The World Bank funded program looks to save over 180 GWh of electricity annually through solarization, retrofitting, and replacement of inefficient appliances.
By Muhammad Ali
ISLAMABAD: If all goes well, electricity consumers in Pakistan’s Punjab province will soon have access to loans to replace their old, inefficient appliances with modern ones, repayable in easy instalments along with their electricity bills – thanks to an ambitious provincial energy sector transformation program.
Projected to save 178.2 GWh of electricity annually, the Punjab Energy Efficiency and Conservation Project (PEECA) hopes to fetch USD 150 million in financing from the World Bank.
The prospective project is expected to make a substantial contribution to the ongoing energy crisis by improving energy efficiency in the province.
The project is comprised of six components including the replacement of inefficient household appliances (USD 50 million), solarization & retrofitting of Public Institutes in Punjab (USD 25 million), solarization of Agri Tube- wells (USD 20 million), solarization & Retrofitting of WASA system (USD 5 million), de-risking private sector Investment (USD45 million), awareness campaign & Capacity Building of PEECA (USD 5 million).
The PEECA will explore a number of options for implementation of this program during project appraisal, including bulk procurement of one million fans, and introducing on-bill financing whereby the consumer shall pay for 5 percent or 10 percent of the total amount of the procured appliance(s) up-front, and pay the rest through 10 to 18 monthly instalments reflected in their electricity bills.
Distribution centres would be established across Punjab for the distribution of fans to domestic consumers.
The estimated annual savings through replacement of one million conventional fans with efficient PEL fans will result in reduced annual demand of 178.2 GWh. Replacing these older fans with more efficient AC-DC fans would lead to an estimated reduction in load of 55 MW.
Following the replacement of fans, PEECA shall target other high impact appliances, such as inefficient light bulbs, water heaters, and air conditioners.
The household sector will be informed about benefits of the energy efficient fans as opposed to conventional fans through an awareness campaign. The consumers are expected to voluntarily procure these fans which will be available through provision of incentives.
PEECA will explore multiple options for encouraging the installation of these fans, which will be incorporated at the time of preparation of PC-I. The stance of DISCOs and NEPRA regarding on-bill financing will be considered upon their discretion, which then may be included into the PC-I. The instalment plan is subject to change, and will be finalized at the time of PC-I preparation.
After evaluation of the concept paper, the Planning Commission made certain observations that need to be addressed. The sponsors will be required to ensure compliance to Planning Commission’s Policy Guidelines for Concept Clearance (CC) Proposals, 2018, which allows CC only in case of urgency for exploring donor financing for specific projects.
Punjab has shown great appetite for energy sector improvement in recent month. The installation of solar PV systems is nearing completion at several government sites including 32 shelter homes & dar-ul-amaans, 12 model children homes (12), 20 public colleges, 9 darbars, and 3 jails, with an accumulative load of 6.9 MW.
PEECA is already conducting phase 2 of the World Bank funded Punjab Green Development Program which includes solarization & retrofitting of 36 DHQs, intended to save 25 GWh of electricity.
Phase I of the PGDP has successfully been completed which included retrofitting of inefficient appliances with energy efficient appliances, and has been verified by the World Bank’s consultant KPMG.
The public institutes considered for the prospective project include Social Welfare Department, Women Development Department, Daanish Schools, Child Protection & Welfare Bureau, Labour & Human Resource Department, and Management and Professional Development Department, among others.
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