Promotion of renewable energies and grid connection

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The aim of the FC program is to contribute to the increased and efficient provision and use of electrical energy in Pakistan through investments in renewable energies, their connection, and energy efficiency. (FC module goal). Improving the electricity supply from renewable energies contributes to the fulfillment of Pakistan's national development goals (Pakistan Vision 2025), in particular to the country's economic growth and the basic supply of the population with modern and sustainable energy (overarching development policy goal). The FC program is divided into at least two components and an accompanying measure to support the sponsor. Component 1 includes investments in the construction of the Gharo substation in southern Sindh, component 2 includes investments in the construction of the Chakwal substation in Punjab. Other components will be examined in the course of the program. The target group is Pakistan's electricity consumers. The borrower is the Pakistani state, represented by the Ministry of Finance. The project sponsor is the state transmission company National Transmission and Despatch Company Ltd. (NTDC) and, if necessary, other state institutions in the energy sector. The costs of the FC programme are currently estimated at around EUR 77.4 million, which are to be financed through FC loans on IDA terms, NTDCs’ own funds and an FC grant.