Thursday, June 16, 2016

Pakistan Regulator Publishes New Feed-in Tariff (FiT) Rates

Pakistan’s National Electric Power Regulatory Authority (NEPRA) has published for public comments its revised feed-in tariffs (FiTs) for solar energy projects of up to 100 MW, according to a report in PV-Tech journal.
Source: PV-Tech
The proposed FiTs are slightly lower in Balochistan, Sindh and Southern Punjab region than in Khyber Pakhtun Khwa (KPK) and the rest of Punjab. The proposal for years 1 through 13 includes Rs. 11.128 (US$0.105) per unit for southern region and Rs. 11.783 (US$0.111) per unit for northern region. The rates drop to Rs. 5.588 (US$0.053) and Rs. 5.917 (US$0.056) per unit for northern and southern regions respectively for years 14-25.  The average for the next 25 years works out to Rs. 9.924 (US$0.094) and Rs. 10.507 (US$0.099) per unit for the two regions.

Pakistan Solar Map  Multi-year mean (2000-2012) of daily Global Horizontal Irradiance (GHI) for Pakistan in kWh/m2 [Note: preliminary, unvalidated results] Source: World Bank


Last year, NEPRA, the nation's power regulator,  approved a regulatory framework for solar and wind energy for both commercial and residential installations. The framework includes feed-in tariffs for commercial power producers and net metering for residential applications of up to 1 MW.



Under the new Net Metering Law, NEPRA, the Pakistani power regulator, will grant power generation licenses to solar and wind system owners. The owners will need to register the critical equipment used, particularly the make and model of inverter and generator used. Among other technical considerations, the generator must also install a manual disconnect device to take the system off the network if necessary, according to details published by PV Tech publication.

Net metering is a billing mechanism that pays solar energy system owners for the electricity they add to the grid. It allows a residential customers with rooftop solar panels to generate more electricity than the home uses during daylight hours and sell it to the power supply company. It will require a bi-directional meter (or two separate meters) for implementation.

Pakistan has already introduced feed-in tariffs (FiTs) for larger renewable power systems to supply electricity to the national grid on a commercial scale.  It paved the way for a 1000 MW Quaid-e-Azam solar park being built in Bahawalpur.

Cost of solar power is rapidly declining.  However, Pakistan's NEPRA's attempt to cut tariff down from 14.15 cents to 9.25 cents per unit is being resisted strongly by Zonergy Company Limited, a Chinese company working on Quaid-e-Azam solar park power project, according to a story in Express Tribune newspaper.  This is in sharp contrast to the record low solar tariff of Indian Rs 4.63 per unit (Pak Rs. 7.19)  for 500 MW solar project by US-based Sun-Edison, according to Indian media reports.

Pakistan's renewable power policy and regulatory frameworks have drawn praise from international law firm Eversheds which has described the country as “one of the most exciting renewables markets globally, with an abundance of potential”. Alternative Energy Development Board (AEDB) of Pakistan's CEO, Amjad Ali Awan has said that "Pakistan’s renewable market is relatively new but it provides an attractive investment opportunity with compelling structures which make it bankable as well as marketable."

Net metering law is necessary but not sufficient to promote widespread use of renewable energy. It will take serious coordinated efforts of Pakistan power regulator NEPRA, the country's nascent solar industry and various utilities like K-Electric to start implementation. Meanwhile, consumers could install a stand-alone rooftop solar system that can be connected to the grid in future. They just need to make sure to select high-quality equipment, particularly inverter and switch, for this purpose which will most likely be acceptable to utilities.

Related Links:

Haq's Musings

Pakistan Deploys IT Apps to Improve Service in Public Sector

Solar Power For Pakistan Homes, Schools, Factories

Shakti Solar Model For Pakistan

Pakistan's New FIT Policy For Alternative Energy

Media & Telecom Revolution in Pakistan

Pakistan Building 1000 MW Wind Farms

Pakistan Launches Wind Farm Projects

Renewable Energy to Solve Pakistan's Electricity Crisis

Electrification Rates By Country

Wind Turbine Manufacturing in Pakistan

Pakistan Pursues Hydroelectric Power Projects

Solar Energy for Sunny Pakistan

Wind Power Tariffs in Pakistan

Pakistan's Twin Energy Shortages

21 comments:

Yu Yong, ZTE said...

