Pakistan Solar Net Metering Installations Have More Than Doubled Since Last Year
Nearly 4,000 new net metering licenses have been issued in Pakistan in the July-September quarter, up from 2,000 in the same quarter last year. Vast majority of these are for solar photo-voltaic installation. Net metering solar installations are in addition to the rapidly growing off-grid solar panels across Pakistan. Higher electric utility (DISCO) bills and lower cost of solar panels appear to be driving the adoption of solar in Pakistan. Net metering allows users with private renewable energy production plants to connect to the electric grid and sell excess power to the local electric utility or DISCOs such as K-Electric, LESCO or IESCO in Pakistan.
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| Net Metering Installations in Pakistan. Source: Jeremy Higgs |
This year has seen the fastest growth in net energy metering (NEM) growth since Pakistan launched its first NEM policy in 2015, according to data shared by Jeremy Higgs, director of operations for Islamabad-based EcoEnergy. Total number of net metering installations in Pakistan is about 16,000, according to Jeremy Higgs. National Electric Power Regulatory Authority (NEPRA) issued 3,334 net metering licenses with total installed capacity of 56.86 megawatt under the net-metering regime during 2019-20, according to an October, 2020 news report.
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| Net Metering Installations By DISCOs in Pakistan. Source: Jeremy Higgs |
Surprisingly, Pakistan's biggest city Karachi is lagging significantly behind Lahore and Islamabad in net metering licenses. Nearly 25% of all net metering licenses in Pakistan were issued by LESCO (Lahore Electric Supply Company) in the July-September quarter. IESCO (Islamabad Electric Supply Company) has handed out 20% and K-Electric (Karachi Electric) 15%.
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| Top 10 Solar Energy Countries in 2017. Source: USAID |
Back in 2017, Pakistan was ranked among the top 10 countries for investment in solar PV projects below 1 MW. Pakistan PSLM/HIES 2018-19 survey results revealed that 15.2% of all households are using solar panels as a source of energy for their homes.
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| Pakistan Solar Panel Imports in Millions of US Dollars. Source: FBS Via Pakistan Today |
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.
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Comments
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.
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.
@bilalgilani
According to the data compiled by the German Agency for Development Cooperation (Pakistan), about 18,000 distributed generators had net-metering licences as of December 2021.
Of them, more than 15,000 were issued only in 2020 and 2021.
https://twitter.com/bilalgilani/status/1523287878109130752?s=20&t=Aa_-FLYCD7MSNurPHJYayQ
https://www.dawn.com/news/1679520
Under the provisions, the tube-well connections seeking net metering on a load up to 25kW will not require permission from the National Electric Power Regulatory Authority (Nepra) for the grant of generation licence, Dawn has learnt.
The facility will not only convert most such connections on solar but also enable consumers to produce and use the electricity on their own besides selling the additional/surplus to the respective Discos. It will also control the technical and commercial losses (power losses either due to theft or technical reasons).
“The tube-well connections can be converted to net-metering but the response was not good due to considerable investment (around Rs2 to 3 million on each connection), lack of loaning facility and awareness. Now the SBP has announced a loaning facility on a six per cent markup for launching such small schemes,” explained Lahore Electric Supply Company’s Market Implementation and Regulatory Affairs Director-General Altaf Qadir while talking to Dawn.
Moreover, the increasing power tariff due to fuel price adjustment and other issues have forced consumers having tube-well connections to contact us in this regard,” he added.
The net metering project had been launched in 2016 countrywide. It allows any domestic, commercial, industrial and other consumers having at least a three-phase meter connection to be part of the power generation system by installing it on his/her premises (house, shop, factory, open spaces, etc). Under the arrangements, such a consumer may sell the additional energy to the respective power distribution company and make stocktaking (calculations) with it at the end of the month.
Since the system allows the consumers to generate electricity from one kilowatt to one megawatt, Nepra issues licences to the applicants residing in the service area jurisdiction of all distribution companies. Before issuance of the licence, the respective companies are supposed to receive, scrutinise and process such applications.
