US, Pakistan cooperate to increase private sector investment in clean energy US, Pakistan cooperate to increase private sector investment in clean energy

Islamabad: The United States government, through the U.S. Agency for International Development (USAID), and in collaboration with the Government of Pakistan, the United Nations Industrial Development Organization (UNIDO), and local partners, launched the Pakistan Private Sector Energy project Wednesday to increase private sector investment in clean energy. The project will support small and medium-scale energy activities throughout Pakistan to boost local and national economic growth.

The Pakistan Private Sector Energy project will encourage more private investment in the energy sector, with a focus on low-cost, renewable energy sources, which are critical to expanding economic growth. UNIDO will work with clean-energy project developers and private sector investors to access project financing.

“Sustainable, low-cost energy is a key ingredient in Pakistan’s economic development. Harnessing the power of private sector investment will generate economic growth and create new jobs,” said USAID Mission Director Julie Koenen.

“This new USAID-funded project will complement the Pakistani government’s efforts in facilitating a cleaner, cheaper, more climate friendly, and sustainable energy mix for Pakistan,” said Minister for Climate Change Malik Amin Aslam.

The Pakistan Private Sector Energy project continues USAID’s long-term partnership with the Government of Pakistan. Since 2010, USAID has partnered with the Government of Pakistan to add more than 3,900 megawatts to the national energy grid. These investments have benefitted more than 47 million Pakistanis, reduced costs for energy distribution companies by over $400 million, and leveraged more than $2.3 billion in private investment. USAID has also supported the construction of new transmission lines and substations to evacuate power from wind power projects to the national grid, as well as rehabilitated thermal and hydroelectric power plants.