France Provide Pakistan 46 Million Euros for Energy Efficiency

FRANCE announced on Friday that it is providing a 46 million Euros loan to Pakistan for energy saving and rehabilitating a power plant to promote energy efficiency and enhance Pakistan’s supply against the backdrop of electricity outages that have been plaguing the country.

Secretary Economic Affairs Division (EAD), Sibtain Fazal Halim, said the loan was part of a $980 million Pakistan Energy Investment Programme. He said France will provide $200 million for the programme while the remaining will be lent by the Asian Development Bank.

The project is forecast to lead to a reduction in peak demand of 1,100 MW, saving Pakistan 1,315 million Euros in investment that would have been needed to meet the demand. This reduction in peak demand will lead to an annual reduction of electricity consumption of approximately 2,310 GWh.

The expected fall in energy consumption will not only lower energy bills, but will also lead to a reduction in green house gas emissions of 1 million tonnes of carbon dioxide (CO2) per year, allowing Pakistan to benefit from 21.2 million Euros worth of carbon credits spread over eight-years.

The programme has been launched by the Government to help tackle the present energy crisis and prevent future calamities.

The overall cost of the project is estimated at 61 million Euros, of which 20 million is financed by French Development Agency (AFD).

The rehabilitation of the Jabban power plant in the Khyber Pakhtunkhwa province had already been approved and is to be followed by other projects aiming at addressing Pakistan’s energy crisis.

Despite tackling Pakistan’s current energy problems a longer term challenge is being addressed. The programme will be completed in six parts including energy efficiency improvement in public buildings and lighting, energy efficiency in the industrial sector and replacement of inefficient devices.

Photo by Shubert Ciencia

Saturday 10th July 2010


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