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.
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.
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.
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).
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
CPEC Transforming Pakistan
Pakistan's $20 Billion Tourism Industry Boom
Riaz Haq's YouTube Channel
PakAlumni Social Network
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| 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.
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.
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| 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.
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
CPEC Transforming Pakistan
Pakistan's $20 Billion Tourism Industry Boom
Riaz Haq's YouTube Channel
PakAlumni Social Network
Comments
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.
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/
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.”
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.
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.
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.
With a slump in demand on account of Covid-19, Pakistan’s installed capacity of electricity would jump to 41,335 Megawatt (MW), adding more woes on account of power tariff increase due to higher capacity payments and lower plant utilisation factors.
According to energy experts, most of the power plants would remain idle due to low demand of electricity in Pakistan following coronavirus-fuelled economic recession. This situation would lead to additional burden of capacity payments in the form of hike in electricity rates.
According to Covid-19 Responsive Annual Plan 2020-21, Pakistan’s power sector may face an unusual situation because of decreased demand of electric power consumption due to the outbreak. The energy demand could be suppressed for all primary energy sources like electricity, natural gas, LNG and petroleum products during the next financial year 2020-21.
In the power sector, plant utilisation factors for power generation stations will be low, increasing the cost of electricity, reveals the Annual Plan. According to it the power sector reforms would be accelerated to improve the energy transmission and distribution performance and overall management of the power sector. Special attention would be given to reduce the power losses to bring down the cost of electricity, it added.
During fiscal year 2020-21, the power generation capacity of 3,933 Megawatt (MW) including 447MW from renewable energy will be added, which will increase the existing installed capacity from 37,402MW to 41,335MW.
An amount of Rs204.54 billion has been proposed in the PSDP 2020-21 for power sector projects of generation, transmission and distribution including government budgeted, self-finance of power sector corporations excluding IPPs.
In year 2019-20, 1,441MW power will be added to the national grid. As a result, the installed capacity would be enhanced from 35,961MW to 37,402MW. As on June 2020, overall generation mix will consist of 49.1% indigenous resources and 50.9% imported fuels.
Regional connectivity
With a commitment to continue work, Pakistan has allocated Rs3 billion funds to execute Central Asia South Asia (CASA) power import project to import electricity from Central Asian States.
According to the budget document, an amount of Rs3 billion has been proposed in the Public Sector Development Programme (PSDP) 2020-21 for the project. The implementation of CASA will continue in 2020-21. The transmission capacity will be enhanced by 4,445MVA on 660Kv network to June 2021. Furthermore, about 94 kilometres and 880km transmission lines would be constructed on 500kv and 600kv, respectively.
An amount of Rs7.8 billion was allocated in PSDP 2019-20 for Central Asia South Asia (CASA) transmission project. Significant progress has been made on the transmission project envisaging laying 1,200km transmission lines for import of 1,300MW from hydel power generation from Tajikistan and Kyrgyz Republic through Afghanistan to Pakistan. The parties have signed core power agreements, including power purchase agreements (PPAs). Meanwhile, land possession has also been taken and security clearance at site is in progress.
Losses of power distribution companies are still higher than the global average of around 8%. Higher losses will be curtailed through power distribution companies’ enhancement projects. The government has given targets to distribution companies to reduce losses in the next financial year.
Pakistan aims to generate 30% of its electricity from renewable energy sources by 2030 such as wind, solar, biomass and small-scale hydro.
This will complement the 27% of current electricity supply coming from large-scale hydro.
To this effect the 271 GE Renewable Energy wind turbines spreading over nine plants have a combined generating capacity of 450 megawatts (MW) – representing more than 36% of the current 1,235-MW total installed wind capacity in the country.
“Renewable energy is the future. With global warming happening, it’s good to say you’re working in the renewables business,” said GE Renewable Energy Services Manager Fawwad Haq.
“We are producing clean energy but not CO2 at these plants, so we’re giving people a better, cleaner type of energy,” he added.
Fawwad manages more than 50 wind turbine technicians who perform maintenance on hundreds of turbines at nine wind farms in the country.
A total of 233 direct and indirect employees help manage operations at eight of these plants.
Most of the wind farms that GE maintains and operates in Pakistan are located in desert regions where temperatures in early June were already in the 40s.
It takes nearly 15 minutes, with necessary water breaks along the way, to climb the 80-meter tall metal towers to reach the top of the wind turbines.
While GE provides wind turbine maintenance across all nine wind farms in Pakistan using GE turbine technology, at eight of them, the company also provides balance of plant services, including power generation and electricity dispatch to the grid.
“After I did my first climb [a couple years ago], I thought, ‘Oh, this is difficult!’ But after a few times, I adjusted to it and now it’s fine,” recalls Fawwad, adding, “The way things are going, renewables will capture a larger share of energy generation in the years to come, not only Pakistan, but in the rest of the world as well.”
He said during his working experience at conventional power generation was quite different as there were separate specialist technicians for mechanical, electrical and instrumentation work. “That’s not the case with wind turbines.”
“Only one team goes up and must be an electrical and mechanical all in one. You need to perform the preventative maintenance and troubleshooting.”
Islamabad:The countryside life in far-flung areas of Pakistan, once considered totally isolated and secluded from the rest of the world and devoid of modern-day facilities, has undergone a massive transformation during the last two decades or so by changing the entire landscape of village life.
The rural life is often considered backward, fixed and hostage to tribal culture and traditions. Similarly, the popular social discourse that nothing has changed in Pakistan contradicts with historical facts.
Looking at the national picture of rural life in Pakistan rapid changes have occurred in almost all spheres of life from communication to education, socialization to healthcare, transportation to banking, governance to farming and cultivation to harvesting due to technological advancement, developmental works, penetration of information technology, remittances and domestic tourism.
Among others, the two factors of economic and technological developments as the agent of change had proved instrumental in shaping the process of change not only in the urban areas but also in suburbs of the country. Not more than twenty years ago when mobility was considered difficult in the remote areas not only due to missing road infrastructure but also due to poor transportation facilities.
‘Tonga,’ a carriage pulled by a horse, was the only facility for public transport while bullock-cart was commonplace phenomena for weight transportation in almost all small villages. The houses made of mud have also slowly been replaced by cemented buildings while the social structure was also changed due to disintegration of combined family structure to separate family system.
Likewise, only a few professions of handicrafts have survived due innovation to capture the pace of time and demand of the market while others have totally faded away. Similarly, the obsolete tools, techniques and methods are no more used in farming, cultivation and harvesting due to low production. Therefore, it could not survive at all in the face of modern technologies.
The media revolution in the country with more than 100 private TV channels has brought the whole world at the doorstep of the villagers while the mobile phone companies and 3G/4G technologies have brought it further closer to the palms of people. Hardly there is anyone left without having a smartphone even in the remotest parts of the country.
Almost everybody has got access to the unbridled flow of information on social media in every nook and corner of the country. Thus the electronic media and communication technologies have brought together the collective experiences of the whole world into rural households. The occupation and profession in rural areas once used to be farming and handicraft only. Now it has also transformed into government services, urban migration, overseas workers and businesses. The migrant workers are not only bringing money to the rural economy, but also ideas and experiences about how people in urban areas and the world outside live.
The villages, the basic components of civilization, where a large segment of society is living, have either transformed into model villages/towns or merged with nearby cities having urbanized lifestyle and lots of hustle and bustle. But in developed parts of the globe, the difference between village and city life is still quite visible due to well-planned construction, proper waste disposal mechanism, sewerage system, cleanliness and greenery.
In an attempt to encourage clean energy in the country, the State Bank of Pakistan (SBP) has enhanced the scope of its Refinance Scheme for Renewable Energy, according to a statement issued on Wednesday.
The scheme allows financing under category III to solar and wind-based energy sale companies. After feedback received from stakeholders, the size of the project established by the vendor, supplier, or energy sale company has been increased from 1MW to 5MW. The cumulative financing limit has also been increased from Rs1 billion to Rs2 billion.
“This revision in the scheme is expected to not only attract fresh local and foreign investment in the sector but also facilitate production of clean energy in the country, helping in managing climate change,” the SBP said.
The SBP Financing Scheme for Renewable Energy was announced in June 2016, with an aim to help address the challenges of energy shortages and climate change in the country.
