/m2/day (source: Global Solar Atlas). As a result of this excellent solar potential, solar power can be a least cost form of electricity generation, especially when project development risks arc:; reduced through Solar Parks. Further details are at Annexure F. - ~-~- _,-----_--_._ ... This project will lead to introduction of new technologies d. Technology and business models to Pakistan, including state of the Transfer Aspect: art solar power and plant control systems under Components 1 and 2, and Solar Home Systems (SHS) that meet the needs of populations in remote areas under Component 3_ There will be substantial opportunities for technology transfer through joint ventures with local entrepreneurs. There will also be direct job opportunities created under the Project, a large percentage of which will be permanent new jobs in the renewable energy sector. This will increase the socio-economic development opportunities to the dwellers of remote areas. The project also includes a substantial capacity building program, including training for project staff and other stakeholders The World Bank has also secured grant funds for technical assistance activities at the national level, including training and study tours of Directorate of Alternative Energy, Energy Department, Planning & Development Department, Government of S~~d~ a~~_1 5 --.._ -_.._._-- --- ...-~.--'.-."------,------ ..... -.....- ......... " .. _'----_.~._...._--"'. ._ -_ ---_,_-. --~_----"---"--"~"---'---..----.. '._- ~ .....-... -_ .. other key agencies such as AEDB,-CPPA-G, Minfstry-C;f Energy, NTDC, and Planning Commission. e. Inputs and Outputs InputS:-(Ts·$10-5mili(onshali-be committed to the Project, of the Project: of which $95 million shall be for the investment components (Component 1-3), $5m for capacity building and technical assistance (Component 4), and $5 million for establishment of PMU staffing and other costs (Administrative Budget). Of the total budget of $105 million, the World Bank shall provide $100 million in the, form of concessional loan financing (covering. Components 1-4), and Government of Sindh shall provide $5 million (to cover the PMU costs). The World Bank has also secured grant funds for technical assistance, which will be in addition to the project cost. Outputs: I. Development of Solar Parks to support private sector investment under IPP mode, and launching. of Pakistan's first competitive bidding for solar power production, starting with an initial 50 MW pilot solar auction (under NEPRA framework) at a site near Manjhand, district Jamshoro II. Development of 20 MW of solar power on and around public buildings in Sindh province using competitively-awarded EPC contract and O&M. iii. Provision of Solar Home Systems to at least 200,000 households in Sindh (1.2 million people), by providing grants to households. IV. Capacity building and technical assistance activities to support the design implementation of \ "',,-- -- --_.- .. the program