According to Mr Qadir, there are hundreds of thousands of tube-well connections in the service areas of all nine Discos including Lesco, Faisalabad Electric Supply Company (Fesco), Multan Electric Power Company (Mepco), Gujaranwala Electric Power Company (Gepco), Islamabad Electric Supply Company (IESCO), Peshawar Electric Supply Company (Pesco), Tribal Area Electric Supply Company (Tesco), Quetta Electric Supply Company (Qesco), Sukkar Electric Power Company (Sepco) and Hyderabad Electric Supply Company (Hesco).
It may be mentioned that most of such connections exist in a vast rural area of Mepco. The number here ranges between 60,000 to 70,000. Similarly, Lesco has 25,000 to 30,000 connections and most exist in the areas of its Kasur and Okara circles. Qesco, Gepco, Pesco, Hesco, Sepco and other companies also have a large number of such connections.
Answering a question Mr Qadir said Lesco has so far processed as many 6,000 net metering related applications out of which most (equaling to 100MW or so) have been issued generation licence by Nepra.
https://www.dawn.com/news/1700918
The solar net-metering power generation has reached 419MW (approximately) with a considerable number of consumers switching to solar across the country.
With around 149MW, Lahore Electric Supply Company (Lesco) stands first among 10 power distribution companies (Discos), Dawn has learnt.
The net-metering project had been launched in 2016 countrywide. It allows any domestic, commercial, industrial and other consumers having at least a three-phase meter connection to be part of the power generation system by installing it on his/her premises (house, shop, factory, open spaces, etc). Under the arrangements, such a consumer may sell the additional energy to the respective power distribution company and make stocktaking (calculations) with it at the end of the month. Since the system allows the consumers to generate electricity from one kilowatt to one megawatt, Nepra issues licences to the applicants seeking generation below 25kW in the service area jurisdiction of all distribution companies. Before issuance of the licence, the respective companies are supposed to receive, scrutinise and process such applications.
According to an official document, Lesco, since launch of the project in 2016, received total 10,176 applications as of June, 2022 for issuance of licences for cumulative generation of around 185.975MW. The total 10,176 application included 9,561 for the generation below 25kW and 615 of over 25kW. Of these, 9,183 connections were installed and billing started to 7,288 generating total 148.853MW (148,853kW).
Gujranwala Electric Power Company (Gepco) got total 1,528 applications for net-metering connections having a cumulative generation of 41.708MW (41,708kW) that included 1,288 and 240 seeking below 25kW and over 25kW generation. Of these, 1,446 connections were installed with billing started to 1,402 with initiation of 40.717MW.
In Faisalabad Electric Supply Company (Fesco), the authorities received total 2,614 applications (2,286 below 25kW and 328 over 25kW) for generation of 56.681MW (56,681 kW). Here total 2,195 connections were installed and billing started to 1,856 connections having cumulative generation of 44.604MW (44,604kW).
Islamabad Electric Supply Company (Iesco) received total 6,398 applications (79.653 MW/79653kW) including 6,163 and 235 of below and over 25kW respectively. As many as 6,078 connections were installed and billing started to 5,377 having total generation of 72.570MW (72,570kW).
Multan Electric Power Company (Mepco) got 4,232 applications having cumulative generation of 104.358MW (104,358kW) that included 3,756 and 474 of below and over 25kW respectively. As many as 3,844 connections were installed after which billing started to 3,463 having generation of 77.737MW (77,737kW).
In the areas of Peshawar Electric Supply Company (Pesco), total 1,847 applications (1744 and 103 of below and over 25kW) seeking a cumulative power generation of 27.640 MW (27,640kW) were received out of which 1,847 connections were installed with billing initiated to 1,463 applicants generating 26.304MW (26,304kW).
On the other hand, the response to the net-metering project remained lukewarm in the areas of Hyderabad Electric Supply Company (Hesco), Sukkur Electric Supply Company (Sepco), Quetta Electric Supply Company (Qesco) and the Tribal Area Electric Supply Company (Tesco). The consumers in the areas of the aforementioned companies made a generation of 2.673MW, 3.768MW, 1.021MW and 500kW, respectively.