Initially, the scheme had two categories. Category 1 allowed financing for setting up of renewable energy power projects, with the capacity ranging from 1MW to 50MW for own use or selling of electricity to the national grid, or combination of both.
Category II allowed financing to domestic, agriculture, commercial and industrial borrowers to install renewable energy-based projects of up to 1MW to generate electricity for own use or selling to the grid and distribution company under net metering.
Later, in July 2019, the SBP introduced Category III for facilitating financing to vendors and suppliers to install wind and solar systems of up to 1MW. The SBP also launched a Shariah-compliant version of the scheme in August 2019.
Since the introduction of the scheme, total outstanding financing under the scheme has reached Rs15.6 billion for 217 projects. This has the potential of adding 292MW to energy supply.
https://financialpost.com/pmn/business-pmn/china-push-sees-coal-fired-generation-rise-to-record-in-pakistan
Coal’s surge in the South Asian nation is symbolic of the difficult choice that the region’s developing countries face as they seek affordable energy to support economic growth while trying to limit chronic air pollution. Asian demand is expected to support the commodity as its usage drops in most of the developed world in a transition to cleaner or renewable energy sources.
Is Canada's real estate forecast too optimistic?
Pakistan’s coal-fired power generation jumped 57% to a record in the fiscal year through June, according to data from the government’s National Electric Power Regulatory Authority. Coal accounted for about a fifth of total output, backed by supplies from the country’s first coal mine in its Thar region, developed as part of China’s Belt and Road plan.
Coal is set to expand further as China pushes funds into building more power plants in the country and mines to feed them. Pakistan is one of the flagship markets for China’s Belt and Road initiative, with more than $70 billion of projects including coal and liquefied natural gas fired power plants helping the nation end decades of electricity shortfalls.
“China has been cutting back on coal at home but it has no compunction about using coal in things that it funds outside of China,” said James Dorsey, a senior fellow at the S. Rajaratnam School of International Studies in Singapore. “Chinese can be willing but they need a partner to go along with them. In this case it’s the Pakistani government.”
Belt and Road progress has slowed recently with overseas energy spending last year dropping to the lowest in a decade, dogged by accusations that China is luring poor countries into debt traps for its own political and strategic gain. China’s President Xi Jinping has publicly urged more clean energy as part of the program, and the plan found new life in Pakistan recently with an agreement to build two hydro-power generation projects.
Until 2016, Pakistan had just one coal-burning power plant. It now has at least nine and more are in the making. The first target of these plants has been to replace expensive fuel oil-based generation facilities that burdened the nation’s economy with heavy costs and pollution.
The rise in coal power has come because of supplies from the Thar coal mine, Power Ministry spokesman Zafar Yab Khan said. The country will balance rising coal use with more renewable energy and its coal plants will use low-emissions technology, he said.
With the shift to coal, average generation costs dropped 11% during the fiscal year, according to data from Karachi-based brokerage Arif Habib.
“Pakistan has increased coal-based generation to make it its new base to replace its previous expensive fuel oil-powered power plants,” said Tahir Abbas, head of research at Arif Habib. “This has also helped bring down the power prices, energy import bill and increase the share of an indigenous energy source.”
The Nia Pakistan project is supported by the Asian Development Bank (ADB), which had approved a Disbursement Link Indicators-based loan of $83.69 million under its Access to Clean Energy Investment Program during the previous government’s tenure. However, there was no progress on it and right after taking charge, I took the project out of cold storage, fast-tracked it and put it on speedy execution.
As of this writing, 7,227 schools have been provided with solar power under this project, including installation of energy efficient fans and light bulbs. In the first phase, we are determined to convert to solar some 10,861 primary schools by the end this year. Schools located in off-grid areas, including some 1,794 that have never had access to electricity, would be prioritized.
The second phase will involve solarization of an additional 4,500 schools in the rest of northern and central Punjab. Similarly, over 2,400 Basic Health Units from all over the province would also be converted into Hybrid Solar PV system, benefiting an estimated 168,000 patients every day. The conversion of public sector universities, colleges, hospitals and other public sector buildings to solar energy is also under process.
The Punjab Energy Department plans to convert 60 public sector universities in the province to solar on fast-track basis and Memorandums of Understanding have already been inked with 16 varsities in this regard. The groundbreaking ceremony of converting the University of Engineering and Technology, Lahore to solar power was performed last month, while the THQ Teaching Hospital, Dera Ghazi Khan, and the Government Comprehensive High School, Gujranwala have already been solarized.
A large number of manufacturing and assembling units in the country were opting for renewable energy (captive) generation to secure uninterrupted supply and cut costs. Alpha Beta Core CEO Khurram Schehzad said many companies had installed captive power plants to secure uninterrupted power supply and ensure efficiencies. “Earlier, the captive generation was gas-based, but now the gas is a scarce and expensive commodity, so companies are opting for renewable captive generation.”
Several other companies and manufacturing concerns including P&G, Service Industries Limited, Kohinoor Textile Mills, Fauji Cement Company Eni, and DP World have installed solar power generation to meet their energy requirements. In addition to this, several others have entered into bulk power procurement agreements with alternate energy producers, while a large number of sugar millers have already setup biogas plants.
Khurram said gas shortage, lower costs and commitment to a clean environment were compelling companies to switch to alternate energy resources. “Captive renewable energy offers short-term as well as long-term efficiencies while being environment-friendly. Corporate sector should play a leading role in this transition.” Pakistan enjoys a geo-strategic advantage for producing abundant amounts of solar energy.
Hence, solar technology could save millions of dollars for the country’s economic growth, while also offering various ecological benefits.
The provincial government has finalised the environment-friendly project with the suppliers to provide solar-powered electricity to 200,000 households in 10 districts of Sindh, the provincial energy minister Imtiaz Shaikh said. The 10 districts include Badin, Tharparkar, Khairpur, Sujawal, Mithi, Sanghar, Ghotki, Kashmore, Jacobabad and Qambar Shahdadkot.
The $30 million initiative for rural households with low or no grid access is part of the Sindh Solar Energy Project (SSEP) that aims to increase solar power generation and access to electricity in Sindh province. The World Bank has provided $100 million of financing for SSEP to support utility-scale solar power, distributed solar on and around public buildings, and provision of solar systems to households.
The SSEP project includes a 400MW solar park at Manjhand town in Jamshoro district at a cost of $40 million, a $25 million project to install rooftop solar systems on public sector buildings in Karachi and Hyderabad with 20MW capacity, and the $30 million to provide 200,000 rural households access to affordable solar home systems.
Coal-free future
Pakistan is investing in the renewable energy transition to harness clean energy sources such as solar, wind, hydropower, geothermal and biomass to meet current energy challenges as well as the future demand. The country is moving towards a coal-free future with focus on clean energy. In December 2020, Prime Minister Imran Khan announced that the country will not approve new coal-fired power generation projects as part of its contribution to global efforts against climate change. Pakistan also aims to produce 60 per cent of its energy through renewable resources by 2030.
Pakistan’s energy mix
Pakistan, which experiences critical energy crisis, currently generates its power from an energy mix that includes oil, gas (natural gas and liquefied natural gas, LNG), coal, nuclear and renewable sources such as solar, wind and hydro energy, biomass. In the last five years, 18 wind power projects of 937MW, six solar power projects of 418MW and six 201MW bagasse projects were added to the national grid.
Thermal (fossil fuels) – 58.4%
Hydro – 30%
Renewable and nuclear – 10.6%
https://www.pv-magazine.com/press-releases/longi-partners-with-reon-energy-pushes-forward-commercial-energy-transition-in-pakistan/
The project owner is a leading cement group, the 70MWp project will be divided into 4-5 ground-mounted clusters at its different production sites. It is expected to be the largest commercial PV application in Pakistan upon completion. The project is scheduled to commence operations from the third quarter of 2021.
Reon Energy will perform EPC for the projects. The company has extensive experiences in solar projects, and is one of a few companies able to build large-scale solar facilities for industries throughout Pakistan.
