Renewable Energy in Pakistan: 15.2% of Households Use Solar

Solar panel installations in Pakistani homes are rising rapidly. Pakistan PSLM/HIES 2018-19 survey results reveal that 15.2% of all households are using solar panels as a source of energy for their homes.  Khyber-Pakhtunkhwa province leads the nation with 40% of all households using solar energy. Rural Pakistan is embracing solar power at a faster rate than Urban Pakistan. Adoption of solar in rural areas of KP is at 43%, Sindh 33.9%,  Balochistan 20.4% and Punjab 7.9%. Rapid decline in cost of solar panels appears to be driving the adoption of solar in Pakistan's rural areas where grid power is either unavailable or unreliable. Pakistan is starting to join the clean energy revolution with increasing adoption of solar and recent announcement of National Electric Vehicle Policy. Covid19 pandemic may temporarily slow it down but the upward trend will likely continue.
Pakistan Solar Panel Imports in Millions of US Dollars. Source: FBS Via Pakistan Today

Solar Panels in Pakistan: 

Imports of solar panels have increased at 15.9% annually in US dollar terms and 22.6% in Pakistan rupee terms in the last years. Solar panel imports have jumped from just $1 million in 2004 to a peak of $772 million in the fiscal year ending June 30, 2017, then declined to  $343 million in 2018 and then rose again to $409 million in 2019.  Covid19 pandemic may temporarily slow it down but the upward trend will likely continue.
Households Using Solar Panels. Source: PSLM/HIES 2018-19 Via Bilal Gilani of Gallup
Solar panel installations in Pakistani homes are rising rapidly. Pakistan PSLM/HIES 2018-19 survey results reveal that 15.2% of all households are using solar panels as source of energy for their homes. 

Government survey data shows that 20% of rural households are  using solar panels, significantly ahead of just 7.7% urban households in the country. Khyber-Pakhtunkhwa province leads with 40% of households using solar energy, followed by Balochistan 25.7%, Sindh 20.5% and Punjab 6.4%.

Rural Pakistan is leading the nation into wider use of solar power.  Adoption of solar in rural areas of KP is at 43%, Sindh 33.9%,  Balochistan 20.4% and Punjab 7.9%. Rapid decline in cost of solar panels appears to be driving adoption of the solar energy in Pakistan's rural areas where grid power is either unavailable or unreliable.

Pakistan Electric Vehicle Policy:

Pakistan has a low level of motorization with just 9% of the households owning a car. Nearly half of all households own a motorcycle. Motorization rates in the country have tripled over the last decade and a half, resulting in nearly 40% of all emissions coming from vehicles. Concerns about climate change and environmental pollution have forced the government to to take a number of actions ranging from adoption of Euro6 emission standards for new vehicles with internal combustion engines (ICE) since 2015 and announcement of a national electric vehicle (EV) policy this year.

Private vehicle ownership in Pakistan has risen sharply over the last 4 years. More than 9% of households now own cars, up from 6% in 2015. Motorcycle ownership has jumped from 41% of households in 2015 to 53% now, according to data released by Federal Bureau of Statistics (FBS) recently. There are 32.2 million households in Pakistan, according to 2017 Census.


Vehicle Ownership in Pakistan. Source: PBS

Pakistan's National EV Policy is a forward looking step needed to deal with climate concerns from growing transport sector emissions with rapidly rising vehicle ownership. It offers tax incentives for buyers and sellers. It also focuses on development of nationwide charging infrastructure to ease adoption of electric vehicles.

Low Carbon Energy Growth:

In recent years,  Pakistan government has introduced a number of supportive policies, including feed-in tariffs and a net metering program to incentivize renewables. These have been fairly successful, and renewables capacity in the country surged substantially over 2018 when 1245 MW was added, of which 826MW was contributed by the solar sector, according to Fitch Solutions.

Non-Hydro Renewables in Pakistan. Source: Fitch Solutions

Pakistan’s Alternative Energy Development Board (AEDB) recently signed deals for projects that will see the country expand its wind power capacity by 560 MW.  Fitch Solutions forecasts Pakistan's solar capacity to grow by an annual average of 9.4% between 2019-2028, taking total capacity over 3.8GW by the end of our forecast period.

Sindh government has recently signed a deal for 400MW solar park at Manjhand, 20MW rooftop solar systems on public sector buildings in Karachi and Hyderabad, and 200,000 solar home systems for remote areas in 10 districts of the province. The project is estimated to cost USD105million, with the World Bank funding USD100 million.

The biggest and most important source of low-carbon energy in Pakistan is its hydroelectric power plants. Pakistan ranked third in the world by adding nearly 2,500 MW of hydropower in 2018, according to Hydropower Status Report 2019.  China added the most capacity with the installation of 8,540 megawatts, followed by Brazil (3,866 MW), Pakistan (2,487 MW), Turkey (1,085 MW), Angola (668 MW), Tajikistan (605 MW), Ecuador (556 MW), India (535 MW), Norway (419 MW) and Canada (401 MW).