Tariff below 10 cents is not possible and it will not work. How are you to get return on your investment. Zonergy made commitment to Pakistan at 12.50 cents.

Riaz Haq said...

YY: "Tariff below 10 cents is not possible and it will not work."


Apparently Sun Edison has figured out now to make money with solar power at record low solar tariff of Indian Rs 4.63 per unit (Pak Rs. 7.19) in India.


http://articles.economictimes.indiatimes.com/2015-11-05/news/68044032_1_sunedison-tariff-solar-parks

Vishal said...

There have been 3 tricks that have allowed India to get cheap solar power: (1) Reverse auctioning of projects to Indian and foreign companies with 100% FDI allowed (2) Supply of barren government lands through land banks (3) Strict timelines (Letter of intent within 2 weeks, project contracts in 4 weeks of bidding).

Also, as an FYI -- the solar power tariff in India has fallen even further now, with Finland-based energy firm Fortum Finnsurya Energy getting the contract at Rs 4.34 for a 70-mw solar plant under NTPC's Bhadla Solar Park. The previous low was Rs 4.63 by the US-based SunEdison that you quote. Some of the other winners included Rising Sun Energy Pvt Ltd (two blocks for Rs 4.35 a unit), Solairedirect (two blocks for Rs 4.35 a unit) and Yarrow Infrastructure (one block for Rs 4.36).

From what I know the average solar energy tenders in India are going somewhere between Rs 4.2 to Rs 5.4, depending on the land and location. There are many Indian companies too that are accepting tenders in that range. Rattan India Solar, Yarrow Infrastructure Ltd etc. have all been quoting Rs 4.36/kWh. Even TATAs are now quoting around 4.4 to 5.2/Kwh for solar projects.

Majumdar said...

Prof sb,

This is a step in the right direction. By bringing down tariffs they will encourage genuine investors only and disocurage looters- also prevent discoms and consumers from being ripped off.

Regards

Riaz Haq said...

1.1 GW Of New #Solar Power Capacity Being Developed In #Pakistan with $3 billion in new #FDI http://cleantechnica.com/2016/06/01/1-1-gw-solar-capacity-developed-pakistan/ … via @CleanTechnica

Pakistan is expected to see a sharp jump in operational solar PV capacity over the next few years, as several project developers have signed pacts to set up projects.

The Alternative Energy Development Board (AEDB) has reported that as many as 35 solar PV power projects are currently at various stages of development. These projects will have a cumulative installed capacity of 1,111 MW.

The largest of these projects will come up at the Quaid-e-Azam solar power park. The project currently has 100 MW of operational capacity. Apollo Solar Pakistan, Crest Energy Pakistan, and Best Green Energy Pakistan are working on 100 MW of solar capacity each. These projects are expected to be commissioned by the end of this year. The total capacity of the Quaid-e-Azam solar park will thus increase to 400 MW against a planned capacity of 1,000 MW.

Six other developers have been issued letters of support for the development of projects with a cumulative capacity of 47.84 MW. The ADEB has also issued letters of intent for the development of 25 projects with a combined generation capacity of 663 MW. These projects are expected to be operational by 2018.

Additionally, the government of Punjab province has also issued letters of intent for projects with 600 MW of capacity, of which 300 MW of capacity has already secured financing.

Several European and Chinese companies have already invested in Pakistan’s renewable energy market. Foreign investors poured over $3 billion into the renewable energy sector in Pakistan over the last year.

Shams S. said...

This is Punjabi Nawaz Sharif government at its extreme. Punjabi federal government has given higher tariff for Punjab North than Sindh, so more plants ventures will go there.

Riaz Haq said...

Shams: "This is Punjabi Nawaz Sharif government at its extreme. Punjabi federal government has given higher tariff for Punjab North than Sindh, so more plants ventures will go there. "


First, the tariffs are based on level of irradiance measured in terms KWh/sq meter in north vs south. Southern region is Pakistan gets 6 or higher KWh/sq meter of gross irradiance while the northern region gets less than 5.

Please check this source: http://www.worldbank.org/en/news/feature/2014/11/12/global-wbg-renewable-energy-mapping-program-gets-underway-in-pakistan-with-first-solar-measurement-station

Second, the rates Pakistan is offering are much higher than India's. Sun Edison has accepted solar power solar tariff of Indian Rs 4.63 per unit (Pak Rs. 7.19) in India.

http://articles.economictimes.indiatimes.com/2015-11-05/news/68044032_1_sunedison-tariff-solar-parks

Shahid said...

