The Pakistan Private Sector Energy Project (PPSE)

Supporting small and medium-sized enterprises (SMEs) in Pakistan

Launched officially in February 2021, the Pakistan Private Sector Energy Project (PPSE) focuses on expanding the portfolio of commercially-viable clean energy projects in Pakistan and providing support to enable them to access financing and reach financial close.

Supported by USAID, the project targets small and medium-sized enterprises (SMEs) in Pakistan, including those located in industrial zones, while also addressing the needs of isolated communities through off-grid solutions.

Eligibility criteria

PFAN is technology neutral, which means we do not prefer any technology over any other.

Proposals should demonstrate that the project is commercially and technically viable and requires no or only minimal grant funding. If your project currently receives grant funding or has done so in the past, that does not affect eligibility. For more information about the selection and scoring criteria used by PFAN, please click here.

Projects on clean energy and from all administrative units in Pakistan are eligible to receive PFAN’s support. However, preference will be given to the following market segments:

  • Captive, off-grid, distributed generation with B2B PPAs (“behind the meter”) using  solar and different generation sources,
  • Biomass W2E (bagasse) from sugarcane and biogas in the broader dairy industry
  • Mini- and microgrid establishment and operation and SHS distribution models (DESCO / PAYG) in remote and rural areas
  • Electric mobility

Investment amount

The investment amount, or investment ask, should lie between US$1 million and US$50 million. This may be disbursed in smaller tranches as requested.

ONLY for energy access and rural electrification projects (clean cook stoves, solar home systems, minigrids) an exception is made, and the investment ask can lie between US$500,000 and US$50 million. This too may be disbursed in smaller tranches as requested.

Exclusion criteria

PFAN will not be able to support projects in the following sectors, notwithstanding their climate benefits:​

  • Nuclear origin ​
  • Carbon capture and storage​
  • Combustion of fossil fuels​
  • Waste incineration ​
  • Gas venting and flaring​

Furthermore, PFAN will not support projects that​:

  • Are likely to infringe on the protection of critical habitats​
  • Use banned pesticides and/or chemicals​
  • Cause involuntary resettlement or physical economic displacement ​
  • Are likely to alter, damage, or remove any cultural heritage and/or sites​
  • Use forced, trafficked, or child labour​

Application process

If you are a SME with a great and innovative project idea to be implemented in Pakistan and you comply with the eligibility criteria, apply for PFAN’s support. Selected PFAN projects undergo intensive one-on-one coaching to perfect their business plans, financial structures and investment pitches. Applications are accepted on a continuous basis, and you may submit your application at any time; they are evaluated on a quarterly basis after the regularly announced deadlines. If you submit just after the deadline for the next evaluation round, it may take up to three months before your application is evaluated.

Click here to apply for PFAN support in Pakistan

The application consists of an online form and three documents:

  • Project proposal
  • Financial model
  • Executive summary

For further information on the application process, please, follow this link.

To start your application, click here.

PFAN SME Accelerator in Pakistan

The PFAN SME Accelerator in Pakistan is a unique opportunity to receive advanced entrepreneurship training, business coaching and customized support from international and local clean energy experts. The accelerator program is delivered by the Network for Global Innovation (NGIN), an international organization with experience and demonstrated success supporting thousands of clean energy entrepreneurs in over 22 countries, including Pakistan.

The 4-month accelerator program provides intensive online training and group mentoring followed by 6 months of tailored support to suit company-specific needs and 1:1 advice from clean energy experts. Accelerator graduates with the greatest potential will be eligible for international investment facilitation support from PFAN.

Since 2006, PFAN has leveraged over $2Bn of investment for 155 clean energy projects and ventures.

Click here to apply for PFAN SME Accelerator in Pakistan.


For more information please contact the PPSE team 

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