Bilal I Gilani
@bilalgilani
During July-Mar FY2022, a total of 10,783 net metering based systems of 196.77 MW
capacity were installed by different segments of consumers. As of 31st December, 2021, net-metering based solar installations had reached up to 17,950 with a
cumulative capacity of 305.79 MW.
https://twitter.com/bilalgilani/status/1607487467828944897?s=20&t=vdNAhE-JuhPHvxZ_JDofoA
https://pakobserver.net/over-3500-applications-for-net-metering-pending-in-discos/
As many as 3,521 applications for Net-Metering are currently pending in all power distribution companies (DISCOs).
These applications were pending in various distribution companies including Islamabad Electric Supply Company, Lahore Electric Supply Company, Multan Electric Supply Company, Gujranwala Electric Supply Company, Sukkur and Hyderabad Electric Supply companies and Peshawar Electric Supply Company.
According to official of Power Division, all net metering applications are being facilitated as per National Electric Power Regulatory Authority (NEPRA’s) regulations and Alternative Energy Development Board (AEDB) guidelines which are already included in the standard operating procedures (SOPs) of DISCOs.
Power Division has also issued instructions to all DISCOs for timely processing of Net-Metering applications. Net metering connections are installed within the specified time period and no such delays or hurdles are created by DISCO.
A dedicated team of Market Implementation & Regulatory Affairs Department (MIRAD)/ concerned Superintending Engineer are closely monitoring the whole process of net metering connections in all DISCOs for timely execution. He said in order to facilitate consumers, DISCOs have allowed for self-purchase of Bi-Directional energy meters for net metering from approved manufactures. NNI
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-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.
https://renewablesnow.com/news/oracle-power-powerchina-team-up-on-1-gw-solar-project-in-pakistan-820530/
UK coal and gold mining projects developer Oracle Power PLC (LON:ORCP) and Power Construction Corporation of China (SHA:601669), also known as PowerChina, have agreed to partner in the potential joint development of a 1-GW solar project in the desert of southeastern Pakistan.
The Thar Solar Project will be based on the unutilised land at Oracle's Thar Block VI coalfield in the Sindh Province, which is located about 250 kilometres (155.3 miles) from the proposed site of the company’s green hydrogen project in the region.
The facility is expected to be equipped with about 1.5 million photovoltaic (PV) panels, providing an installed capacity of 655 watts per panel and generating about 1.7 billion kWh annually, a statement said on Wednesday.
Oracle has already obtained conditional permission from the local Sindh government to build solar plants at its 66.1-square-kilometre Thar Block VI.
The power to be produced from the solar plant could be injected into the national grid or sold to the grid of a private distributor. It could also be utilised to reduce the carbon footprint at other coalfields within the Thar Coal Power Project.
Under the cooperation agreement, the Chinese partner will help Oracle study the feasibility of the project and coordinate work with the government of China. The UK-based firm, in turn, will work on securing the funding of the project and also coordinate ongoing negotiations with the governments of Sindh and Pakistan.
“We look forward to working closely with our partners to swiftly establish ourselves as front runners in the production of renewable power and green energy solutions in Pakistan and in the broader region,” Oracle’s CEO Naheed Memon said in the statement.
The UK-based firm, which is focused on Western Australia and Pakistan, is also working on a 1.2-GW solar, wind and green hydrogen project in Sindh.
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.
https://www.euronews.com/green/2023/06/13/spain-germany-poland-which-european-countries-added-the-most-solar-power-in-2022
Where are the major solar countries?
More countries than ever are real “solar contenders”, the report shows.
In 2022, the number of major solar countries - defined as those installing at least 1 GW annually - grew from 12 to 26. By 2025, the report predicts that more than 50 countries will be installing more than 1 GW of solar per year.
European countries make up 12 of the solar heavyweights, led by Spain, Germany, Poland, the Netherlands and Italy.
Poland’s solar development has flown past expectations. It’s mostly due to a surge in small rooftop ‘prosumer’ systems that enable homeowners to be rewarded for producing as well as consuming energy.