Punjab has lowest tariff rate then Sindh

Kalya said...

Why does Pakistan have the highest rate in South Asia

Riaz Haq said...

The arrival of clean energy in Pakistan

https://www.dawn.com/news/1342916/the-arrival-of-clean-energy-in-pakistan

Clean energy is ramping up in Pakistan. Solar PV and LED lighting solutions are fast becoming pervasive in both rural and urban areas with thousands of small businesses signing up for clean energy.

For consumers, it is only logical to move beyond intermittent grid electricity which has proven to be both expensive and unreliable.

As per the latest International Energy Agency Report for 2016, clean energy accounted for 70pc of total electricity generation investment, sidelining investments in fossil-fuel based generation by a wide margin.

Clean energy investments are led by wind power (37pc), solar PV (34pc) and hydropower (20pc).

Amongst countries, China leads the global investment in clean energy generation and continues to invest roughly more than double its investment in clean energy as compared to fossil fuel generation, followed by the European Union, the United States and Japan.

Pakistan has taken a different approach towards energy security. The CPEC has shifted the bulk of the new additions to coal and nuclear. Despite this, solar, wind and micro hydro have all taken off.

What is really encouraging is the use of solar PV by small and medium businesses amid unreliable and expensive grid electricity.

The electricity regular, Nepra, must be given full credit for setting the right sectoral tone by introducing Wheeling, Net Metering and Distributive Generation regulations, all in a short span of time.

Consumers have realised that it is grid energy which is intermittent and expensive and not clean energy.

At the grid level, consumers are unnecessarily penalised with surcharges and taxes which include tariff rationalisation surcharge, debt servicing surcharge, Neelum Jhelum surcharge, FED, sales tax and other fees.

Through all this, the cost of grid electricity is being pushed much higher despite low crude oil prices.

Circular debt, as per media reports, is once again hovering in the range of Rs450 billion and the only plausible way to pay it off is via levy of another surcharge. It has become a norm in the sector that those who pay are only asked to pay more for those who don’t pay at all.

Pakistan needs to understand the business case for clean energy — primarily the impact on jobs and increase in business productivity.

As a country, we too will be adding roughly 1,000MW of clean energy (wind, solar and bagasse) in the next two years but will be adding substantially more from coal and nuclear power.

The government needs to realise that the tide has shifted. The old notions that clean energy is expensive and intermittent no longer holds true.

With changing times, incentives must be provided to help scale clean energy, provide it with the right eco-system, along with regulations to help consumers shift to improved technologies.

Now is the time for Pakistan to truly embrace its clean energy potential, make an early transition and reap the benefits of higher business productivity and increased job creation.

Riaz Haq said...

Pakistan updates net metering scheme, unveils clean energy investment program

https://www.pv-magazine.com/2018/01/05/pakistan-updates-net-metering-scheme-unveils-clean-energy-investment-program/

Pakistan has updated its 2015 net metering scheme to make it more user friendly. The Government of Punjab, meanwhile, has unveiled a new Access to Clean Energy Investment Program, aimed at installing over 20,000 solar PV rooftop systems.

Pakistan has updated its net metering guidelines. Prime Minister Shahid Khaqan Abbasi officially launched the changes at a ceremony in Islamabad on January 3.

Overall, the framework is said to have been simplified, while net metering connections can now be gained in less than one month.

According to a statement on the Ministry of Information, Broadcasting & National Heritage Government of Pakistan website, Khaqan said issues of service and equipment quality had also been addressed.

He added that the key challenge now is to make the system “more efficient and reduce the cost of generation,” of which net metering is part of the plan.

Pakistan first introduced a net metering scheme on September 1, 2015. According to Net Metering Pakistan, as of last March 20, the Islamabad Electric Supply Company (IESCO) had connected 56 net metering systems and imported nearly 6 MWh of electricity.

Reducing the burden

The Government of Punjab is also looking to up the solar ante, having introduced The Access to Clean Energy Investment Program, aimed at reducing burden on the National Grid and improving environmental conditions through the implementation of off-grid, decentralized energy solutions.

