Khizer F. Omer, Country Programme Manager, CDKN Asia, writes about CDKN’s renewable energy-based industrial solutions and the way forward for a beleaguered industrial sector.

The province of Punjab’s has the fastest growing provincial economy in Pakistan; it is the most industrialized province in the country, contributing close to 58% of the country’s overall industrial production, of which 90% of the total production is through SMEs (Small and Medium-sized Enterprises). Since 2007, however, SMEs are struggling to cope, as there has been a sharp decline in Punjab’s industrial growth primarily due to the shortage of electricity.

In an effort to offset the challenges facing SMEs, CDKN is supporting the Federal Ministry of Climate Change in evaluating the NAMA approach to renewable energy solutions using Punjab Industrial and Sialkot Industries, seen as the most progressive in the country, as test cases. This project aims to conduct an initial assessment to evaluate the scope for renewable energy solutions to meet the energy shortages in the SME industrial sector of Sialkot and the potential role of a Nationally Appropriate Mitigation Actions (NAMA) as a policy tool. This project is expected to build understanding around the viability of renewable energy-based industrial solutions for SMEs operating in Sialkot, particularly as how such interventions may support industrial development and energy sustainability, given the energy crisis in the country.

Another aim is to enhance understanding of the public and private sectors in Punjab regarding the potential role of renewable energy-based solutions in meeting industrial energy needs; and while doing so, deliver mitigation and adaptation co-benefits, such as job creation, energy efficiency and environmental protection, etc. A definitive in Pakistan at the sub-national level!

The key project activities and deliverable include a stakeholder mapping and partnership building strategy, a policy analysis describing the policy environment governing industrial energy and renewable energy development in Pakistan, especially in the Sialkot context, a technical report detailing results of the scoping research undertaken to identify and assess options for NAMA development in Sialkot’s industrial energy sector, policy briefs and at least one blog for the CDKN website.

With the project kick-off meeting held in early February, background documentation of the project is in progress, with stakeholder engagement and technical assessment of renewable energy opportunities and options for Sialkot’s industrial sector activity commencing shortly.

The project is being delivered by a supplier consortium of Ecofys, UK and PITCO Pakistan.

Image Courtesy: Tribune