Tuesday, May 12, 2020

Renewable Energy in Pakistan: 15.2% of Households Use Solar

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

Solar Panels in Pakistan: 

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

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

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

Pakistan Electric Vehicle Policy:

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

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


Vehicle Ownership in Pakistan. Source: PBS

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

Low Carbon Energy Growth:

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

Non-Hydro Renewables in Pakistan. Source: Fitch Solutions

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

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

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

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

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

Chinese BYD in Pakistan:

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

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

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

Summary: 

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

Related Links:

Haq's Musings

South Asia Investor Review

Clean Energy Revolution in Pakistan

Pakistan Electric Vehicle Policy

Nuclear Power in Pakistan

Recurring Cycles of Drought and Floods in Pakistan

Pakistan's Response to Climate Change

Massive Oil and Gas Discovery in Pakistan: Hype vs Reality

Renewable Energy for Pakistan

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

LNG Imports in Pakistan

Growing Water Scarcity in Pakistan

China-Pakistan Economic Corridor

Ownership of Appliances and Vehicles in Pakistan

CPEC Transforming Pakistan

Pakistan's $20 Billion Tourism Industry Boom

Riaz Haq's YouTube Channel

PakAlumni Social Network

17 comments:

Omar said...

Well, past governments have signed inflated contracts with electric companies so to prevent being charged unfair amount people will naturally move towards solar to reduce or eliminate the bill.

Riaz Haq said...

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

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

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

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

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

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

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

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

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

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

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

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

Imran Q. said...

What is the solar panel cost / maintenance of running a two bedroom apartment in Pakistan with fans and lights in each room, couple of computers, TV and a Refrigerator.

Riaz Haq said...

Imran: "What is the solar panel cost / maintenance of running a two bedroom apartment in Pakistan with fans and lights in each room, couple of computers, TV and a Refrigerator."

About Rs 106,000 for 540W system:

Solar Panel: Rs. 100 per watt = Rs. 100 x 540 = Rs. 54,000
Inverter – we will need 1KW inverter = Rs. 26,000
Batteries: 2 x 200 Amp batteries: Rs. 13,000 x 2 = Rs. 26,000
Total Cost: Rs. 54,000 + Rs. 26,000 + Rs. 26,000 = Rs. 106,000 https://www.phoneworld.com.pk/energy-efficient-and-a-better-investment/

Riaz Haq said...

#China ignores #India over world's highest Diamer-Bhasha #dam project in #Pakistani #Kashmir. #Islamabad gets #Beijing funds for joint venture opposed by #Delhi. It will generate 4,500 MW of #power & store 8 million acre-feet of #water. #RenewableEnergy

https://asia.nikkei.com/Spotlight/Belt-and-Road/China-ignores-India-over-dam-project-in-Pakistani-Kashmir


Riaz Haq said...

#China ignores #India over world's highest Diamer-Bhasha #dam project in #Pakistani #Kashmir. #Islamabad gets #Beijing funds for joint venture opposed by #Delhi. It will generate 4,500 MW of #power & store 8 million acre-feet of #water. #RenewableEnergy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riaz Haq said...

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

Special Assistant to Prime Minister on Information and Broadcasting General (retd) Asim Saleem Bajwa Wednesday said work on the Suki Kinari hydal power project was in full swing as progress on the project remained unaffected due to COVID-19.
In a tweet, Asim Bajwa who is also Chairman, China Pakistan Economic Corridor Authority (CPECA) said, 19.5 percent work on the 874 MW power project had been completed.
He said the project was being established at Kunhar River with an investment of
US $ 1.963 bn under the umbrella of China Pakistan Economic Corridor.
He informed that the project had so far created 4,250 job opportunities and
after completion it would help reducing cost of electricity.
“Bringing cost of electricity down is top priority of the government,” he added.

Riaz Haq said...

#WorldBank approves US $700m for 4,320 MW Dasu #hydropower project in #Pakistan. Loan will be used to build transmission line and complete the 2,160MW first phase of the plant. Total project cost: cost US $4.2 billion.
https://constructionreviewonline.com/2020/04/world-bank-approves-us-700m-for-4-32gw-dasu-hydropower-project-in-pakistan/ via @Construction Review Online

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

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

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

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

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

Furthermore, World Bank Task Team Leader Rikard Liden added that the Dasu hydropower plant has a low environmental footprint and is considered to be one of the best hydropower projects in the world. “It will contribute to reducing Pakistan’s reliance on fossil- fuels and producing clean renewable energy,” he affirmed.

Riaz Haq said...

#China's Goldwind books 50-MW #WindEnergy turbines order in Jhimpir, #Sindh, #Pakistan in an area identified as a “wind corridor” with 1000 MW of wind power capacity installed. Golwind expects to install 150 MW of turbines in Pak in coming years #renewable https://www.renewablesnow.com/news/goldwind-books-50-mw-turbine-order-in-pakistan-701129/

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

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

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

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

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

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

Riaz Haq said...

#Pakistan’s installed #power capacity soars. With the addition of 3,933 Megawatt (MW) in 2019-20, installed capacity has jumped from 37,402MW to 41,335MW. #Fuel mix is 49.1% from indigenous resources and 50.9% from imported fuels. #electricity #energy https://tribune.com.pk/story/2242155/2-pakistans-installed-power-capacity-soars/

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.

Riaz Haq said...

