IPP Solar Energy Solutions Pakistan suffers a serious lack of electric energy supply leading to frequent power interruptions in urban and rural areas. Two thirds of electric power is generated from fossil fuels of which half is imported oil and the other half indigenous fuel gas. Since the 1990s power generation is liberalised and Independent Power Producers (IPPs) feed their production into the national grid where the Government of Pakistan acts as Power Purchaser. Consumer prices are set by the Government.The applicant Coastal Saba Power Ltd (Pakistani owned and registered in Mauritius) will form a joint venture with local partners PITCO Ltd (energy consultants) and Orient Operating Company (Pvt) Ltd and will establish a decentralised IPP based in Lahore. The IPP will lease PV solar energy installations to be installed at the premises of industrial, agro-processing and commercial clients in the Punjab and Baluchistan. The IPP on the basis of long-term Power Purchase Agreements (PPAs) will maintain the installations and operate a monthly billing system. During the PSI project period some 20 PPAs will be concluded with a total installed capacity of about 1 MW peak and an expected total annual production of  about 2,500 MWh. The project will be the first decentralised IPP using solar energy in Pakistan.Corporate Social Responsibility (CSR)The project will incorporate and adhere to the following CSR standards and principles:• Comply with the ILO and OECD standards.• Payment of living wages and a bonus scheme to staff members.• Payment of overtime, however the standard working hours will be recognized as the norm.• ISO 14001 environmental management and ISO 9001 quality management certifications.• Healthy, safe, spacious and stimulating working environment for its employees.• Employees will be offered medical insurance.• Actively pursue a pro-female gender policy.Impact•	Employment and working conditionsStaff will receive a comprehensive training programme.Working conditions will include: Labour Laws compliance, labour contracts, adherence to ILO /OECD rules, health insurance outpatient and hospital cost, gratuity, interest free loans. provident fund, safe and healthy workplace conditions through OHSAS compliance.Lowest salaries paid to basic workers is € 84/month which is below living wage level of € 120 per month and 122% of official minimum wage of € 69 per month.•	Innovation / Transfer of knowledgeSolar generation of electricity is not new for Pakistan. However, the project will be the first decentralized IPP producing and supplying electricity at the location of the clients under a Power Production Agreement.•	Chain effectsImpact on local suppliersLocal installation contractors will be involved in the installation of the solar installations at the locations of clients engaged in the PPA contracts.Local suppliers will benefit from supplying tubes for the frames on which the solar panels will be mounted and from packing materials for transport and protection of panels prior to installation.Impact on local customers or consumersThe small and medium industries and shopping centres that will be the clients of the joint venture and buy electricity under the PPA contracts, will benefit from constant and reliable supply of electricity at a cost between that of the electricity supplied through the national grid and that of investing and running an own diesel generator. This will allow them to increase their productivity and economic position.•	Impact on the sectorThe project will serve as a pilot, demonstrating the commercial viability of the concept of decentralized electricity supply by solar installations under a PPA and in a wider sense demonstrate the potential of the use of solar power in Pakistan. The project will actively promote the concept and will invite potential clients as well as other sector players and stakeholders to copy the concept.•	EnvironmentThe project will contribute to the reduction of the use of fossil fuels for power generation and the emission of carbon dioxide.•	Position of womenThe joint venture will employ 11 women of which 5 in medium level positions on a total staff of 32. All women will have equal salaries and employment conditions to men and receive an extensive training programme. The establishment of an IPP leasing about 1 MWp of PV solar energy installations to industrial, agro-processing and commercial companies in urban and rural areas for the generation of some 2,500 MWh of electric energy per year.