With the aid of a German grant worth 9.8 million euros, the provincial governments of Punjab and Khyber Pakhtunkhwa will create four excellence hubs for renewable energy.
With the aid of a German grant worth 9.8 million euros, the provincial governments of Punjab and Khyber Pakhtunkhwa will create four excellence hubs for renewable energy.
In order to establish four excellence hubs for renewable energy, the KfW Development Bank (Kreditanstalt für Wiederaufbau), a German institution, has agreed to sanction a grant totaling 9.8 million euros, of which two hubs will be established in the PTEVTA institutions of Punjab and two in KP TEVTA.
One excellence hub in each of the Punjab province’s Lahore and District Rawalpindi will be built at a cost of Rs. 1117.403 million.
According to the documents, the project will receive Rs 844.345 million in foreign funding, while Rs 273.058 million will come from the local ADP of Punjab.
With regard to the issues with supply and demand in the energy sector, this project aims to introduce two excellence hubs for renewable energy.
In the KfW Development Bank’s Jan. 2022 feasibility report, renewable energy hubs are suggested to be built on the grounds of two TEVTA Institutes, the Govt. College of Technology (GCT), Taxila, and the Govt. Apparenticship Training Center (GATC), Township, Lahore, as service centres that are similar to the service centres that are already in place in Punjab.
An excellence hub’s main job is to ensure that the market has access to skilled labour by providing technical training in renewable energy along with promotion of the industry, which includes company counselling, equipment and machinery testing, start-up assistance, and information sharing.
The feasibility study also makes clear that the local government of Punjab is responsible for the construction upgrades and OPEX for hubs, while the KFW Development Bank is in charge of paying for the Civil & Revenue Components of the scheme.
According to the documents explaining the background of the creation of two hubs, renewable energy currently makes up only 5% to 6% of Pakistan’s national grid’s overall electric generation, which is a small portion of the total amount needed.
Renewable energy is a dependable source and will be most useful, especially for remote small towns and villages where it is impossible to supply electricity from other sources. While the shares of wind and solar PV are increasing very slowly, there is significant potential for the production of renewable energy.
Therefore, it is imperative to look into new directions for renewable energy. Regarding the provision of financial support for the establishment of renewable energy hubs in PTEVTA institutions, PTEVTA began negotiations with the KfW Development Bank.
The consultant hired by the KfW Development Bank in Germany through a competitive bidding process, carried out a comprehensive feasibility study.
These consultants produced a feasibility report after conducting a thorough feasibility study for the creation of RE hubs. Two excellence hubs will be established in Punjab, per the feasibility study.
The main goals and focus are to advance local RE market development along the value chain, promote RE and RE-based energy supply solutions for industrial, commercial, and domestic consumers, and ultimately aid in the expansion of the RE market and businesses.