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

45 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

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...

#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...

#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.

Riaz Haq said...

Pakistan Decides Against New Coal-fired Power

By 2030, Khan said, 60% of all energy produced in Pakistan will be clean and obtained through renewable resources, while 30% of all vehicles will run on electricity.

https://www.voanews.com/south-central-asia/pakistan-decides-against-new-coal-fired-power


Khan’s government, which took power more than two years ago, has also undertaken a countrywide reforestation campaign to plant more than 3 billion trees by mid-2023 to mitigate the effects of climate change. The massive program, dubbed the Ten Billion Tree Tsunami, went into effect last year, and officials say it has planted more than 500 million saplings across Pakistan.

Riaz Haq said...

#Pakistan's $30 million #solar project to power 200,000 rural homes in #Sindh. The World Bank is financing SSEP Project with $100 million additional loan for utility-scale solar power, distributed solar on public buildings, and solar systems to households. https://gn24.ae/b2b23f0c6a48000

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%


Riaz Haq said...

#Norway's Scatec & #Pakistan's Nizam #Energy get financing for $100 million, 150 MW #solar plant in #Sukkur, for 150,000 homes. 75% funding to come from Dutch development bank FMO, Faysal Bank, Bank of Punjab, & PAK Kuwait Investment. https://www.power-technology.com/news/scatec-nizam-energy-close-financing-solar-project-sukkur-pakistan/ via @Power_OnlineMag

Renewable developer Scatec and local partner Nizam Energy have secured a $100m financial closure for a solar project in Pakistan.

The closure comes after the Dutch development bank FMO, Faysal Bank, Bank of Punjab, and PAK Kuwait Investment signed credit agreements for the non-recourse debt financing agreement.

The credit facilities will cover up to 75% of the total cost of the 150MW Sukkur project. Scatec and Nizam Energy intend to start construction within the first half of this year.

Scatec CEO Raymond Carlsen said: “We are proud to complete the financing of our first project in Pakistan together with our partners.

“The government plans to increase the share of renewable energy to 30% by 2030 and we look forward to supporting this growth by delivering 305GWh of clean power annually.

“This is enough to cover the electricity needs of about 150,000 households and will contribute to avoiding more than 106,000t of GHG emissions per annum.”

FMO agreed to provide half of the debt quantum under a credit facility of $39m. Three local commercial lenders will provide the remaining half under credit facilities of an aggregated $42m (PKR6.7bn).

Located in the Sindh province, south-east of Pakistan, the Sukkur project portfolio was awarded a ‘costs plus tariff’ agreement by the National Energy Power Regulatory Authority early last year.

Riaz Haq said...

Pakistan leapfrogging to a green energy future
18 September 2020
Author: Maha Qasim, Islamabad

https://www.eastasiaforum.org/2020/09/18/pakistan-leapfrogging-to-a-green-energy-future/#:~:text=In%20August%202020%2C%20the%20Pakistan,30%20per%20cent%20by%202030.

In August 2020, the Pakistan government formally approved the Alternative and Renewable Energy Policy 2019. The new policy aims to boost the share of electricity generated from renewable sources from around 5 per cent at present to 20 per cent by 2025 and 30 per cent by 2030.


To encourage the shift to renewables and empower the domestic industrial sector, the policy offers generous tax benefits to investors, encourages lower tariffs by introducing competitive bidding, and incentivises local production of renewable energy equipment such as wind turbines and solar panels.

The recent introduction of net-metering legislation for solar installations allows consumers to sell power to the grid. This is expediting the adoption of rooftop solar by homeowners and presents an opportunity to electrify remote villages and commercial enterprises that have sufficient rooftop space and available land.

Around 1000 MW of wind power has also been developed over the last few years. Wind power receives the highest level of private sector interest due to bite-size investment requirements and a relatively short gestation period. Utility-scale wind and solar plants could soon be augmented by battery storage to overcome the challenge of intermittent power supply.

The National Electric Vehicles Policy launched last year also promotes the large scale adoption of electric vehicles in an effort to combat urban air pollution and provides incentives to jumpstart the local electric vehicle manufacturing industry. The shift to electric vehicles could play a significant role in reducing Pakistan’s oil import bill and securing the transport sector against international price shocks, while also creating numerous green business and employment opportunities.

Pakistan currently imports almost a third of its energy resources in the form of oil, LNG and coal. An import-driven energy policy is not sustainable for Pakistan as it contributes to long-term energy insecurity, exposing the economy to energy price shocks and the risk of inflation. Inflationary pressures reduce the competitiveness of the country’s exports, further constraining Pakistan’s capacity to pay for energy imports.

