Islamabad, 03 Dec 2023: Mr. Shah Jahan Mirza, the Managing Director of the Private Power and Infrastructure Board (PPIB), engaged in a productive discussion with the Renewable Energy for Low Income Countries (RELP) team at the International Renewable Energy Agency (IRENA) forum. The focus of the discussion was on developing a credit enhancement guarantee mechanism to boost Pakistan’s renewable energy sector.

According to Private Power and Infrastructure Board, the RELP team, with the support of the World Bank, Asian Development Bank (ADB), and other multilateral development banks (MDBs) and international financial institutions (IFIs), is working on developing this mechanism. This initiative aims to reduce the cost of financing for renewable energy projects in Pakistan, thereby increasing confidence among lenders and investors in the Electricity Purchase Agreements (EPA) payment structure.

Once implemented, this credit enhancement guarantee mechanism is expected to be an effective tool in achieving Pakistan’s ambitious targets for integrating a significant amount of renewable energy into its energy mix. The mechanism is poised to play a critical role in the nation’s transition to sustainable and clean energy sources, aligning with global environmental goals and economic development objectives.