Ranked by the amount of extra solar they installed last year, here is the full list of the 26 major solar powers:
1. China
2. US
3. India
4. Brazil
5. Spain
6. Germany
7. Japan
8. Poland
9. The Netherlands
10. Australia
11. South Korea
12. Italy
13. France
14. Taiwan
15. Chile
16. Denmark
17. Turkiye
18. Greece
19. South Africa
20. Austria
21. UK
22. Mexico
23. Hungary
24. Pakistan
25. Israel
26. Switzerland
https://profit.pakistantoday.com.pk/2023/02/25/community-solar-subscriptions-can-reduce-electricity-costs-for-consumers/
Rooftop solar installations have been a success story in Pakistan for the past few years, with more than 20,000 net metering licenses issued by the end of 2021-22, adding 450MW to the system. The 10x reduction in solar panel prices during the last decade, steep escalation in electricity tariffs, and net metering have made solar installation one of the best investments, with a payback of fewer than four years, while providing an excellent hedge against inflation and tariff escalation. Advanced LFP (Lithium Ferrous Phosphate) batteries, with 15 plus years life, are also becoming financially feasible for peak hours use with imminent peak rate hike.
Despite the success of rooftop solar, there is still much room for growth. There are 610,000 households in Pakistan using 700 plus units and 16.8 million households consuming 300-700 units on average per month. The country can easily achieve at least 10,000MW of rooftop solar installations on just 5 percent of these houses during the next five years by continuing with the current net metering and export rate incentives.
For households using 500–700 units per month, rooftop installations can be accelerated by providing incentives such as reinstating low-cost loans, removing current limitations on net metering, and eliminating 17pc general sales tax on solar equipment for 10KW or smaller installations. However, rooftop solar is not a practical option for lower-income households (300–500 units per month consumption) because of higher cost per kilowatt for a smaller system, financial constraints, roof space availability, rental housing, and apartment living.
This is where community solar comes in as a practical and lower cost solution for these households and industrial facilities. In the community solar subscription model, consumers either purchase or rent a small portion of a large solar farm operated by the utility or a private developer. For example, for a 100 MW solar farm located near an industrial zone, multiple industrial facilities can purchase 20pc of this farm’s capacity (20MW), providing equity investment, while the remaining 80pc (80MW) can be subscribed (rented) by 80,000 low usage household (300-500 units) customers with a limit of 1KW for each.
Because of economies of scale, the per kilowatt cost of these solar farms is 15-20pc lower than a rooftop system, thus reducing the purchase or rental cost. Also, since the industry will be providing equity investment, there won’t be a need to find large investors for these solar farms.
https://tribune.com.pk/story/2420254/can-pakistan-capitalise-on-solar-as-it-becomes-popular
In recent years, Pakistan has witnessed substantial investments in solar power projects, both domestic and foreign. It has introduced a financing scheme for renewable energy to make financing available for consumers in the private sector to invest in renewable electricity generation. Until February 2022, SBP had provided Rs74 billion (about $400 million) in financing to over 1,175 projects with a combined capacity of 1,375 MW in renewable energy.
The World Bank also reports that Pakistan has a potential of 40 GW of solar power and has set a target of achieving 20% of its electricity from renewable sources by 2025.
Pakistan has been heavily reliant on fossil fuels, particularly oil and gas, for power generation. However, the power production mix has undergone some changes in recent years.
According to the Pakistan Bureau of Statistics (PBS), as of 2020, fossil fuels accounted for approximately 63% of the total power generation, followed by hydropower at 29%, nuclear energy at 5%, and renewable energy at around 3%.
Despite its vast potential for solar energy, Pakistan has only scratched the surface of its capabilities. The country is blessed with abundant sunshine, making it an ideal location for solar power generation. Pakistan’s government, recognising the importance of renewable energy, has introduced favourable policies and incentives to promote solar energy development. The Alternative Energy Development Board (AEDB) offers net metering and feed-in tariffs to encourage residential and commercial solar installations.
The increasing attractiveness of solar energy is expected to drive significant capital investment in Pakistan. Foreign direct investment (FDI) in the renewable energy sector has already been on the rise. Solar projects, including large-scale solar farms and distributed solar installations, offer lucrative investment opportunities. The China-Pakistan Economic Corridor (CPEC) has also played a crucial role in fostering solar energy cooperation between the two countries.
Several challenges need to be addressed to fully harness Pakistan’s solar energy potential. These challenges include the high initial costs of solar installations, limited access to financing, lack of awareness about solar energy benefits, and inadequate grid infrastructure.