LONGi is selected as the sole solar module supplier for Reon’s largest project to date. After carefully evaluated and analyzed, Reon Energy has chosen LONGi’s Hi-MO 5 series which represents highest module efficiency and reliability. In addition, comparing with other options available in the market, Hi-MO5 series can reduce over $1 US cent in BOS cost and saving nearly 5% project land usage, maximizing its EPC margin.
https://green-bri.org/china-belt-and-road-initiative-bri-investment-report-2020/
Among the BRI countries, investments were spread broadly across the continents. The countries that received most investments were Vietnam, Indonesia, Pakistan and Chile. Particularly Vietnam saw a strong increase of Chinese investments – an increase of over 200% compared to 2019, possibly driven by near-shoring to avoid American sanctions. Other BRI countries that saw increases of Chinese investments despite the COVID-19 pandemic include Poland, Bulgaria, Serbia, Zimbabwe, Zambia and Chile, as well as Thailand.
Analyzing Chinese energy investments in different countries, we find that Pakistan was the country, which received most energy investments from 2013 to 2020, followed by the Russian Federation and Indonesia. Pakistan is both the largest recipient of coal-related investments and also the largest recipient of investments in hydropower. Overall, Pakistan attracted more than 50% of renewable energy investments (47% of which in hydropower), while Russia and Indonesia received predominantly fossil fuel related energy investments.
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Rail: Rail investments included high-speed rail projects connecting China through Thailand and Malaysia to Singapore (Kunming-Singapore rail). A deal of the first 40km segment of the China-Thailand high-speed rail linking Bangkok to Thailand’s border with Laos was signed in December 2020. China is also building a US$6 bn high-speed rail connecting 142 km between Jakarta and Bandung in Indonesia. Furthermore, China has been engaged in building several railway projects on the African continent (e.g. Standard Gauge Railways in Kenya and Ethiopia). China also invested in rail in Europe, such as the Budapest-Belgrade railway. China also invested in several urban rail transport projects, such as US$900 million in a subway in Hanoi, Vietnam (which has been delayed) or the US$1.6 billion metro line in Lahore, Pakistan opened in October 2020.
Road-transport: China invested across all countries with investments including road construction in Pakistan (e.g. Karakoram Highway connecting China and Pakistan all the way to Pakistan’s Gwadar Port). In 2020 investments in road infrastructure decreased by close to 70% to about US$4 billion.
Ports: Pakistan is also one of the largest recipients of Chinese investments in port infrastructure, such as the Gwadar port operated by China Overseas Port Holding Company, which is a strategically important and also contested investment for China. Other strategic port investments can be found in Piraeus, Greece or in Lamu and Mobasa, Kenya, as well as in Djibouti. A recent US$3 billion agreement to commission Croatia’s largest port (Rijeka Port) to a consortium of three Chinese contractors has been cancelled at the beginning of 2021.
Karachi, Pakistan-based denim manufacturer Artistic Milliners further demonstrated its commitment to sustainability with a $370 million investment in two run of river hydropower projects.
Artistic Milliners’ hydropower plants, Hydro I and Artistic Hydro II, will contribute a combined 521 GWh per year. According to Italian energy company ERG SpA, that’s enough energy to meet the demand of more than 133,000 homes. Both plants are located in Khyber Pakhtunkhwa province, with Artistic I Hydro pulling from the Panjkora River and Artistic II Hydro pulling from the Ushu River.
The project will also include the development of wind and solar projects, as well as an operational wind farm.
Regulatory authorities are currently processing generation licenses and tariffs needed for the projects, and commercial operation is slated to begin by December 2027.
According to the International Hydropower Association, renewable hydropower is a clean and low-cost source of electricity generation and responsible water management. Specifically, run-of-river hydropower channels flowing water from a river to spin a turbine. This form of energy uses water flow that is regulated by the facility for a continuous supply of electricity. It’s currently a significant energy source in Pakistan, representing around 25 percent of capacity and 21 percent of generation.
This investment is part of Artistic Milliner’s overall commitment to the land in which it operates. At the end of last year, Artistic Milliners launched the Milliner Cotton Initiative, a call for visibility and women empowerment throughout the cotton supply chain. It also encompasses capacity building for ginners and promotes practices for mitigating extortion throughout the Rahim Yar Khan district of Punjab, Pakistan.
Artistic Milliners is also the first and only Pakistan-based company to abide by the United Nations’ 1.5°C-compliant business model to help mitigate the climate crisis. It has aggressive sustainability targets in place to reach net zero emission by 2025.
https://www.pv-tech.org/jinkosolar-signs-100mw-module-supply-deal-in-key-market-pakistan/
JinkoSolar has secured an agreement that will see its Tiger and Tiger Pro 530 / 535W modules be marketed and distributed in Pakistan throughout 2021.
The company has signed a 100MW module supply deal and formed a long-term development partnership with Pakistani solar firm AE Power.
Farhan Qurban, country manager of Pakistan at JinkoSolar, said the country “has had an impressive boom” in recent years and is currently “one of the key markets” for the company in Asia.
“The 100MW distribution agreement for 2021 between AE Power and JinkoSolar in the Pakistan market represents the first important step of the long-term partnership between the two companies,” he added.
To date, JinkoSolar has supplied up to 30MW of its Tiger Pro modules to Pakistan. The company is set to double production of the Tiger Pro series this year, thanks to the upcoming completion of the first 10GW phase of a new solar cell manufacturing base in Yunnan Province, China.
AE Power CEO Rana Abbas said: “The 100MW distribution contract for 2021 opens up ideal cooperation opportunities for construction companies and rooftop solar power developers in Pakistan in using clean energy at average prices.”
Pakistan aims to generate 30% of its electricity from renewable energy sources by 2030.
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AE Power Focuses on the manufacturing of top quality photovoltaic modules and specializes in PV Technology innovation, application, and system development. The company is a KEY COMPONENT SUPPLIER and PROJECT DEVELOPER. AE Power’s global sales and marketing network Successfully provides end-users with accessible clean energy, whilst promoting its core brand values of STABILITY, DURABILITY, and RELIABILITY. We provide international and local warranty in Pakistan.
https://aepower.pk/about-us/
https://profit.pakistantoday.com.pk/2020/05/04/solar-is-the-future-so-might-as-well-hurry/
While a substantial portion of those imports are for grid-scale projects, a significant proportion are for domestic, commercial, and industrial users who are not necessarily connected to the grid.
Covering waterways would, in a sense, make solar panels water-cooled, boosting their efficiency.
https://www.wired.com/story/why-covering-canals-with-solar-panels-is-a-power-move/
Scientists in California just ran the numbers on what would happen if their state slapped solar panels on 4,000 miles of its canals, including the major California Aqueduct, and the results point to a potentially beautiful partnership. Their feasibility study, published in the journal Nature Sustainability, finds that if applied statewide, the panels would save 63 billion gallons of water from evaporating each year. At the same time, solar panels across California’s exposed canals would provide 13 gigawatts of renewable power annually, about half of the new capacity the state needs to meet its decarbonization goals by the year 2030.
California’s water conveyance system is the world’s largest, serving 35 million people and 5.7 million acres of farmland. Seventy-five percent of available water is in the northern third of the state, while the bottom two-thirds of the state accounts for 80 percent of urban and agricultural demand. Shuttling all that water around requires pumps to make it flow uphill; accordingly, the water system is the state’s largest single consumer of electricity.
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Govt plans to install floating solar panels on dams
They will help reduce evaporation of water, generate clean electricity
https://tribune.com.pk/story/2110629/2-govt-plans-install-floating-solar-panels-dams
He (Minister Omar Ayub) announced that the government was planning to install floating solar panels on the country’s big water reservoirs and along canals in a bid to generate thousands of megawatts of clean energy.
This is part of the government’s plan to give priority to an increase in the share of renewable energy in the total energy mix.
He revealed that floating solar panels would be installed on Tarbela, Mangla, Ghazi Barotha and Khanpur reservoirs besides canals. “It will not only help to reduce evaporation of water but will also generate electricity,” the minister emphasised.
Speaking at a conference on “Water Crisis: An Imminent Danger to Pakistan’s Stability”, Khan warned India that Pakistan would swiftly retaliate if New Delhi violated the Indus Waters Treaty.
“If India tries to make the Indus Waters Treaty as a weapon, then answer from Pakistan will be swift as we will defend our sovereignty.”
He urged the international community to take notice of Indian atrocities in the occupied valley of Kashmir.
