• Energy dept signs three framework agreements
• Solar panel with battery, one DC fan and three LED bulbs to cost Rs55,000
• Households selected through BISP to pay Rs6,000 each

KARACHI: The Sindh government is set to bear 80 per cent cost of as many as 200,000 ‘solar home systems’ (SHS) to be provided to low-income households across the province.

The government on Saturday entered into framework agreements with three firms to provide each of the 200,000 families with a solar panel, battery, one DC fan, three LED bulbs and a mobile phone charging facility with an estimated cost of Rs55,000.

The solar panels and kits would be provided to eligible low-income families at around 80 per cent subsidy. The families, who will be selected through Benazir Income Support Program, have to pay Rs6,000 each for the SHS.

This was announced by Sindh Chief Minister Murad Ali Shah at the signing ceremony of the framework agreements with M/s Bboxx Ltd, UK; M/s Shenzen LEMI Technology Development Co. Ltd, China and M/s D.light Design Ltd, USA at CM House.

The chief minister said that by the end of October first batch of 50,000 SHS kits would reach Karachi for onward distribution.

The provincial government on July 19 decided to provide free-of-cost electricity to consumers living off-grid and those using 100 units per month through the World Bank-sponsored $100 million Sindh Solar Energy Project (SSEP) after the chief minister was informed that there were 2.6 million off-grid households and nearly two million households using 100 units per month in the province.

According to a statement issued from CM House, the ceremony at CM House was attended among others by Energy Minister Syed Nasir Shah, principal secretary to CM Agha Wasif, energy secretary Musaddiq Khan and representatives of three private companies selected through competitive process.

Murad Shah said that the Sindh Solar Energy Project (SSEP) was being executed for Rs27.4 billion with the $100 million ‘financial support’ of the World Bank.

He said that the Solar Home Systems would consist of an 80-100 W Solar PV Plate and a minimum 18 AH Lithium-ion battery, one DC fan, three LED bulbs and a mobile phone charging facility. The SHS set was shown to the CM which he approved.

The chief minister disclosed that the system’s estimated cost was around Rs55,000, including transport, taxes and duties and would be provided to eligible low-income families at around 80 per cent subsidy.

He said that the implementation strategy was being changed with the Bulk Procurement Model through international bidding in the light of World Bank procurement guidelines.

“The beneficiaries will be charged a small amount of Rs6,000,” he added.

Murad Shah said that the program was started in 2020, but the amount of subsidy was 40 per cent and the poor people were unable to pay the 60 per cent costs. He added that under the old program only 322 systems were sold. “Now, with the support of the WB, the subsidy amount has been increased up to 80 per cent but the program was delayed due to the devastating floods in 2022 and Covid-19 pandemic.”

Mr Shah said that the project strategy was revised with an increase in subsidy and the “Bulk Procurement Model” was adopted.

He added that in the original project, 10 districts were selected, but under the revised program all 30 districts, including seven districts of Karachi had been included.

The energy minister said that in the bidding process, 18 local and international firms had participated, and of them, three firms had qualified for signing of framework agreements.

He said that NGOs working under the Sindh Peoples Housing Foundation Project (SPHF) had been contracted under the WB Direct Contracting Method, which would be responsible for collecting SHS from appointed warehouses, distribution, installation and replacement service.

Published in Dawn, August 4th, 2024