Supporting Mechanisms for Promoting Distributed Generation (Net Metering, Wheeling, Banking etc.) in Pakistan to put 3 GW Alternative and Renewable Energy (ARE) Projects in next 7 years.

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    Sector Energy
    Focus area Renewable energy (unspecified)
    Type of action Not known
    Scope National
    Stage Under development
    Submitted to UNFCCC registry Yes
    Start of initiative 2015
    Financing and support details
    Financing status Seeking financing
    Total cost EUR 14.560 mln
    Financing requested EUR 5.943 mln
    Financing received to-date EUR 0 mln
    Principal source of financing Multilateral
    Principal type of financing Grant
    Capacity building required Yes
    Technology transfer required Yes
    Additional information
    Proponent(s) Alternative Energy Development Board
    International funder(s)
    (no data)
    Organization providing technical support
    (no data)
    Contact Mr. Irfan Yousuf, Alternative Energy Development Board,

    Sajjad Haider Yaldram, Climate Change Division, Cabinet Secretariat, Govt of Pakistan,


    This NAMA Support project will enable in establishing a conducive environment for development of Alternative and Renewable Energy (ARE) Distributed Generation options in the country. The overall objective of this NAMA Support document is to establish a regulatory regime that would help in developing the ARE DG options in the country.

    Activities: (2015 - 2022)
    The NAMA promotes the development of renewable energy projects in the near and long term by addressing a number of existing technical and financial barriers. It seeks to establish a Financial Mechanism to enable Pakistani commercial banks to enter the DG RE market, while a Risk Sharing Facility (RSF) will offer a guarantee for losses incurred for non-performing loans under the programme. It also seeks to establish RE technology certification and a vendor accreditation programme to reduce the perceived risks by financial institutions and end-users.

    The ARE power projects would be developed all over the country. This would (i) relieve the burden over the north-to-south supply side (ii) reduce technical line losses at distribution level (iii) enable the grid operators to serve their clients through nearby installed power plants.

    Capacity development, awareness raising and training of stakeholders are major components of this NAMA Support project. This will help in building capacity, human resource development, clarifying the risk perceptions and addressing technical and financial constraints.

    • Development of Legislative document, SoPs, Policy Guidelines for Distributed Generation options.
    • Taking step towards establishing financing mechanism for Distributed Generation options.
    • Relevant quarters will be attracted through workshops, seminars and Business to Business (B2B) meetings in this regard.
    • Establishing a Guarantee Fund for attracting commercial banks to finance the ARE DG options at consumer end level.

    Impact and MRV

    No Data Available.png
    Cumulative GHG reductions: No data available
    Mitigative capacity:

    No information has been provided on mitigative capacity


    Social: Availability of power would also enable social uplift of the people residing in remote parts of the country. Human resource development, its capacity building and orientation towards latest models, techniques and trends are other benefits.
    Economic: Availability of power would result in meeting electricity demand. This would add to the economic benefit of the country. The development of 3 GW through DG applications can help in reducing fossil fuel import bill approximately US $ 1 billion per year.The project will result in establishing a Guarantee Support fund of US$ 5 million that would be used to help the financing sector to finance the end customers through soft financing schemes for installing ARE Distributed Generation generators to cover initial higher capital cost for installing these systems.
    Environmental: Information has not been provided

    MRV Framework:
    No MRV plan has been defined