Solar power plant contributes to a cleaner energy mix in Pakistan
With NOK 40 million in funding, Scatec has installed a solar power plant in Sukkur, Pakistan. The power plant will contribute to providing Pakistan with more clean and renewable energy.
The new solar power plant in Sukkur, with a capacity of 150 MW (megawatt hours), was completed in January 2024. The power plant will meet the energy needs of around 150,000 households, while also contributing to local value creation.
“Through the judicious allocation of aid funding, we can facilitate more investments in renewable energy, of which this project is a prime example. Here, we are contributing to a cleaner energy mix and fewer greenhouse gas emissions,” says Mina Weydahl, Head of Energy at Norad.
Scatec received funding through Norad’s enterprise development scheme. The purpose of the grant was to reduce financing costs and increase the profitability of the project. The Norwegian embassy in Pakistan has also been an important advisor in the project.
Scatec optimised the project design to minimise social and environmental impacts within the land area provided by the authorities, but the work on the power plant meant that 83 households had to move out of the area for it to be built.
This entailed a longer consultation process in order to understand the needs and preferences of the local community, discuss options and reach a mutual agreement for affected households. The household relocation process was completed in full compliance with the “IFC Performance Standards on Environmental and Social Sustainability”.
An external audit of the project confirmed improved living conditions for the households that had to relocate and particularly positive results when it came to strengthening women’s role in society. All women were given joint title deeds of land ownership with men – none of them had any formal land ownership rights previously. The project has also opened the door to the possibility of establishing new homes and more job opportunities for the local population.