New Installed Hydroelectric Power Capacity in 2018. Source: Hydroworld.com

Hydropower now makes up about 28% of the total installed capacity of 33,836 MW as of February, 2019.   WAPDA reports contributing 25.63 billion units of hydroelectricity to the national grid during the year, “despite the fact that water flows in 2018 remained historically low.” This contribution “greatly helped the country in meeting electricity needs and lowering the electricity tariff for the consumers.”

Chinese BYD in Pakistan:

Multiple media reports suggest that China's BYD is about to enter Pakistan market following the announcement of Pakistan National EV Policy.   These reports indicate that Toyota, one of the largest automakers in Pakistan, has signed a deal with BYD to manufacture electric vehicles.

Other reports indicate that Pakistan's Rahmat Group is in talks with BYD to set up an electric vehicle plant at Nooriabad in Sindh province.

Minister for Science and Technology Fawad Chaudhry has claimed that in three years Pakistan will become the first country to manufacture electric buses, which will be driven by an electric motor and obtains energy from on-board batteries.

Summary: 

Pakistan is starting to join the clean energy revolution with increasing adoption of solar and recent announcement of National Electric Vehicle Policy.  Solar panel installations in Pakistani homes are rising rapidly. Pakistan PSLM/HIES 2018-19 survey results reveal that 15.2% of all households are using solar panels as source of energy for their homes.  The country has set targets for renewable energy growth and announced National Electric Vehicle Policy.  In recent years,  Pakistan government has introduced a number of supportive policies, including feed-in tariffs and a net metering program to incentivize renewables. These have been fairly successful, and renewables capacity in the country surged substantially over 2018 when 1245 MW was added, of which 826MW was contributed by the solar sector, according to Fitch Solutions.  High-capacity battery pack costs have dropped nearly 40% since 2015, according to Wood Mackenzie data as reported by Wall Street Journal.  Cost reductions are expected to continue to only $8 to $14 per MW-hour by 2020, or about a penny per kW-hour. While production and use of renewable energy are growing, the electric vehicles in Pakistan have yet to find traction. Hopefully, the National EV policy will encourage production and adoption of electric vehicles in the country.  Covid19 pandemic may temporarily slow it down but the upward trend will likely continue.

Related Links:

Haq's Musings

South Asia Investor Review

Clean Energy Revolution in Pakistan

Pakistan Electric Vehicle Policy

Nuclear Power in Pakistan

Recurring Cycles of Drought and Floods in Pakistan

Pakistan's Response to Climate Change

Massive Oil and Gas Discovery in Pakistan: Hype vs Reality

Renewable Energy for Pakistan

Digital BRI: China and Pakistan Building Fiber, 5G Networks

LNG Imports in Pakistan

Growing Water Scarcity in Pakistan

China-Pakistan Economic Corridor

Ownership of Appliances and Vehicles in Pakistan

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Riaz Haq's YouTube Channel

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Comments

Riaz Haq said…
#Pakistan awards $5.8B contract for #dam construction to consortium of #Chinese and #Pakistani companies. #diamerbhashadam will store 6.4 million acre feet (MAF) of #water and produce 4,500 MW of clean #electricity.$1.03B for social programs around the dam http://v.aa.com.tr/1839628

Islamabad on Wednesday granted a contract worth 442 billion Pakistani rupees ($5.85 billion) to a consortium of Chinese and Pakistani companies for construction of a major dam to cope with the country's growing energy requirements.

The contract was signed at a ceremony in the capital Islamabad between the Water and Power Development Authority (WAPDA), and a joint venture of Power China, and Frontier Works Organization – a subsidiary of Pakistan’s Army – for construction of a diversion system, main dam, and access bridge of Diamer-Basha dam, apart from a 21 megawatt hydropower project.

Amir Bashir Chaudhry, chief executive officer of the project, and Yang Jiandu of Power China signed the agreement on behalf of WAPDA and the joint venture respectively, according to a statement by the Water and Power Ministry.

WAPDA has already awarded a consultancy contract of the project to Diamer Basha Consultants Group (DBCG) worth 27.182 billion rupees ($168.8 million). The consultancy agreement includes construction design, construction supervision, and contract administration of the Diamer-Basha Dam project, the statement added.

The development came a day after Prime Minister Imran Khan announced the start of construction of the much-awaited dam in northern Pakistan.

The $14 billion dam, to be constructed on the River Indus in the northern Gilgit-Baltistan region, which borders China, is set to produce 4500MW of affordable electricity, said the statement.

"The 6.4 MAF [million acre foot] water storage capacity of the dam will reduce the current water shortage in the country of 12 MAF to 6.1 MAF," the statement said, adding that it will also add 35 years to the life of Tarbela Dam – one of the two major dams in Pakistan – by reducing sedimentation.

