Hunza's First Public-Private Partnership for Solar Power Development

Strategic Insights -

A groundbreaking project in Hunza district, Gilgit-Baltistan, has marked a significant milestone in Pakistan's renewable energy sector. NPAK Energy Limited, a subsidiary of the Industrial Promotion Services (IPS), has commissioned a 1MW solar photovoltaic power plant (SPP) with 600kWh battery storage, making it the first public-private partnership (PPP) in the region. This innovative project will generate 1,600 MWh of electricity per year, power local households and businesses, and mitigate climate change by avoiding approximately 1,134 metric tons of CO2 equivalent annually.

Key Takeaways:

  • The 1MW SPP is the first public-private partnership (PPP) in Gilgit-Baltistan, demonstrating a commitment to clean energy and sustainable development.
  • The project was commissioned by NPAK Energy Limited, a subsidiary of Industrial Promotion Services (IPS), under the Aga Khan Fund for Economic Development (AKFED).
  • The 2,376 photovoltaic panels, installed at an altitude of 2,800 meters above sea level, will produce 1,600 MWh of electricity per year, addressing Hunza district's acute energy deficit.
  • The estimated carbon offset is approximately 1,134 metric tons of CO2 equivalent annually, making it an effective solution for mitigating climate change.
  • The project was financed and implemented by NPAK Energy, which signed a 30-year Concession Agreement with the Government of Gilgit-Baltistan to develop a self-sustaining supply of clean, reliable, and affordable electricity.
  • Mansoor Dhanani, CEO NPAK Energy Limited, emphasized the company's commitment to rural electrification and sustainable energy development in the region.
  • The project leverages a blended finance investment vehicle, incorporating equity, sustainable debt, and grant financing, to strengthen public service delivery and create economic opportunities.
  • This innovative PPP solution aims to replicate across other districts in Gilgit-Baltistan, promoting sustainable development and social progress.

Statistics:

  • 1MW solar photovoltaic power plant (SPP) commissioned in Hunza district, Gilgit-Baltistan.
  • 2,376 photovoltaic panels installed at an altitude of 2,800 meters above sea level.
  • 1,600 MWh of electricity generated per year.
  • Approximately 1,134 metric tons of CO2 equivalent emissions avoided annually.
  • 30-year Concession Agreement between NPAK Energy and the Government of Gilgit-Baltistan.
  • Inauguration ceremony attended by Honourable Haji Gulbar Khan, Chief Minister of Gilgit-Baltistan, and other senior political and community leaders.

Sources:

  • Press release by NPAK Energy Limited.
  • Remarks by Honourable Haji Gulbar Khan, Chief Minister of Gilgit-Baltistan.
  • Interview with Mansoor Dhanani, CEO NPAK Energy Limited.