As the country moves toward renewable energy technologies, the Pakistan government has approved 2000 megawatts of solar power projects in the public sector.
Prime Minister Shehbaz Sharif has approved in principle solar energy construction projects to reduce the country’s massive import bill and reliance on non-renewable energy resources by generating low-cost and environmentally friendly electricity. PM Shehbaz stated that the projects would significantly reduce the country’s reliance on power projects that use expensive fuels, putting a strain on the country’s foreign exchange reserves.
National solar energy initiative
The 2000 MW projects are part of the National Solar Energy Initiative, which aims to generate 10.000 MW of renewable energy in the coming months.
In the first phase, solar energy would be supplied to government buildings, tube wells powered by electricity and diesel, and low-consumption domestic consumers. Under the project, the prime minister stated that agricultural tube wells would be converted to solar power as soon as possible. Solar power projects would also aid in the resolution of issues such as line outages, power theft, and circular debt. The solar energy initiative would aid in the conversion of government buildings and tube wells from diesel to solar power. PM Sharif has directed that solar plants be installed as soon as possible before the next summer season.
Cabinet ministers and advisers also discussed the outcome of the solar energy investors’ conference held in mid-September, which was attended by local and international investor companies from Saudi Arabia, the United Arab Emirates, China, and Qatar.
Dimension Renewable Energy (Dimension), a leading turnkey provider of community solar solutions, announced the closing of a $237 million financing to support the construction of a 120-MWdc distributed generation portfolio comprising 28 solar projects across New York, Virginia, New Jersey and California.
These projects will supply solar energy to more than 12,000 local residential and commercial customers, among which over half of the capacity is targeted to serve low- and moderate-income (LMI) households.
Silicon Valley Bank (SVB), a division of First Citizens Bank, acted as lead debt syndicator for this deal, with NT Solar and Advantage Capital arranging the tax equity.
“We are pleased to partner with leading solar lenders and tax equity institutions as we accelerate the growth of community solar across the United States,” said Rafael Dobrzynski, Co-Founder and CEO of Dimension Renewable Energy.
“Our strong capital position demonstrates Dimension’s leadership in building the country’s leading community solar IPP, as we lead the way in making the benefits of solar energy accessible to all.”
SVB has extensive expertise in community solar financing. Bret Turner, Head of Project Finance Business Development and Innovation for Silicon Valley Bank, said, “We are thrilled to have led and structured Dimension’s inaugural project financing for this important portfolio of community solar projects for the company.”
“Silicon Valley Bank is excited to support Dimension as they help to make clean energy affordable, accessible, equitable and flexible for residents and businesses.”
Dimension is a portfolio company of Partners Group, a leading global private markets firm. Dimension fits within Partners Group’s global, strategic focus on investments within the decarbonization sector.
CohnReznick Capital acted as the exclusive financial advisor to Dimension. Stoel Rives acted as counsel for Dimension and Milbank acted as counsel for SVB and lenders.