The rapid adoption and upscaling of green energy solutions in the form of distributed generation, smart metering and electric vehicles — coupled with investments in utility-scale renewable energy power plants and increased energy conservation efforts — will significantly reduce energy imports and decrease the cost of electricity. This amounts to greater self-sufficiency and energy security for Pakistan.

Thanks to infrastructure and energy projects built under the China–Pakistan Economic Corridor (CPEC), Pakistan has managed to plug the energy shortfall that has plagued the country for several years. The government has various power projects in the pipeline and forecasts surplus generation capacity in the next decade — a surplus that could benefit the growing electric vehicles sector.

Riaz Haq said...

#Karachi-based Denim-Maker Artistic Milliners Makes $370M Investment in #Hydropower Projects in #Pakistan demonstrating commitment to sustainability. It will also include the development of wind and solar projects, as well as an operational #wind farm. https://sourcingjournal.com/denim/denim-mills/artistic-milliners-hydropower-projects-pakistan-energy-generation-ushu-river-264756/

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.

Riaz Haq said...

Why Covering Canals With Solar Panels Is a Power Move
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.

---------------------

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.

Riaz Haq said...

Renewable energy is the cornerstone of our future energy needs. In particular, solar energy is beingutilized at a faster pace than ever. Floating Solar Photovoltaics (FSPV) has recently gained traction as asuitable alternative of land-based large scale PV installation. It is a promising technology to utilize watersurfaces for placing solar plants. Not only it utilizes the water as real estate but it has several otheradvantages as well. For example, FSPV can use the existing transmission and distribution infrastructurethat is the part of hydroelectric power plants. In this paper, we evaluate an FSPV plant and its integrationwith the existing hydroelectric power station of a small reservoir in Pakistan. We have investigated the500 kV, 132 kV and 11 kV voltage levels for the integration of FSPV plant. Moreover, we have devised ahydro-solar optimization model for the ef´Čücient utilization of energy. The combined system consisting ofhydroelectric and 200 MWp FSPV produces more than 3.5% additional power overall when comparedwith production of only hydroelectric power. More importantly the FSPV generation coincides with thedaily mid-day peak load thus works as a peaker plant for the national grid

https://www.researchgate.net/publication/331808150_Integrating_Floating_Solar_PV_with_Hydroelectric_Power_Plant_Analysis_of_Ghazi_Barotha_Reservoir_in_Pakistan

--------------

Integrating Floating Solar PV with Hydroelectric Power Plant:
Analysis of Ghazi Barotha Reservoir in Pakistan

Temperature function for a long-term district heat demand forecast

Introducing a Floating Solar PV plant in a huge hydroelectric dam reservoir can be a revolutionary step in the field
of renewable energy systems. Floating Solar PV, having a reasonable power generation potential, if implemented on
Ghazi Barotha dam reservoir, can play a vital role in sufficing the peak load demand encountered by Ghazi Barotha
hydroelectric power plant.
The Dam has two heads with a storage capacity sufficient for daily requirement of 4 hours peak demand. On
average three out of five generating units operate for normal load conditions, and according to WAPDA records[14],
on average individual unit produces around 150 MW. The storage capacity of hydroelectric reservoir is utilized when
demand is at peak and according to daily load curves we have two peaks in 24 hours a day. First peak is around 10:00
- 15:00 and the second is 19:00 - 22:00, in some cases we cannot provide our peak demand because the storage has
already been used in the previous peak hours, a solution of the problem of not having stored capacity for peak demand
is to add one more generating unit connected to a floating photovoltaic power source of 200 MW (which is the
estimated output of Ghazi Barotha Dam reservoir I & II, covering 20% of the total area) installed on the Dam reservoir,
during day we could meet our peak demand with FSPV and night peak with hydro power. Moreover, no new
infrastructure is required in terms of transmission line. The same transmission line can be used for the peak demand.
Adding a 200 MW at this site will solve our problem of peak demand in morning and such solar plant could save the
additional costs associated with installing solar power plant any place else i.e. transmission and distribution costs. It
is assumed that the base load demand is always catered by the power from the hydroelectric plant. Floating Solar PV
plant becomes a peak demand source during daytime

Riaz Haq said...

Pakistan’s installed PV capacity will likely increase from around 1.3 GW at the end of 2019 to 12.8 GW by 2030 and 26.9 GW by 2047, according to the Indicative Generation Capacity Expansion Plan – IGCEP 2047, which was recently published by the National Electric Power Regulatory Authority (NEPRA).


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.

Riaz Haq said...

