LAHORE: The Punjab government on Tuesday signed a 15 million euros grant agreement with the German Development Bank, KfW, to promote solar energy across the province.
Under the agreement, several government institutions will be converted to solar power as part of the province’s renewable energy expansion efforts.
A delegation from KfW met with Punjab’s Provincial Minister for Energy Malik Faisal Ayub Khokhar, to discuss renewable energy initiatives in Punjab, particularly the promotion of solar energy. On the occasion, Secretary Energy Dr Farrukh Naveed and KfW Director Sebastian Jacobi formally signed the agreement.
According to the agreement, the grant of 15 million euros will support solarisation projects across various public-sector institutions in Punjab. As part of the initiative, 24 teaching and tertiary care hospitals and six Danish Schools will be shifted to solar energy.
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The project is expected to generate a total of 21.119 megawatts of solar power.
The Punjab Energy department officials estimate that the initiative will save the provincial government approximately Rs 1.5 billion annually, while also contributing significantly to environmentally sustainable and clean energy solutions.
Speaking at the agreement signing ceremony, Provincial Energy Minister Malik Faisal Ayub Khokhar said that under the leadership of the chief minister of Punjab, the province is leading other provinces in development projects, transparency, and law and order.
He pointed out that providing affordable and reliable electricity to the public remains one of the Punjab government’s top priorities.
He added that the chief minister regularly chairs meetings to accelerate public welfare projects and ensure the swift implementation of energy initiatives.
The minister expressed the hope that similar agreements in the future would further promote renewable energy projects in Punjab and help deliver better facilities to the public.
The KfW delegation appreciated the Punjab government’s governance and transparent policies. The delegation also assured continued cooperation and funding for development projects in the province.
Additional Secretary Energy Majid Iqbal, CEO PECA Abdul Rehman, and other officials were also present at the ceremony.
Copyright Business Recorder, 2026
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