Some 78.5 billion rupees ($1.03 billion) will be spent on social development of the area around the dam, mainly on resettlement of the population.

"It will also be a major source of flood mitigation and save billions worth of damages caused by floods each year," the statement said.

Earlier, Asim Saleem Bajwa, special assistant to the prime minister on information, called the announcement "historic."

"Announcing to start construction of Diamer Bhasha dam today is a historic news for all generations of Pakistan, a huge stimulus for our economy, create 16,500 jobs, generate 4500 MW hydel power, and irrigate 1.2 million acre agriculture land," he tweeted on Monday.

Riaz Haq said…
"What is the solar panel cost / maintenance of running a two bedroom apartment in Pakistan with fans and lights in each room, couple of computers, TV and a Refrigerator?

About Rs 106,000 for 540W system:

Solar Panel: Rs. 100 per watt = Rs. 100 x 540 = Rs. 54,000
Inverter – we will need 1KW inverter = Rs. 26,000
Batteries: 2 x 200 Amp batteries: Rs. 13,000 x 2 = Rs. 26,000
Total Cost: Rs. 54,000 + Rs. 26,000 + Rs. 26,000 = Rs. 106,000 https://www.phoneworld.com.pk/energy-efficient-and-a-better-investment/
Riaz Haq said…
#China ignores #India over world's highest Diamer-Bhasha #dam project in #Pakistani #Kashmir. #Islamabad gets #Beijing funds for joint venture opposed by #Delhi. It will generate 4,500 MW of #power & store 8 million acre-feet of #water. #RenewableEnergy

http://www.southasianwire.com/news/2020/05/24/china-ignores-india-over-dam-project-in-pakistani-kashmir/

In a pierce that has severely dissatisfied India and tightened ecomomic family with China, Pakistan has awarded a agreement to a Chinese-Pakistani corner try to build a dam in a long-disputed Kashmir region.

The initial proviso of a Diamer Bhasha dam project, value 442 billion Pakistan rupees ($2.75 billion), has been awarded to a joint venture between Power Construction Corporation of China and a Pakistan Army’s Frontier Works Organization on a 70:30 basis.

The devise is located in Gilgit-Baltistan, a primeval segment 320km from a limit with China. The multipurpose dam will be used for appetite generation, H2O storage and inundate control. It will have a 4,500 megawatt ability and storage for 8.1 million hactare feet of water.

The dam is China’s initial vital infrastructure devise in Kashmir, and partial of a China-Pakistan Economic Corridor (CPEC), that is tied into China’s vast Belt and Road Initiative.

In 2018, China commissioned an 820km fiber ocular wire underneath CPEC that cost $37.4 million and upheld by a same region.

Muzammil Hussain, authority of Pakistan’s Water and Power Development Authority (WAPDA), pronounced his classification will yield 30% of a investment and a supervision of Pakistan a rest. Hussain put a sum cost of a devise during 1.497 trillion rupees ($8.77 billion).

The figure is contentious, however, given Hussain formerly estimated a cost during about $14 billion on several occasions.

Pakistan is positively in a financial break and would be incompetent to self-finance a project. Only final week, a supervision diverted $6.23 million from a COVID-19 service account to compensate seductiveness on appetite debts.

James M. Dorsey, a comparison associate during Singapore’s S. Rajaratnam School of International Studies (RSIS), believes that China will account a devise by loans to Pakistan, though how these will be repaid stays to be seen. Dorsey told a Nikkei Asian Review that a devise will offer China’s interests some-more than Pakistan’s since “China has a top palm in negotiate due to a mercantile support to Pakistan underneath [CPEC].”

Some observers trust Pakistan is penetrating to get a dam built fast and peaceful to leave financing concerns until later. “There’s no denote that Islamabad has suspicion by how it will cover these measureless costs,” Michael Kugelman, emissary executive of a Asia module during a Wilson Center in Washington D.C., told Nikkei. “Or if it has suspicion things through, it hasn’t expelled a devise to a public.”

“Since [Islamabad] will have few other funder options, it won’t have most precedence with China in terms of a structuring of a intensity loan,” Kugelman said.

In Nov 2017, Pakistan pulled a dam proposal out of CPEC since of Beijing’s conditions, that enclosed owning a project. Islamabad’s progressing requests to other appropriation sources, including a World Bank and a Asian Development Bank in 2016, were incited down since of a longstanding feeling between India and Pakistan over Kashmir.

India immediately cursed a latest development. “We have consistently conveyed a criticism and common concerns with both China and Pakistan on all such projects in a Indian territories underneath Pakistan’s bootleg occupation,” Shri Anurag Srivastava, a central orator of India’s Ministry of External Affairs pronounced in a statement.