He was of the view that if proper investment was made in the water sector, especially in water storages, then it had the potential to take up the country’s gross domestic product (GDP) growth by one percentage point.
Despite its importance in economic growth, the minister decried, no work was carried out for the construction of dams after Tarbela and Mangla and no big dam was commissioned after 1960.
“Our government is actively working on a plan to harness the water resources in order to add 18,000-20,000 megawatts of hydroelectric power to the system,” he said. The minister pointed out that the current installed power generation capacity from all sources stood at 31,000MW, which would be enhanced to 55,000MW by 2030.
By the year 2025, around 8,000MW of renewable energy would be added to the system and 20,000MW would be added by 2030, he anticipated.
https://www.pv-tech.org/longi-solar-takes-pakistan-module-orders-to-500mw-as-country-momentum-builds/
LONGi said more than 80% of orders secured in the country, equivalent to around 422MWp, were for the Hi-MO 5 series of modules which come in power output variants of up to 540W.
Among the clients LONGi has secured in the country are Reon Energy, which is to develop Pakistan’s largest commercial solar project to date – and among the largest commercial rooftops outside of China – at 70MWp. The project is due to enter commercial operations in Q3 2021.
Dennis She, senior vice president at LONGi Solar, said the module manufacturer was committed to helping its customers in Pakistan contribute towards the country’s “path towards greater energy independence”.
“As Pakistan is prioritizing its energy generation methods and enhancing capacity to produce clean energy in order to meet growing demand without degrading the environment, energy project cooperation is playing a pivotal role,” he said.
Amidst a sizeable energy deficit where demand far outstrips power supply in Pakistan, the country is quickly turning to renewable power to bolster its power generation base. As of 30 June 2020, Pakistan had an operational solar generation capacity of 530MW, equivalent to around 1.36% of the country’s total power generation capacity of just over 38.7GW. Renewables in total contribute just 4% to total power output.
But Pakistan maintains an ambition to see that share rise to 30% by 2030, and sizeable additions to the country’s renewables portfolio are planned. LONGi cited estimates that between 565MW and 1,120MW of new solar capacity will be added this year, followed by between 623MW and 1,287MW in 2022.
https://www.pv-magazine.com/2020/05/01/pakistani-regulator-expects-solar-capacity-to-hit-27-gw-by-2047/
NERPA's base-case scenario predicts that overall generation capacity will grow from 33,000 MW in 2020 to around 168,200 MW in 2047. But coal and hydropower will still account for 36% and 42% of total capacity, at 32,948 MW and 55,836 MW, respectively.
By 2030, the share of wind and solar in the overall energy mix will likely increase from about 3% in 2020 to 23%. “Beyond 2030, share of solar and wind plants decreases due to the increase in the number of new local coal-based plants having greater capacity factors,” NERPA said.
However, it also acknowledges that wind and solar are becoming the cheapest forms of new electricity generation. “They are set to replace the conventional fuels to great extent for power generation to meet the future demand growth,” NEPRA said. “The cheaper and widely accessible renewable energy has the potential to substantially decrease the reliability of power sector on expensive imported fuels.”
The organization also predicts that solar power plant capex in Pakistan will drop from $530/kW in 2020 to $371/kW by 2030. A global outlook report that was recently published by SolarPower Europe also predicted that Pakistan will deploy close to 5 GW of solar capacity by 2022.
The State Bank of Pakistan (SBP) has been providing financing on a large scale to promote renewable energy that helped Unilever Pakistan run its 30 per cent plants on renewable energy, central bank governor Dr Reza Baqir said on Tuesday.
Addressing a joint webinar hosted by the SBP and Unilever Pakistan to create awareness about the former’s Financing Scheme for Renewable Energy (FSRE), Dr Baqir said that as of February 2021, financing of around Rs36 billion has been extended for 521 projects producing approximately 850MW.
Financing for sustainable development is the need of the hour and financial institutions have a crucial role in this area, he added.
FSRE aims to encourage investments for clean energy in Pakistan, the SBP governor said, adding that this is part of the country’s efforts to diversify the energy mix and reduce climate change impact.
The scheme offers varied financing options ranging from Rs400 million to Rs6 billion for a range of entities and persons, he said.
This includes captive energy units as well as commercial projects and individual consumers who may share excess production with the national grid.
The SBP issued its FSRE in 2016 and based on positive feedback the scheme was revised in July 2019. The SBP also introduced a Sharia-compliant version of this scheme in August 2019. The scheme aims at meeting Pakistan’s growing electricity demand through renewable energy and promoting clean energy projects as part of Sustainable Development Goals (SDGs).
It promotes the use of indigenous resources such as wind, solar and hydro power to generate electricity as well as encourages the use of renewable energy at consumer level.
Dr Baqir said that Pakistan faces challenge as a result of climate change and adopting prevention strategies are of paramount importance. In this regard the SBP has issued FSRE with a view to promoting renewable energy projects.
He highlighted the key features of the scheme that can be beneficial for the stakeholders ranging from the corporate to the individuals. The scheme has evolved over time and received strong response, said Dr Baqir urging participants to benefit from this facility.
He said that mobilisation of financial resources towards resource efficient and sustainable avenues would play a central role in mitigating climate change. Pakistan is member of Global Sustainable Banking Network (SBN) since 2015 and green and sustainable finance policies are being aligned with global environmental and social standards and best practice.
In his address, Chairman & CEO Unilever Pakistan Amir Paracha said FSRE offered tremendous social and business value to companies and producers both in terms of their environmental footprint and cost savings ambitions.
As part of this financing scheme, Unilever availed a loan of Rs833m through Standard Chartered Bank to set up 8.85MW of renewable energy production facilities across four factories in Punjab.
This effort is in line with Unilever’s global mission for carbon neutrality and sustainability in its manufacturing process. Unilever has committed to remove carbon emissions from operations by 2030, as well as net zero emissions from their products by 2039, which will be 11 years ahead of the 2050 Paris Agreement.
The webinar was attended by various chambers, media organisations, presidents and CEOs of banks, energy experts, representatives of Pakistan Business Council and senior officials from the SBP.
https://www.dawn.com/news/1626781
Mr Memon, who also deals in alternative energy solutions, said sales of solar-powered systems are going on in urban areas but these cannot match the impressive demand in rural areas. He went on to add that in urban areas, residential and educational buildings, private offices and industries are shifting towards the alternative energy option, he said.
Claiming that the price of solar panel systems had been unchanged for the last two years, he said, 5kW and 10kW system (battery, inverter and panels) cost Rs500,000 and Rs1 million, followed by Rs100,000 and Rs200,000 for 1kW and 2kW, respectively.
In rural areas, he said solar energy is also being used to run tube wells and water pumps.
Talking to Dawn, Sikandar Shahzada, the owner of Sikandar and Co, said the boom in construction of highrise buildings, big government projects, vertical expansion in factories, etc has caused an alarming jump in import bill of power generating machines which need 20kVA to 100kVA generators.
A dealer in solar system and generators, Mr Shahzada said that in highrise projects, standby generators are a must to keep lifts moving coupled with ensuring power requirement for water pumping machines in case of power failures.
“People are fast moving towards solar power solutions since power rates and petrol/diesel prices have been going up for the last few years, while many buyers are unable to afford generators due to the rising cost of living,” he said. “Consumers are now well informed regarding affordable living choices and are opting for solar power systems whose sales are 100 per cent up compared to the last two years,” he claimed.
A 20kW solar system is considered feasible as many consumers after consuming low power transfer excess power to K-Electric under a deal for which a separate meter is installed, he explained.
The price of 20kW and 30kW solar systems is Rs1.85m and Rs2.8m, respectively, while the price of one kVA branded Chinese generator now costs Rs32,000 as against Rs26,000 some 10 months back, he said. A 2.5kVA power gadget costs Rs52,000-55,000, up by 15pc compared to price prevailing 10 months back, he added.
Mr Shahzada attributed the hike in generator prices to rising freight charges, global container shortages and soaring copper and steel prices which had offset the impact of low import cost on account of gaining rupee against the dollar in the last nine months.
In August 2020, one dollar was equivalent to Rs168.71 as compared to current inter-bank rate of Rs152-153.