State Bank of #Pakistan has provided Rs36 billion in financing for 521 #renewableenergy projects producing approximately 850MW. It offers financing options ranging from Rs400 million to Rs6 billion for a range of entities and persons #solar #wind #hydro https://www.dawn.com/news/1622092


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.

Riaz Haq said...

“Sales of solar power systems have gone up 80 per cent in the last two years owing to a soaring demand in rural areas where power availability is still a remote possibility,” said M. Saleem Memon, the vice-president of Karachi Electronics Dealers Association (KEDA).

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.

Riaz Haq said...

#Solar #energy shines with opportunity for #China, #Pakistan. Key initiatives: solar village electrification for 40,000 villages & 1.1 million solar powered pumps in rural Pakistan. #agriculture #electricity #renewableenergy #Renewables https://www.chinadaily.com.cn/a/202110/01/WS61567d22a310cdd39bc6cc35.html


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.

Riaz Haq said...

Chinese envoy sees big prospects of Sino-Pak partnership in renewables

https://pakobserver.net/chinese-envoy-sees-big-prospects-of-sino-pak-partnership-in-renewables/


Chinese Consul General in Karachi Li Bijian, while speaking as the chief guest at a Memorandum of Understanding signing ceremony here, he said for achieving sustained development goals (SDGs) China had made huge progress in green energy as this was future of the world.

China had largest renewable energy resources and cutting-edge equipment and machinery. Pakistan was also making every possible effort for conversion to green energy. It had big potential of renewable energy with Sindh’s better position in solar.

The memorandum of understanding was signed between Chinese Solar Energy Zonergy Company Limited-Pakistan and Altamash General Hospital, Karachi to install 351 KV solar energy plants to feed Altamash’s three health facilities in the city; with expected completion period of three months.

AGH’s Director Dr. Emad Altamash and CEO of Zonergy Company Limited (Pakistan) Xu Hong Chang signed the agreement, which was witnessed by Chairman of Altamash Group, Prof. Dr. Muhammad Altamash, Chairperson of AGH, Dr. Shahina Altamash and Chinese Consul General in Karachi, Li Bijian.

Chinese Consul General said, “I am very impressed by the quality and quantum of medical equipment at Altamash General Hospital.”

He acknowledged Altamash’s health services to the humanity, especially to low income group people. Today, he said, Altamash Group had taken a step forward for conversion to renewable energy.

Being the fastest and tested friends, and big partners in various social and economic sectors, under CPEC China and Pakistan were also increasing their cooperation and partnership in energy sector especially in renewables, which was the only future solution.

For last couple of decades, the two countries had been working together in energy sector i.e. solar, wind and coal power generation.

“My government is committed for renewables,” he reaffirmed.

He described Zonergy as one of leading solar energy companies of China and appreciated the company’s contribution in promoting green energy. During a media chat there, Chinese diplomat congratulated Pakistanis on celebrating their “Pakistan Resolution Day “ and successfully holding great event of two-day OIC Foreign Ministers’ Conference in Islamabad.—APP

Riaz Haq said...

In order to encourage the production of renewable energy in the country, the Pakistani government announced on Friday sales tax exemptions on imports of solar panels and their distribution.

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.

Riaz Haq said...

IMF program in Pakistan undermines renewable energy roll-out - Bretton Woods Project

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.

Riaz Haq said...

Road projects: Sindh prepares projects under PSDP

https://tribune.com.pk/story/2341897/sindh-prepares-projects-under-psdp

Road sector schemes of over Rs85 billion were discussed and cleared in the meeting for the next federal PSDP. They included construction of the 189km Coastal Highway from Keti Bunder to Ali Bunder and building of the road to connect Shaheed Benazirabad, Sanghar to Matiari district.

Other projects included dualisation of the 31km track from Tando Allahyar to Tando Adam Road, construction of a 150km road from Rahri (Sukkur) to Guddu Barrage via Khanpur Mahar, Jarwar, Mirpur Mathelo and Mohammadpur. Also part of the proposed projects was the construction of a 135km additional carriageway of Mehran Highway (Nawabshah-raniput) and a 40km road from Thatta to Jhimpir.

There was also the construction of a 203km road from Sanghar to Salehpat via Mudh Jamraho up to Rahri Road and the 45km additional carriageway of road from Naudero to Lakhi.

Riaz Haq said...

Green investment on rise, Pakistan to get 30 % renewable energy - Pakistan Observer

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.

Riaz Haq said...

The Sindh government has decided to solarise 200,000 housing units in rural and urban areas across the province with the support of the World Bank, it emerged on Thursday.