Beijing discharged a Indian protest. Foreign Ministry Spokesperson Lijian Zhao described a dam as jointly profitable with win-win potential. “China’s position on a emanate of Kashmir is consistent,” pronounced Zhao.”China and Pakistan control mercantile team-work to foster mercantile growth and urge a contentment of a internal people.”

Riaz Haq said…
#Pakistan's Suki Kinari #hydroelectric power project unaffected by #COVID19. 19.5% work on the 874 MW dam project completed on Kunhar River with an investment of
US $ 1.963 billion under the umbrella of #CPEC. #China #renewableenergy https://www.app.com.pk/progress-of-suki-kinari-power-project-remains-unaffected-during-covid-19-asim-bajwa/ via @appcsocialmedia

Special Assistant to Prime Minister on Information and Broadcasting General (retd) Asim Saleem Bajwa Wednesday said work on the Suki Kinari hydal power project was in full swing as progress on the project remained unaffected due to COVID-19.
In a tweet, Asim Bajwa who is also Chairman, China Pakistan Economic Corridor Authority (CPECA) said, 19.5 percent work on the 874 MW power project had been completed.
He said the project was being established at Kunhar River with an investment of
US $ 1.963 bn under the umbrella of China Pakistan Economic Corridor.
He informed that the project had so far created 4,250 job opportunities and
after completion it would help reducing cost of electricity.
“Bringing cost of electricity down is top priority of the government,” he added.
Riaz Haq said…
#WorldBank approves US $700m for 4,320 MW Dasu #hydropower project in #Pakistan. Loan will be used to build transmission line and complete the 2,160MW first phase of the plant. Total project cost: cost US $4.2 billion.
https://constructionreviewonline.com/2020/04/world-bank-approves-us-700m-for-4-32gw-dasu-hydropower-project-in-pakistan/ via @Construction Review Online

The World Bank has approved US $700m grant to finance the construction of the 32GW Dasu hydropower project in Pakistan. The hydroelectric power plant which is being built on the Indus River, approximately 7km upstream of the Dasu town, Kohistan, Khyber Pakhtunkhwa; is being implemented by Pakistan’s Water and Power Development Authority (WAPDA).

The World Bank’s additional financing will be used to construct the transmission line and complete the 2,160MW first phase of the plant. The entire project is estimated to cost US $4.2bn.

Upon completion, the Dasu hydropower plant will become the largest of its kind in the country, generating low-cost, renewable energy to power millions of users. The hydropower plant is expected to come online in 2023.

World Bank Pakistan country director Illango Patchamuthu said that Pakistan’s energy sector is aiming to move away from high-cost and inefficient fossil fuels towards low-cost, renewable energy to power the national grid. “Along with reforms in the tariff structure, the Dasu Hydropower Project will result in fewer imports of fossil fuels, alleviating the stress on the country’s current account balance,” he said.

In addition to providing most of the clean electricity during the summer months, the Dasu hydropower plant is expected to contribute to the socioeconomic development in Dasu and surrounding areas of the Upper Kohistan District of Khyber Pakhtunkhwa Province.

Furthermore, World Bank Task Team Leader Rikard Liden added that the Dasu hydropower plant has a low environmental footprint and is considered to be one of the best hydropower projects in the world. “It will contribute to reducing Pakistan’s reliance on fossil- fuels and producing clean renewable energy,” he affirmed.
Riaz Haq said…
#China's Goldwind books 50-MW #WindEnergy turbines order in Jhimpir, #Sindh, #Pakistan in an area identified as a “wind corridor” with 1000 MW of wind power capacity installed. Golwind expects to install 150 MW of turbines in Pak in coming years #renewable https://www.renewablesnow.com/news/goldwind-books-50-mw-turbine-order-in-pakistan-701129/

China’s Xinjiang Goldwind Science & Technology Co Ltd (HKG:2208) said it has recently received an order to supply 50 MW of turbines for the ACTII wind project in Pakistan.

Goldwind is set to deliver 20 units of GW 121-2.5MW high temperature model turbines to local wind project developer ACT Wind (Pvt) Ltd, the Chinese manufacturer said.

The ACTII project is sited in Jhimpir, Sindh province, in the area identified as a “wind corridor” and with around 1 GW of wind power capacity installed, according to Goldwind.

ACT Wind is the Chinese company's repeat customer, after previously purchasing Goldwind turbines for the first ACT wind project. The 30-MW ACT wind farm has been operating for about four years.

Goldwind expects to install 150 MW of turbines in Pakistan over the coming years and bring its total installed capacity in the country to 477 MW.

In November 2019, Goldwind signed a contract with Power Construction Corporation of China Ltd (SHA:601669), also known as PowerChina, to equip the 50-MW Gul Ahmed wind project in Pakistan. It has also secured the contract for the Artistic II wind farm project in the country, the company said.

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