To overcome these obstacles, the current government is working on a new 25-year energy policy that seeks to have 20-30% of all energy derived from renewable energy sources by 2030. The policy also aims to reduce dependence on imported fuel products and increase the share of indigenous resources.
The current government has approved the Alternative and Renewable Energy Policy 2019, which provides incentives and facilitation for renewable energy projects. The previous government also faced challenges in implementing the National Electricity Policy 2021, which was approved by the Council of Common Interests in February 2021.
The policy aimed to ensure affordable, reliable and sustainable electricity supply for all consumers, but faced resistance from some provinces and stakeholders over issues such as tariff determination, power sector governance and distribution reforms. The shift towards solar energy as an attractive investment option signifies a significant turning point in Pakistan’s power production landscape. The country has ample solar resources that can be harnessed to reduce its dependence on fossil fuels, enhance energy security, and contribute to environmental sustainability.
With supportive government policies, increased foreign investment, and technological advancements, solar energy has the potential to revolutionise Pakistan’s power generation sector.
https://www.pv-tech.org/oracle-power-powerchina-to-build-1gw-solar-pv-plant-in-pakistan/
Located in Oracle’s Thar Block VI land – where it is currently developing a coal minefield – the project will be built in the southeast province of Sindh.
The agreement includes a feasibility study both companies will conduct, however, Oracle has not disclosed any date for the commercial operation of the solar project.
Power generated from the plant will either be integrated into the national grid or sold through power purchase agreements.
Oracle Power has been active in Pakistan lately where it signed a memorandum of understanding (MoU) with Chinese state-owned China Electric Power and Technology for the potential development, financing, construction, operation and maintenance of a green hydrogen project in the Sindh Province.
Along with the construction of a green hydrogen facility, the MoU also includes the development of a hybrid project with 700MW of solar PV, 500MW of wind power and an undisclosed capacity for battery storage.
The 1GW solar PV project with PowerChina will be located 250 kilometres away from the proposed green hydrogen project Oracle aims to build in Pakistan.
Naheed Memon, CEO of Oracle, said: “The proposed development of the Thar Solar Project provides Oracle with the opportunity to not only develop a sizeable renewable energy project in Pakistan, but also to bring a long-term and sustainable business to our Thar Block VI asset.”
These solar plants will generate 10,000 megawatts of electricity under the initiative, saving Pakistan's billions of dollars.
https://www.globalvillagespace.com/10000mw-solar-power-plants-to-be-installed-before-summers-2023/
The prime minister directed that work on the project begin immediately in order to bring respite to the masses before the next summer season begins.
These solar plants will generate 10,000 megawatts of electricity under the initiative, saving Pakistan’s billions of dollars.
In the initial phase, the electricity generated will be distributed to government buildings, tube-wells, and families that utilize less units of electricity.
He has also directed that a conference be held next week to solicit bids for the project.
The prime minister, who presided over a conference in Islamabad to bring huge relief to the people, stated that solar energy should be used instead of imported oil. The decision was taken with an aim to save the foreign exchange rate as the country would not need to spend billions of dollars on importing fuel for electricity generation.
He urged that the project be implemented as soon as possible by the relevant authorities.
The situation of loss in income and rising electricity bills makes a huge economic and financial burden on households. Skyrocketing electricity bills have blown the minds of consumers.
Consumers strongly condemned skyrocketed electricity bills in the month of August, even during long hours of unscheduled load shedding followed by blackouts by Islamabad Electric Supply Company (Iesco) and demanded that the federal government take up this burning issue immediately.
The Rawalpindi bench of the Lahore High Court (LHC) Tuesday suspended the collection of fuel price adjustment in electricity bills.
Justice Jawad Ul Hassan, while hearing the writ petition filed against the increase of taxes, directed WAPDA and NEPRA not to charge tax on consumers’ electricity bills. The judge also summoned the head of IESCO on September 15 and issued notices to the parties concerned to appear before the Court on the next hearing.
https://solarquarter.com/2023/07/20/longi-and-nimir-energy-forge-strategic-partnership-to-advance-solar-energy-solutions-in-pakistan/
LONGi and Nimir Energy announced the signing of a Memorandum of Understanding (MOU) aimed at fostering collaboration in the development and deployment of solar energy solutions. This strategic partnership marks a significant milestone in the pursuit of sustainable and clean energy sources to meet Pakistan’s growing energy demand.