Talking to Dawn, Pakistan Machinery Merchants Group (PMMG) President Khurram Saigal said household consumers and small and medium enterprises (SME) are reluctant to purchase generators due to a slowdown in loadshedding in the last few years. “High generator prices and consumer focus towards solar systems has hit sales of these machine. Sales to SMEs are down by 70pc in the last two years,” he claimed.
The government of Pakistan is planning to build solar plants on top of canals spread across the region of Punjab, which hosts several canal irrigation systems.
The Punjab Power Development Board (PPDB) is currently seeking consultants to conduct a feasibility study for the deployment of solar plants on canals spread across the Gujranwala division, which is an administrative division in northern Punjab; and at the Rakh branch, which is a canal originating from Lower Chenab canal, in Gujranwala, and ending at Samundri, in Faisalabad district.
“Punjab has one of the widest-spread canal network[s] in the region; comprising of lined and unlined channels,” the authority said in the tender document. “Installations of solar PV panels on canal[s] … can avoid [the] use of expensive land for generating environment-friendly power. The generated electricity can be used by nearby localities or industry.”
The selected consultants will have to identify all lined and unlined canal parcels and distributary, minor canals that are suitable for canal-top solar power generation; and suitable power infrastructure located nearby, and select six sites. The deadline to submit proposals has been set for September 30.
According to a recent study from the University of California, Santa Cruz, in the United States, solar canals are already competitive with ground-mounted PV. Solar plants on canals have already been successfully built in India, where this technology has shown that solar power can also be generated without occupying land and, at the same time, reduce water evaporation.
Pakistan's population of 220 million is set to grow at a rate of 1.5 percent annually, which will lead to drastically growing demands for energy. However, energy deficiency has been a serious challenge to the security and economy of the country. Currently, almost 80 percent of Pakistan's energy supply comes from the burning of fossil fuels, such as the oil and gas that Pakistan has to import.
At the same time, Pakistan is blessed with natural resources such as sunlight and wind. According to recent studies, Pakistan's solar potential is estimated to be over 100,000 megawatts. Excellent conditions for harnessing solar energy can be found in the southwestern province of Balochistan, where the sun shines about eight hours daily or approximately 3,000 hours per year. For many Pakistani villagers who live far from the national grid, distributed solar power provides an ideal solution.
Facing the urgency of global climate change, Pakistan has been promoting more environmentally friendly renewable energy in recent years. The government intends to boost the share of clean and green energy to 60-65 percent of the total energy mix by 2030. Some key initiatives have been taken, such as the Solar Village Electrification program, under which more than 40,000 villages that are too far from the national grid to be economically connected now have energy access, and the Solar Powered Efficient Pumps program which is designed to replace 1.1 million water pumps that were previously operated with either insufficient electricity or diesel. The Quaid-e-Azam Solar Power in Punjab is the first utility-scale solar power plant in the country.
To promote solar energy, the Pakistani government has also offered a flexible and attractive policy that includes tax incentives and legal protection for the return on investment (which is usually eight years, the highest in the world). Under the China-Pakistan Economic Corridor (CPEC), further incentives are offered for Chinese investors, along with other preferential treatment.
As the interviews in the book Belt and Road Through My Village have shown, Pakistani people are the beneficiaries of solar energy, which has improved the socioeconomic conditions of the common people, enhanced their income and made their lives more comfortable. Solar energy has served as a catalyst in poverty eradication. People are happy and grateful to their Chinese brethren and welcome more similar development projects to improve their lives. These projects are cost-effective, and, contrary to Western propaganda, they are not debt traps.
China is a world leader in solar energy and has been meeting the worldwide demand. Today, China can share its solar technology, experience and environmental improvement stories with the rest of the world. The Pakistani government's new policies and determination to develop solar energy provide Chinese solar companies and investors, as well as the Pakistani people, a great opportunity to grow together cleanly and sustainably.
2 solar parks will be established in suburbs of Karachi, each on a 600-acre land
https://gulfnews.com/world/asia/pakistan/pakistan-world-bank-to-provide-aid-for-generating-350mw-of-clean-electricity-for-karachi-1.84330167
Under the initiative, two solar parks will be established in suburbs of Karachi each having the area of 600 acres. One of the parks will be established in Maghopir area of District West and the other clean energy facility will be set up in District Malir of Karachi. Each of the park will generate 175 MWs of clean electricity. The project is expected to be completed in two years with a cost of $40 million.
The Sindh Transmission and Dispatch Company, which is a subsidiary of Sindh government’s Energy Department, will lay the transmission line for evacuation of electricity from the solar parks. The K-Electric will be the buyer of the clean electricity and will also establish grid stations for the purpose.
Sindh Energy Minister, Imtiaz Ahmed Shaikh, said the provincial government is committed to utilise renewable and indigenous resources for clean power generation for the people of Sindh.
He said the utilisation of the solar power would go a long way to protect the Karachi’s environment and also bring down the cost of electricity for the power consumers in the city.
He said the Sindh government had been making speedy progress to utilise solar power to generate electricity as per the international environmental standards.
The Energy Minister mentioned that after establishing solar parks in Karachi, similar clean energy facilities would be established in Hyderabad, Larkana, Sukkur, and other cities of Sindh.
The MoU was signed by the K-Electric’s CEO, Moonis Abdullah Alvi, and Sindh government’s Energy Secretary Abu Bakar Madani. The World Bank’s Country Director in Pakistan, Najy Benhassine, attended the MoU signing ceremony virtually.
2 solar parks will be established in suburbs of Karachi, each on a 600-acre land
https://gulfnews.com/world/asia/pakistan/pakistan-world-bank-to-provide-aid-for-generating-350mw-of-clean-electricity-for-karachi-1.84330167
Under the initiative, two solar parks will be established in suburbs of Karachi each having the area of 600 acres. One of the parks will be established in Maghopir area of District West and the other clean energy facility will be set up in District Malir of Karachi. Each of the park will generate 175 MWs of clean electricity. The project is expected to be completed in two years with a cost of $40 million.
The Sindh Transmission and Dispatch Company, which is a subsidiary of Sindh government’s Energy Department, will lay the transmission line for evacuation of electricity from the solar parks. The K-Electric will be the buyer of the clean electricity and will also establish grid stations for the purpose.
Sindh Energy Minister, Imtiaz Ahmed Shaikh, said the provincial government is committed to utilise renewable and indigenous resources for clean power generation for the people of Sindh.
He said the utilisation of the solar power would go a long way to protect the Karachi’s environment and also bring down the cost of electricity for the power consumers in the city.
He said the Sindh government had been making speedy progress to utilise solar power to generate electricity as per the international environmental standards.
The Energy Minister mentioned that after establishing solar parks in Karachi, similar clean energy facilities would be established in Hyderabad, Larkana, Sukkur, and other cities of Sindh.
The MoU was signed by the K-Electric’s CEO, Moonis Abdullah Alvi, and Sindh government’s Energy Secretary Abu Bakar Madani. The World Bank’s Country Director in Pakistan, Najy Benhassine, attended the MoU signing ceremony virtually.
Besides, the solar power giant a 100MW contract with its reliable partner Energy for You, furthering its commitment to renewable energy and fueling the national transition to a low carbon economy.
Pakistan is a perfect place to develop solar power due to its high levels of solar irradiation, and the government also enacts Indicative Generation Capacity Expansion Plan 2021-2030 to facilitate the renewable energy transition. Up to now, 60 percent of Pakistan’s electricity comes from expensive imported fossil fuels and coal. Expanding renewable energy can help Pakistan save about US$ 5 billion in the next two decades. Beyond that, the development of the PV industry has excellent natural conditions in Pakistan, for instance, solar irradiance in Pakistan is 5.3 kWh/m2/day, which means inexhaustible resource for PV power generation. “To help meet Pakistan's targets of clean and green energy, Sungrow expands its cooperation capacity with local distributors to better empower small and medium enterprises (SMEs) as well as the emerging residential users. The upcoming 100MW sales contract helps provide more clean power for local users in Pakistan,” said Howard Fu, Country Director of Sungrow Pakistan, in an interview with Gwadar Pro.