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.

Riaz Haq said...

LONGi receives CSR award from Pakistan’s National Forum for Environment and Health

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.”

Riaz Haq said...

Pakistan issues tender for 600 MW of PV
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.”

Riaz Haq said...

Unilever Pakistan announces its partnership with K-Solar


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.”


Riaz Haq said...

Solar grids bring relief to Sindh
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.

Riaz Haq said...

Pakistan among 26 countries which added over 1,000 MW of solar electricity in 2022

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

Riaz Haq said...

Community solar subscriptions can reduce electricity costs for consumers - Profit by Pakistan Today


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.

Riaz Haq said...

Solar power installations in Pakistan have seen remarkable growth, with an installed capacity of over 2,368 MW as of FY22, reflecting the rising popularity and potential of solar energy.

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.

Riaz Haq said...

Renewables developer Oracle Power PLC has signed a cooperation agreement with Chinese state-owned energy company PowerChina to jointly develop a 1GW solar PV project in Pakistan.

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.”

Riaz Haq said...

10,000mw solar power plants to be installed before summers 2023
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.


Riaz Haq said...

WAPDA & Al Maktoum's private office join hands for solar power development in Pakistan


https://www.globalvillagespace.com/wapda-al-maktoums-private-office-join-hands-for-solar-power-development-in-pakistan/


Water and Power Development Authority (WAPDA) and the Private Office of Sheikh Ahmed Dalmook Al Maktoum have signed two strategic memorandum of understanding (MoUs) for the development of a floating solar power project of up to 1000MW on existing water reservoirs and the rehabilitation, upgradation, and capacity enhancement of four hydro power projects in Pakistan.

Chairman Lt. Gen. Sajjad Ghani (Retd) of WAPDA and Sheikh Ahmed Dalmook Al Maktoum expressed their mutual interest and enthusiasm to collaborate on future, long-term projects in Pakistan’s energy sector, with a specific focus on developing renewable energy solutions.

The MoUs aim to create a cooperative framework between the Private Office and WAPDA, facilitating collaboration and exploration of investment opportunities in Pakistan’s energy sector, particularly focusing on WAPDA’s small hydro power projects.

Read more: CPEC’s first hydropower plant in Pakistan begins full operations

Both parties have agreed to collaborate on upgrading and rehabilitating hydro power projects in Renala, Rasul, Chichokimalian, and Nandipur.

The parties have mutually agreed to collaborate in assessing the technical and economic feasibility of these projects, as well as formulating an implementation plan.

Riaz Haq said...

LONGi and Nimir Energy Forge Strategic Partnership to Advance Solar Energy Solutions in Pakistan

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.

Riaz Haq said...

LONGi and Nimir Energy Forge Strategic Partnership to Advance Solar Energy Solutions in Pakistan

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.

Riaz Haq said...

Kuwait’s EnerTech Holding Explores Renewable Energy Cooperation With Pakistan’s K-Electric

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.

Riaz Haq said...

Haier revolutionizes cooling solutions with launch of Pakistan's first Solar Hybrid Air Conditioner


https://en.dailypakistan.com.pk/28-Aug-2023/haier-revolutionizes-cooling-solutions-with-launch-of-pakistan-s-first-solar-hybrid-air-conditioner

Haier is proud to unveil an unprecedented leap in the realm of cooling solutions with the introduction of Pakistan's very first solar hybrid air conditioner. This groundbreaking innovation marks a monumental shift towards sustainable and energy-efficient living, setting new standards in the industry. The launch of the solar hybrid air conditioner underscores Haier's dedication to shaping a brighter future for generations to come.

The Haier solar hybrid air conditioner is a groundbreaking marvel that operates entirely on solar power during daylight hours, eliminating the need for any intermediary devices such as inverters, batteries, UPS, or converters. By seamlessly integrating four 540W solar panels and establishing a direct connection to the outdoor unit, the AC functions autonomously, setting an industry precedent. This marks a historic milestone in Pakistan, where an air conditioner operates directly on solar power without any supplementary support.

For the very first time, consumers can embrace cooling technology that not only cools their spaces but also ensures zero electricity bills during daylight hours. Never before in Pakistan has an air conditioner operated directly on solar power without any intermediate support. This innovative approach significantly minimizes the concerns related to electricity costs and additional equipment expenses. As daylight graces the solar panels, the AC operates exclusively on solar energy, providing cooling comfort without the burden of utility bills. The system seamlessly switches to the grid only in case of cloudy weather, mimicking the hybrid concept found in modern-day hybrid cars. Additionally, the same holds true for nighttime operations.