Germany eyes investment in Sindh’s 350MW solar-wind hybrid project and Thar coal

A German delegation expressed interest in investing in the Sindh government's 350-megawatt (MW) solar-wind hybrid project and Thar coal during a meeting with Sindh Minister for Energy, Development, and Planning Syed Nasir Hussain Shah on Friday.

The discussion focused on investment opportunities in the province’s energy sector. According to the National Electric Power Regulatory Authority’s (Nepra) State of Industry Report 2023, only 12.5% of Sindh’s total 16,940MW power generation capacity comes from renewable energy.

The province’s fuel-based power capacity stands at 14,821MW, while renewable sources contribute 2,119MW, including 24MW from biogas, 250MW from solar, and 1,845MW from wind energy.

This development comes despite Pakistan’s commitments under the Paris Agreement, which include a 50% reduction in projected emissions by 2030 as part of its Nationally Determined Contributions (NDCs). To achieve this, Pakistan aims to generate 60% of its electricity from renewable sources, transition 30% of its vehicles to electric, and impose a complete ban on imported coal by 2030.

Meanwhile, Germany has set an even more ambitious goal, aiming to increase the share of renewables in its power consumption to at least 80% by 2030 under its own Paris Agreement commitments.

According to a press statement from the Sindh Energy Department, the minister briefed the delegation on Sindh’s energy projects and highlighted the province’s vast solar and wind energy potential, offering lucrative investment prospects.

He noted that domestic and foreign investors are increasingly interested in Sindh’s energy sector and actively engaging with the government. “The Sindh government is providing full support to investors, leading to a record surge in investment. Our investor-friendly policies have further strengthened trust and confidence in the government,” he said.

He informed the German delegation that Sindh’s 350-megawatt solar hybrid project would be the world’s second-largest of its kind. Sindh Energy Department Secretary Musaddiq Ahmed Khan provided a comprehensive briefing on the department’s ongoing and future projects.

Barrister Syed Shabbir Ahmed Shah and Mahfooz Ahmed Qazi, Project Director of the Sindh Solar Energy Project, also attended the meeting. The German delegation included CEO of Siemens Energy Middle East and America, Diemar Siers Dorfer, CFO of Siemens Energy Middle East & America, Daniela Schoeppner, and CFO of Siemens Energy Pakistan. Muhammad Rafi.

Shah also highlighted Thar coal’s viability for gasification, citing global experts who have deemed it highly suitable. “Thar coal offers excellent opportunities for profitable investment,” he added. The German delegation expressed interest in investing in the 350MW solar-wind hybrid project as well as Thar coal.