Since entering the Pakistan market in 2015, Sungrow has made great contributions to the development of the China-Pakistan Economic Corridor. It provided inverters for the Zonergy 900MW Solar Power Project, as well as Pakistan's largest cement plant and first plant energy storage system. In 2020, Sungrow won the bid for the photovoltaic construction project of the Presidential Palace of Pakistan to install PV products for the presidential office. At present, it has established a good cooperative relationship with the Pakistani government and many local power enterprises. Sungrow will spare no effort to contribute to CPEC.
https://www.globalvillagespace.com/world-bank-wapda-to-setup-pakistans-first-floating-solar-farm/
Currently, according to the National Electric Power Regulator Authority state industry report 2021, Pakistan’s total installed electricity generation capacity is 143,588 GWH, of which a measly 4,521 GWH is produced by renewable sources such as solar and wind. Thermal sources account for 61.76 percent, whereas Hydel sources account for 27.02 percent. A shift toward renewable sources of energy was long pending and is a major component of Pakistan’s vision 2050.
The Water and Power Development Authority (WAPDA) plans to take on the Floating Solar Project (FSP or the Project) and, in that effort, seeks financing from the World Bank. Pakistan’s Water and Power Development Authority has prepared a Stakeholder Engagement Plan (SEP), and according to a report by Business Recorder, it is engaged in meetings with the World Bank to establish a 300 MW floating solar project in the country.
A delegation from the World Bank is expected to reach Pakistan today for a ten-day visit, for the initial assessment and evaluation of the project. The World Bank delegation will meet with all the relevant authorities and stakeholders, such as the Ministry of Water Resources, Water and Power Development Authority, and the Economic Affairs Division. After the visit, the World Bank mission would generate a feasibility report of the project, which would detail the proposed financing and the expected Return on Investment (ROI) in the following period.
The World Bank team includes but is not limited to; Gunjan Gautam (Senior Energy Specialist and Task Team Leader), Rikard Liden (Lead Energy Specialist and co-Task Team Leader), Imran ul Haq (Senior Social Development Specialist), Sana Ahmad (Environmental Specialist), Uzma Sadaf (Sr Procurement Specialist), Shafiq Hussain (Procurement Specialist), Noureen LNU (Financial Management Specialist), Mohammad Omar Khalid (Senior Consultant) to be supported by Amna W Mir (Senior Program Associate).
The World Bank mission is expected to hold a meeting with the project management unit of WAPDA on the 22 April in Islamabad. Following which, it is scheduled to meet with the officials of the Water Resources Ministry on 23 April. The mission would also listen to briefings and partake in discussion sessions with the relevant authorities.
According to the initial assessment conducted by the Water and Power Distribution Authority of Pakistan, the project is expected to strengthen the capacity of WAPDA as it increases the supply of electricity by financing 300 MW floating solar subprojects in water body of the already existing project of the Ghazi-Barotha complex.
Michael R. Bloomberg, the former mayor of New York City, will announce a $242 million effort on Tuesday to promote clean energy in 10 developing countries.
The investment is part of Mr. Bloomberg’s push, announced last year, to shut down coal production in 25 countries and builds on his $500 million campaign to close every coal-fired power plant in the United States. The announcement is tied to a gathering this week in Rwanda hosted by Sustainable Energy for All, an international group working to increase access to electricity in the global south.
The money will fund programs in Bangladesh, Brazil, Colombia, Kenya, Mozambique, Nigeria, Pakistan, South Africa, Turkey and Vietnam. Representatives of Bloomberg Philanthropies and partner organizations, including Sustainable Energy for All and the ClimateWorks Foundation, said they would work with local governments and businesses to develop spending plans.
Helen Mountford, the president and chief executive of ClimateWorks, said that specific ways Mr. Bloomberg’s money could be spent include research and analysis, public education campaigns, clean energy pilot programs and buyout payments to close existing coal plants.
“Which strategies are appropriate for each country will really be guided by the in-country partners who know them best,” Ms. Mountford said. “The first approach is to identify the relevant strategies per country and to start to identify who can help to deliver those and move those forward and get the funding to the ground.”
Success in the 10 nations would demonstrate to other countries that renewable energy can help, not hinder, economic growth, Mr. Bloomberg said in an interview by email. “The alternative is to meet growing energy needs by burning more coal, which would have disastrous consequences for public health and for the battle against climate change,” he said.
Climate campaigns tend to focus on industrialized countries, which are responsible for the vast majority of greenhouse gas emissions. But many developing countries have rapidly growing populations and economies, and rapidly increasing energy needs. How nations meet those needs will be a major factor in whether the world can decarbonize fast enough to avoid the worst consequences of a warming planet.
Developing countries “haven’t reached their peak in the amount of energy they actually need,” said Damilola Ogunbiyi, chief executive of Sustainable Energy for All. “We have a unique opportunity to drive that energy source being renewable from the start instead of going back again in another 30 years and try and transition them out of unsustainable sources of power.”
@PFAN_PPSE
#Pakistan can get up to 20% of total power capacity from variable renewable energy simply by focusing on existing substations, mainly resulting in a series of small solar projects - according to
@WorldBank
https://twitter.com/PFAN_PPSE/status/1529715190018760706?s=20&t=m-2H6D6T1PemgQz3hbj-pA
https://blogs.worldbank.org/endpovertyinsouthasia/expanding-solar-and-wind-pakistan-requires-decisive-action
Rooftop solar can be delivered quickly and at a relatively low cost, while avoiding the need for additional transmission & distribution infrastructure.
Perhaps there can be a silver lining from the current load shedding--or planned power cuts due to insufficient supply--that is affecting the electricity sector in Pakistan: the immediate implementation of competitive bidding for new solar and wind capacity. For the last few years, the dominant narrative around the electricity sector has been one of “surplus capacity”, which has been used to justify postponing the procurement of new solar and wind. One of the concerns is that because the power sector must pay legacy fossil fuel generators regardless of whether they generate power (this is called “capacity payments”, for the capacity they provide to the system), adding additional capacity will further harm the financial viability of the sector. However, the current crisis illustrates the folly of such short-term thinking.
As highlighted in a report just published by the World Bank – “Variable Renewable Energy Competitive Bidding Study” – competitive bidding, whereby the government contracts for new power supplies through a reverse auction process based on the tariffs offered by different private sector developers, must start in 2022 to meet the requirements of the government’s Indicative Generation Capacity Expansion Plan 2021-2030. This envisages 2 Gigawatts of additional solar and wind capacity coming online from 2024 onwards, with further additions in subsequent years. Previous analysis published by the World Bank suggests that the IGCEP 2021-2030 targets are not ambitious enough, with scope for a more aggressive expansion of variable renewable energy. Considering the heavy reliance on expensive fossil fuels – which have dramatically increased in cost over the last few months – Pakistan would be saving money right now if it had been more ambitious in the past, even allowing for capacity payments.
Pakistan can get up to 20% of total power capacity from variable renewable energy simply by focusing on existing substations.
wind power
Implementation of competitive bidding will need to be taken forward by both the federal government (under the auspices of the Alternative Energy Development Board) and the provincial governments through a coordinated process. In addition to launching a competitive bidding process for the existing “Category 3” projects (those for which Letters of Intent have been issued under the previous policy regime), there is huge potential for quick wins by identifying substations that have surplus integration capacity and then designing a competitive bidding process involving a large number of such sites. As noted by the World Bank in our last study on this topic, the country can get up to 20% of total power capacity from variable renewable energy simply by focusing on existing substations, mainly resulting in a series of relatively small solar projects spread across all provinces.
Solar panels to generate 500MW of electricity after two years
https://tribune.com.pk/story/2365112/sindh-govt-plans-to-launch-floating-solar-power-project
"Work on the feasibility report of the project is in full swing and it is hoped that the project will start generating electricity in two years time after going through the approval stages," said Sindh Energy Minister Imtiaz Ahmed Shaikh, adding that Go Company, which was working on the project, was expected to invest US$400 million in the project.
The energy minister’s statement came during his talk with officials from power companies.
He said that this was a unique floating solar power plant project for Pakistan which would not only provide 500 MW of environmentally friendly electricity but would also create employment opportunities in the province.
"Keenjhar Lake will promote tourism and help in controlling load shedding," he added.
Imtiaz Shaikh said that the 500 MW eco-friendly power project was another milestone of the achievements of the Sindh government.