Under the terms of the MOU, Nimir Energy and LONGi will work together to explore opportunities and synergies in solar energy projects and capacity-building initiatives. The collaboration will leverage Nimir Energy’s expertise in project development and LONGi’s cutting-edge solar technology to drive the adoption of renewable energy in pan-Pakistan, pushing the government’s intent to promote solar.
Nimir Energy is part of Nimir Group, providing services in renewable energy with a primary focus on solar EPC for industrial, commercial and residential users. Nimir Group has been serving Pakistan and its business community since 1964 with a diversified range of products.
With climate action in full swing, Nimir would like to play a positive role in bringing in the right resources to ensure Pakistan’s transition to clean and sustainable energy. The company’s commitment to sustainable development aligns perfectly with LONGi’s vision to enable the world to transition to a low-carbon future through its industry-leading solar products and solutions.
LONGi, renowned for its high-efficiency solar modules and advanced photovoltaic technology, has emerged as a global leader in the solar industry. By joining forces with Nimir Energy, the company aims to expand its reach and accelerate the development of solar energy projects in key markets around the world.
“We are delighted to enter into this strategic partnership with LONGi, a company that shares our commitment to advancing renewable energy solutions,” said Waqas Ahmed Rana, COO of Nimir Energy. “Through this collaboration, we will combine our strengths and resources to drive innovation and promote the widespread adoption of solar energy, contributing to a more sustainable future.”
“LONGi is excited to join forces with Nimir Energy, a respected player in the renewable energy sector,” stated Ali Majid, Country head, Sales of LONGi. “Together, we can unlock new opportunities and create lasting impact by accelerating the deployment of solar energy projects worldwide. This collaboration exemplifies our dedication to addressing the challenges of climate change through technology innovation and sustainable business practices.”
With 90 terawatt-hours of total energy needed, Pakistan ranks among the top countries with huge potential for solar energy. Rising electricity prices and instability in the grid have added further to the woes of the average Pakistani consumer. LONGi envisions solving this problem by providing a cost-effective and high-quality solution to the public at large. As the biggest panel manufacturer in the world, LONGi plans to cater to all kinds of consumers with a focus on industrial users to provide services unparalleled in the market.
https://solarquarter.com/2023/08/14/kuwaits-enertech-holding-explores-renewable-energy-cooperation-with-pakistans-k-electric/
Kuwait-based energy firm EnerTech Holding is actively exploring collaboration and investment prospects with Pakistan’s K-Electric power supply company.
The objective is to expedite Pakistan’s shift to renewable energy sources, according to a joint statement released by the two entities this week. Pakistan’s energy imports, accounting for 30.7% of total imports, reached $17 billion during the previous fiscal year (2022-23).
To curtail its dependency on imported fossil fuels and conserve foreign currency, Pakistan aims to raise the proportion of clean energy in its energy mix to 60% by 2030, a considerable increase from the current 4% attributed to renewable sources.
Abdallah Al-Mutairi, the CEO of EnerTech Holding, expressed enthusiasm about K-Electric’s ambitions in line with Pakistan’s renewable energy vision. He stressed the potential of collaboration between EnerTech’s expertise and K-Electric’s legacy in driving substantial progress towards these goals.
K-Electric envisions catering to around five million customers with an electricity demand of 5,000 megawatts (MW) by 2030. The company aims to meet up to 30% of this demand through renewable energy, reducing reliance on imported fuels for electricity generation and benefiting the national economy.
Moonis Alvi, the head of K-Electric, highlighted the opportunity to work closely with global entities like EnerTech, possessing an established international presence and investment portfolio. This collaboration can facilitate the adoption of best practices, thus enhancing energy delivery to customers while promoting a greener and more sustainable future.
EnerTech Holding, a subsidiary of the National Technology Enterprises Company (NTEC) and an extension of the Kuwait Investment Authority, spans across 65 countries. Its collaboration with K-Electric aligns with both entities’ dedication to advancing sustainable energy solutions.