#Pakistan aims to generate 30% of its #electricity from #RenewableEnergy sources by 2030, including #wind, #solar, #biomass and small-scale #hydro https://tribune.com.pk/story/2250399/1-pakistan-aims-generate-30-clean-energy-2030/

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.”

Riaz Haq said...

#CPEC Re-Emerges In #Pakistan With Flurry Of Major #China Deals: 2 #hydropower projects costing $3.9 billion, and another to revamp Pakistan's colonial-era railways for $7.2 billion -- the most expensive #Chinese project yet in Pakistan. https://www.ndtv.com/world-news/belt-and-road-re-emerges-in-pakistan-with-flurry-of-china-deals-2263687 via @ndtv

China's Belt and Road program has found new life in Pakistan with $11 billion worth of projects signed in the last month, driven by a former lieutenant general who has reinvigorated the infrastructure plan that's been languishing since Prime Minister Imran Khan took office two years ago.
The nations signed deals on June 25 and July 6 for two hydro-power generation projects costing $3.9 billion in the Pakistan-occupied Kashmir region, and another to revamp the South Asian nation's colonial-era railways for $7.2 billion -- the most expensive Chinese project yet in Pakistan.

Khan's government appointed Asim Saleem Bajwa last year to run the China-Pakistan Economic Corridor Authority, which oversees more than $70 billion in projects from power plants to highways.

He also joined Khan's cabinet in late April, becoming one of more than a dozen former and current military officials in prominent government roles as the army expands its influence in the country.

The Chinese financing has helped rid Pakistan of an electricity deficit that left exporters unable to meet orders and major cities without electricity for much of the day. Still, the implementation of some investments appeared to stall since Khan came to power, with no new projects announced in 2018 and very few in 2019.

Since Chinese President Xi Jinping launched the initiative in 2013, the World Bank estimates about $575 billion worth of energy plants, railways, roads, ports and other projects have been built or are in the works across the globe. Its progress has slowed recently, dogged by accusations that China is luring poor countries into debt traps for its own political and strategic gain.

"The reality is that much of CPEC, like the Belt and Road more broadly, has been paralyzed," said Jonathan Hillman, a senior fellow at the Center for Strategic and International Studies in Washington, referring to the China-Pakistan Economic Corridor. Pakistan "is a flagship for China's Belt and Road, so the need to show progress is even more important."

In a tweet last month, Bajwa said some detractors had given the "false impression" that CPEC had been slowed. Not only has the pace of work on projects picked up recently, but a great deal of ground work has been done to launch phase two of the project that also includes special economic zones to lure Chinese manufacturers, agriculture, science, technology and tourism, he wrote.

"The prime minister pushed very hard on this," said Abdul Razak Dawood, Khan's adviser on commerce and investments said by phone. "We feel that we have to get more and more hydro in our energy mix."

A spokesman in Bajwa's office said he was not immediately available to comment.

Little Progress

Pakistan's army is already responsible for securing every single Beijing-funded project scattered across the country, from the mountains near the Chinese border to the desert in Gwadar where the Chinese operate a port. Its role has become even more important following terrorist attacks on three Chinese-related projects in the past year.

"There is no doubt that PM Khan's arrival slowed the pace of CPEC projects," said Mosharraf Zaidi, a senior fellow at Islamabad-based think tank, Tabadlab, and a former principal advisor to the foreign ministry. "The renewed energy and approval we are now seeing is almost entirely likely due to the chairperson having settled in, and being added to Prime Minister Khan's cabinet."

Riaz Haq said...

#Pakistan's Rural Transformation With #Education, #Remittances, #Healthcare & #Communications: Motorized Vehicles replacing horses & bulls, sturdy brick/cement replacing mud houses, TVs & Mobile Phones everywhere, Migrant workers bringing money & ideas. https://www.thenews.com.pk/print/685889-changing-landscape-of-village-life-in-pakistan

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.

Riaz Haq said...

State Bank of #Pakistan goes green, expands #renewable energy financing scheme under Category II for customers and Category III for vendors. The SBP has also launched a Shariah-compliant version of the scheme. #solar #wind - Profit by Pakistan Today https://profit.pakistantoday.com.pk/2020/07/22/sbp-goes-green-expands-renewable-energy-refinance-scheme/#.XxiSW35mvY4.twitter

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.

Faraz Khan said...

Hello
I am Faraz Khan
Thanks alot for such detailed explanations on energy issues, Haq sahab

I have few questions for you, if younanswer please

1) What are the financing options if I want to go solar, by installing a system of about 5 KV?
2) What will be the projected rate (price) of electricity I will get from solar, if I will install a system in Karachi, where KE rates are about 18-20 per unit ?
3) How much difference of rate per unit will be there for on-grid & off- grid systems ?

Thanks

Riaz Haq said...

#CleanEnergy: Under Nia #Pakistan Solarization Project, 7,227 schools provided with #solar power & #energy efficient fans & #LED light bulbs. 2,400 Basic Health Units to get Hybrid Solar PV system, benefiting an estimated 168,000 patients every day - https://www.newsweekpakistan.com/towards-clean-and-green-energy/

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.

Riaz Haq said...

#Pakistan’s largest #motorcycle maker goes solar with 2.5 MW solar at Sheikupura plant. 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. https://www.thenews.com.pk/print/728485-pakistan-s-largest-bike-maker-goes-solar

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.