In recent months, Pakistan has seen efforts to increase the instalment and use of solar panels. The government worked towards a comprehensive solar energy package comprising tax waivers and concessionary loans for consumers in a bid to overcome the prolonged power outages that have stalled life in the country.
The solar package would include a short-term plan for shifting government offices to solar energy. It involves the preparation of a plan for helping small consumers to switch over to solar energy with the help of subsidies or concessionary loans.
The government is also planning to waive the general sales tax on all the components used in generating solar energy.
The energy task force, chaired by Shahid Khaqan Abbasi, reviewed the solar power plan in a recent meeting. The prime minister constituted the task force on solar energy initiatives with a vision to promote sustainable and green energy.
http://en.ce.cn/Insight/202206/11/t20220611_37745824.shtml
Presenting the budgetary proposals for the next fiscal year in the National Assembly on Friday, Pakistani Finance Minister Miftah Ismail said that the energy sector has pivotal importance for the people as well as the industries and trade in the country, adding that at the moment fuel prices were skyrocketing, which made thermal energy expensive. “For these sectors and the people we gave an additional subsidy of 214 billion rupees,” the minister noted.
The Finance Minister proposed tax exemption on import and local supply of solar panels. He said soft loans from banks will be arranged for the people who consume less than 200 units of electricity to purchase solar panels.
The previous government of Prime Minister Imran Khan had imposed a 17 percent general sales tax. The imposition of taxes on solar panels has received criticism from different quarters.
Earlier in May, Prime Minister Shehbaz Sharif announced the reversal of the decision to tax the solar panels, which will be implemented in FY23.
Chinese companies manufacturing solar panels will have to play a crucial role in the generation of Alternative Renewable Energy (ARE) in Pakistan. At the moment, according to a market survey, more than 90 percent of solar panels and other related equipment are being imported from China. Chinese companies are executing and running solar power projects in Pakistan including 300 MW solar power projects which is operational under the umbrella of China-Pakistan Economic Corridor (CPEC)
In a recent interview with Gwadar Pro, former Prime Minister Shahid Khaqan Abbasi said, “solar is very critical to Pakistan’s need today” and added, “I am expecting that China, which has the most experience in the world in solar, will come to Pakistan and help the country get more sustainable energy”. He also welcomed more Chinese companies to come to Pakistan and establish solar panel manufacturing plants in the country.
Pakistan targets an on-grid Alternative Renewable Energy (ARE) generation mix of 20 percent by 2025 and 30 percent by 2030, adding the policy targets the development of ARE projects mainly on competitive bedding, unsolicited mode limited to G2G and new technologies.
Pakistan has a population of over 225 million. Approximately 88 percent of the population has access to electricity while 12 percent remains un-electrified. The annual per capita electricity consumption in Pakistan is around 550 kWh as compared with the world average of 3,081 kWh per capita.
National Electric Power Regulatory Authority (NEPRA) approved Indicative Generation Capacity Expansion Plan (IGCEP) 2021 with demand supply projects till 2030. Under IGCEP, the current installed capacity of 34,776 MW will become 61,112 MW by the end of 2030. Apart from the committed pipeline projects, the IGCEP requires an addition of 10,062 MW of ARE capacity by 2030.
https://www.brettonwoodsproject.org/2022/04/imf-programme-in-pakistan-undermines-renewable-energy-roll-out/
The unprecedented rise in solar photovoltaic (PV) installations in Pakistan’s off-grid and weak grid regions in recent years has been a windfall for vulnerable communities. Buoyed by the GOP’s decision to waive taxes on solar products in 2014, the growth reflects solar’s suitability for powering tube wells, water pumps and purification systems for drinking water and irrigation in remote and water-stressed areas. The primary beneficiaries of this boom have been poor farming communities – especially women – who have historically struggled with access to electricity and water. Solar technology, however, is still a largely import-based market, and growth is likely to be slowed with users unable to meet higher prices.
https://pakobserver.net/green-investment-on-rise-pakistan-to-get-30-renewable-energy/
Until now, renewable energy sources make up a very minor fraction of Pakistan’s overall power generation mix. According to a recent report of the National Electric Power Regulatovry Authority, the installed capacity for wind and solar accounts for roughly 4.2% (1,831 MW) and 1.4% (630 MW) of a total of 43,775 MW, respectively.
China is already the biggest investor in green energy in Pakistan. Currently, out of the $144 million in foreign investment in solar PV plants in Pakistan, $125 million is from China, accounting for nearly 87% of the total.
Thanks to Chinese investments, a few weeks ago Federal Power Minister Khurram Dastgir Khan inaugurated two new wind energy projects in Jhimpir, Thatta District, Sindh, with an aim to produce cheaper and clean electricity through indigenous energy sources. Wind projects in this region have been one of several renewable energy projects to have received Chinese investment in recent years. Around 90 kilometers from Karachi, Jhimpir is the heartland of the country’s largest ‘Wind corridor’, which has the potential to produce 11,000 megawatts (MW) of energy from green resources.
https://www.dawn.com/news/1737553/minister-announces-provision-of-solar-energy-to-200000-housing-units
The decision was taken at a meeting between Energy Minister Imtiaz Ahmed Shaikh and a delegation of the World Bank headed by its director Najy Benhassine at the energy department.
Mr Shaikh told Dawn that the panels would be installed in all districts of the province under the Sindh Solar Project.
“Over 200,000 houses/units will be solarised in both rural and urban areas of all districts as part of the provincial government’s major initiative to end the energy crisis,” he said.
The minister said that it was also decided that a subsidy of $160 per house/unit in rural areas and $110 in urban areas would be given.
“Initially. solar panels are being installed in 10 districts and the process will be extended to all other districts of Sindh,” he said.
The minister said the World Band delegation expressed its satisfaction over the pace of ongoing projects in the province’s energy sector.
He said the importance of generating green environment-friendly energy was increasing rapidly in view of climate-change impacts.
There were many opportunities for blue economy in this sector, he said. “The speed of wind in the sea is many times better than on land, so wind turbines can be installed on the sea and beaches to generate cheaper electricity,” he said.
Imtiaz Shaikh said that an economic zone could be established in coastal area, which would be an important milestone in the development of the coastal area. “The energy department will cooperate in developing offshore wind projects near coastal areas,” he said, and added that floating solar energy units would be created for economic development of the country.
He said that the energy department wanted to work with the Pakistan Institute of Oceanography to develop floating solar projects in coastal areas.
“Floating solar systems and offshore wind projects can expand blue economy opportunities through affordable energy,” he added.
The minister said that land for water-based green energy projects was several times cheaper and unlike most land-based solar plants there, floating arrays could be stationary.
To a question, he said that the provincial government had also decided to restructure the proposed Sindh Petroleum Company which would work for gas exploration.
He said that the SPC would give licences for gas and petrol exploration in the province, adding that a draft of recommendations regarding activation of the SPC and its rules and regulations had been prepared.
He said that the SPC along with the search for new gas reserves would also monitor the distribution of existing gas reserves.
Imtiaz Shaikh demanded a new natural resources agreement between the federation and the provinces and said that the new gas distribution agreement would help curb the sense of deprivation found in the provinces.
https://www.pv-tech.org/industry-updates/longi-receives-csr-award-from-pakistans-national-forum-for-environment-and-health/
LONGi has announced that it has received a CSR award from the Pakistani National Forum for Environment and Health (NFEH) and the CSR Club for its outstanding contribution to the country’s environmental status.
Established in June 1999, the NFEH is affiliated with the United Nations Environmental Program (UNEP) and its activities are supported by the Pakistani government’s Ministry for Climate Change.
Ali Majid, LONGi General Manager for Pakistan, received the award on behalf of the company, commenting: “We are delighted to receive this award from the NFEH and CSR Club. As a global leader in solar technology, we believe it is our responsibility to create a sustainable future for generations to come. We are committed to developing innovative solutions that reduce carbon emissions and promote sustainable energy consumption and we will continue to work towards a greener future.”
https://www.pv-magazine.com/2023/02/15/pakistani-regulator-backtracks-on-amendments-to-net-metering-tariff/
Amid fierce public opposition, Pakistan’s National Electric Power Regulatory Authority (Nepra) has decided not to proceed with proposed amendments to its 2015 net-metering regulations. Nepra originally planned to reduce the tariff paid to net-metered households from PKR 19.32 ($0.072)/kWh to PKR 9/kWh.
