In the presence of the Prime Ministers of both Pakistan and Norway, Scatec Solar (SSO) signed a deal in July in Oslo with the local Nizam Energy to develop 150 MW of solar power in the Sindh province. SSO is an integrated Independent Power Producer (IPP) dedicated to solar PV, with a global footprint in Europe, Africa, Latin America, Middle East and the United States. In the countries it operates, SSO is a long term player, developing, financing, building, operating and maintaining solar plants for 20 years.
Unlike fossil fuel fired power plants, a PV plant can be commissioned in six months to a year depending on the size, thereby quickly adding to the nation’s generation capacity, Pilskog pointed out. PV is a natural part of the Pakistan’s energy mix as the nation is blessed with much sunshine. Utilizing solar irradiation would avoid import of expensive diesel and oil in generating power, saving costs as well as millions of dollars in precious foreign exchange. In addition, solar energy is safe, clean, noiseless and non-polluting.
Pilskog highlighted several factors that contributed to making Pakistan an attractive market for solar power generation: the nation has had a working IPP regulation for many years, which “gives comfort that stable and predictable regulations will satisfy standards of international investors and financing institutions”. Further, the tariff has been established on an elaborate and quite transparent methodology. “It implies that there is a well thought through and hopefully robust, long-term vision behind the tariff strategy” he said. SSO, which is working with Development Finance Institutions such as World Bank’s IFC for project finance in other countries, is discovering that they are keen to partner with SSO to finance solar PV projects in Pakistan in light of experience from other sectors as well as the new regulations that are in place, he added.
About Scatec Solar
Scatec Solar is an integrated independent power producer, aiming to make solar a sustainable and affordable source of energy worldwide. Scatec Solar develops, builds, owns and operates solar power plants and delivers power from 220 MW in the Czech Republic, South Africa and Rwanda. The company is in strong growth and has 207 MW under construction in the US, Honduras and Jordan as well as a solid pipeline of projects under development in Africa, Middle East, Americas and Asia. Scatec Solar is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SSO’.