Nepra says it will not move ahead with its draft amendments to Pakistan’s 2015 regulations for distributed generation and net metering.
In September 2022, the regulator proposed replacing the current national average power purchase price of PKR 19.32/kWh with the national average energy purchase price of PKR 9/kWh for net-metered households that inject excess electricity into the grid. The measure would have affected 20,700 households.
After public consultation, the public and consumers “strongly opposed the proposed amendments, citing reasons that electricity through net metering is one of the most efficient methods and the proposed amendment in the regulations would discourage net metering/solar installation,” Nepra said in an official statement about its decision to reverse the proposed amendments.
In the same statement, Nepra argued that electricity generated through rooftop solar should be mainly for self-consumption and “not for commercial sale.” However, it conceded that electricity from net-metered households represents less than 1% of the national distributor’s electricity purchases.
“The economic benefits of net metering in terms of displacement of costlier electricity, savings of foreign exchange and incurring minimal losses, cannot be ignored,” it added.
In September, Afia Malik, a senior research economist for the Pakistan Institute of Development Economics (PIDE), told pv magazine that she expects just 23 MW of excess electricity to be exported into the grid by the affected net-metered households.
The Pakistani authorities say that prospective developers must submit bids for a new 600 MW solar tender by May 8.
https://www.pv-magazine.com/2023/04/04/pakistan-issues-tender-for-600-mw-of-solar/
Pakistan's Alternative Energy Development Board (AEDB) has launched a tender to deploy 600 MW of PV capacity. It said the new solar projects will be built in the districts of Kot Addu and Muzaffargargh, Punjab province.
Selected developers will be expected to build the plants on a build, own, and operate transfer (BOOT) basis. They have until May 8 to submit project proposals. The deadline was originally set for April 17.
According to the latest statistics from the International Renewable Energy Agency (IRENA), Pakistan had 1,234 MW of installed PV capacity by the end of 2022. Last year, the nation newly installed 166 MW of solar capacity.
NEPRA, the country's energy authority, recently granted 12 generation licenses, with a total capacity of 211.42 MW. Nine of those approvals were granted to solar projects with a total capacity of 44.74 MW.
In May, NEPRA launched the Competitive Trading Bilateral Contract Market (CTBCM), a new model for Pakistan’s wholesale electricity market. The Central Power Purchasing Agency said the model will “introduce competition in the electricity market and provide an enabling environment where multiple sellers and buyers can trade electricity.”
https://www.nation.com.pk/18-May-2023/unilever-pakistan-announces-its-partnership-with-k-solar
LAHORE-Unilever Pakistan has announced its partnership with K-Solar, a subsidiary of KE, to transition its operations to solar energy in Rahim Yar Khan and Karachi. This initiative represents a significant step towards achieving Unilever’s ambitious sustainability goals, including net zero emissions in its operations by 2039. Simultaneously, the firm will shed close to PKR 84 million a year in energy costs, facilitating the local economy by considerably reducing the strain on the national grid collectively generating approx. 2.3 million Kwh through renewable sources.
Unilever Pakistan’s Solar Captive Power Plant Phase 2 installation demonstrates their dedication to renewable energy solutions, leading to significant savings and CO2 reductions. At Futehally Chemicals Limited (FCL), the factory that manufactures Surf Excel for Unilever, the 362 kW system will save 496,035 kWh annually, reducing costs by approximately 18 million PKR and CO2 emissions by 233 metric tons. The 1000 kW installation at Rahim Yar Khan Factory will save 1,430,886 kWh, saving approximately 53 million PKR and a CO2 reduction of 662 metric tons per year. The 250 kW system at Rahim Yar Khan Estate will save 357,721 kWh, resulting in cost savings of 13 million PKR and a CO2 reduction of 165 metric tons annually. Unilever Pakistan’s investment in these projects reinforces their commitment to sustainability.
While Unilever’s own factories, offices, research labs, data centers, warehouses, and distribution centers account for only 2% of its total greenhouse gas footprint, the company acknowledges the significance of these emissions and is committed to eliminating them entirely. Abdul Hannan Ahmed Khan, Head of Supply Chain at Unilever Pakistan, expressed his enthusiasm for this collaboration, stating, “Unilever Pakistan is deeply committed to sustainable practices and minimizing our impact on the environment. This solar project is a testament to our dedication to combat climate change and create a brighter, cleaner future. By investing in renewable energy, we are not only reducing our carbon emissions but also driving positive change in the communities we operate in.”
Hashim Raza, CEO of K-Solar, emphasized the significance of joint efforts in realizing a sustainable energy future. He stated, “We are thrilled to partner with Unilever Pakistan on this journey. By combining Unilever’s leadership in sustainability and K-Solar’s expertise in renewable energy solutions, we are confident that we can make a substantial impact in reducing carbon emissions and promoting the use of clean energy sources.”
19-kilowatt mini-grids powered by solar energy installed in Ishaq Jokoi
https://tribune.com.pk/story/2411592/solar-grids-bring-relief-to-sindh
Indus Earth Trust (IET), an organisation promoting green energy, has provided a life-changing solution for residents of Ishaq Jokio, a small settlement in the Sindh province of Pakistan.
The 19-kilowatt mini-grids powered by solar energy have transformed the lives of people, who have been accustomed to enduring long hours of power cuts during peak consumption in summer.
“Villages were selected according to a needs assessment survey, while the villagers provided the land where the 19-kilowatt mini-grids were installed. In this hamlet caressed by the sea breeze from the Arabian Sea, panels bred prosperity,” reported the China Economic Net.
According to the State of Industry reports from the National Electric Power Regulatory Authority (NEPRA), homes consume 50% of the total electricity delivered, and this demand is largely driven by cooling and lighting. The demand is estimated to increase from 106 terawatt-hour (TWh) in 2020 to 234 TWh in 2030, representing a 121% increase due to the rise in temperatures from climate change.
Pakistan’s energy problems have been exacerbated manifold by the Russia-Ukraine conflict and the global supply crisis. Pakistan’s fuel import bill surged to $23 billion in FY2021-22, a 105% increase from the previous financial year. The country’s per capita annual electricity consumption of 644 kilowatt-hour (kWh) is among the lowest in the world, which is only 18% of the world average, 7% of the developed countries’ average.
However, Pakistan’s efforts to embrace photovoltaics at all levels have started to pay off. Pakistan imported about $1.2 billion in photovoltaic modules in the last fiscal year, and in 2022, China’s photovoltaic module exports to Pakistan reached approximately $870 million, with a total installed capacity of 3.2GW, a year-on-year increase of 54% and 37%, respectively, said Liu Yiyang, Deputy Secretary-General and Press Spokesperson of China Photovoltaic Industry Association (CPIA). The Pakistan Solar Association (PSA) forecasted that the country’s import demand for photovoltaic products this year will be around $1.8 billion.
“Pakistan’s Solar Energy Market is expected to record a CAGR of 2.5% during the period from 2022 to 2027, with Net Metering-Based Solar Installations and Power Generation growing by 102% and 108% respectively,” said a KTrade Securities analyst.
A World Bank study in 2020 urged Pakistan to urgently expand solar and wind “to at least 30% of electricity generation capacity by 2030, equivalent to around 24,000 MW.” This provides huge opportunities for growth as currently, as of December 2022, Pakistan’s total domestic installed power capacity is 43,775 MW, of which photovoltaic installed capacity is 630 MW, accounting for about 1.4% only.
China’s efforts are also reaching millions of households in remote areas in the form of micro-power plants. Out of the $144 million foreign investment in PV plants in Pakistan, $125 million is from China, accounting for nearly 87% of the total.
“Pakistan and China are a perfect match for collaboration on renewable energy (solar PV) as China is a globally known giant when it comes to renewable energy technology, while Pakistan needs to move away from thermal to renewable for power generation,” stated a KTrade Securities solar PV industry report.
Recently, the Pakistan Solar Association (PSA) sent an official letter adjuring the federal government to ask SBP and other commercial banks to help in the solar imports through an annual limit of USD 800 million at a time when Pakistan is facing a renewable energy sector that is growing rapidly. The letter also urged the government to take steps to promote local manufacturing of solar panels to reduce reliance on imports and create job opportunities for the local population.