It is looking to install solar PV rooftop systems on all basic health units (2,400), schools (20,000) and public buildings in the province.

In a document calling for expressions of interest (EOI), the government adds, “The program also includes conducting the energy efficiency audits on the public sector building, construction of a model net zero building and establishment of IT based Program Performance Monitoring System.”

Among the conditions required for project developers, are the criteria that they have completed at least two similar projects within the last 10 years, and have an annual turnover of Rs. 30.00 Million (around US$270,800) or higher.

To fund the program, the government has asked the Asian Development Bank for support to the tune of $87.69 million, which was already approved in November 2016.

“The ADB will support broader GoPb provincial government program for providing uninterrupted access to affordable and clean energy, as set out in the respective power sector master plan,” said the government.

Overall, two phases have been envisaged for implementing the plan: (i) solar PV rooftop systems on 10,861 schools in South Punjab; and (ii) systems on another around 9,700 schools in Northern and Central Punjab.

“The installed solar plants will provide electricity to more than 2.4 million students, including 30% girl’s schools,” said the government.

In addition, a 2.5 MW PV system will be installed at the Islamia University Bahawalpur in 
Punjab by Punjab Energy Efficiency and Conservation Agency (PEECA). And 2,400 basic healthcare units will receive solar PV rooftop installations.

According to Bloomberg New Energy Finance (BNEF), Pakistan will see PV installations increase 46% in 2017, up from 700 MW in 2016, to 1.020 GW.

Riaz Haq said...

Tea, haircuts and fish bones in off-grid #villages: Letting the #solar light into #Pakistan. #renewables

https://www.reuters.com/article/us-pakistan-solar-electricity-feature/tea-haircuts-and-fish-bones-letting-the-light-into-pakistan-idUSKBN1FW0SM

Nizam Bijli installs pay-as-you-go solar systems in homes and businesses, where customers pay 2,000 Pakistani rupees ($18) a month over 16 months for three bulbs, one fan and two USB slots to charge their mobile phones.

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“Now I can eat fish and not worry about bones getting stuck in my throat,” Mohammad told the Thomson Reuters Foundation, describing how he enjoys a well-lit evening meal since his son, Ghulam Nabi, installed solar bulbs in his home three months ago.

For nearly a decade, chronic power shortages have hobbled Pakistan’s economy, leaving 144 million people without electricity or enduring lengthy blackouts, the World Bank says.

Globally, more than one billion people, or one in seven, lacked access to electricity in 2014 and many more suffer from poor supply, which keeps them trapped in poverty, reliant on wood, candles and kerosene, experts say.

These numbers may be grim but young entrepreneurs like Saad Ahmad see this as huge growth potential in Pakistan, which generates only two-thirds of its energy needs.

“There is massive opportunity for business,” said Ahmad, 26, chief executive of solar energy supplier Nizam Bijli, which has powered 1,300 homes since it started in 2016 and hopes to reach 1 million people by 2020.

“There is room for many companies to make a difference in the lives of these communities.”

“Now I can eat fish and not worry about bones getting stuck in my throat,” Mohammad told the Thomson Reuters Foundation, describing how he enjoys a well-lit evening meal since his son, Ghulam Nabi, installed solar bulbs in his home three months ago.

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“There is massive opportunity for business,” said Ahmad, 26, chief executive of solar energy supplier Nizam Bijli, which has powered 1,300 homes since it started in 2016 and hopes to reach 1 million people by 2020.

“There is room for many companies to make a difference in the lives of these communities.”

A similar ‘off-grid revolution’ is afoot across Africa due to fast-dropping costs and plenty of sun.

Currently only four percent of Pakistani households tap into solar power due to lack of awareness, limited supply chains and a shortage of consumer financing for relatively high up-front costs, according to the World Bank.

Nizam Bijli installs pay-as-you-go solar systems in homes and businesses, where customers pay 2,000 Pakistani rupees ($18) a month over 16 months for three bulbs, one fan and two USB slots to charge their mobile phones.

Ahmad believes this is affordable as families spend a similar amount on kerosene and charging mobile phones in nearby towns. The average income in Pakistan is about $1,450, according to World Bank data.

Ahmad is certain the only way out of Pakistan’s energy crisis is to bypass the grid and leapfrog straight into low-carbon sources like wind and solar.

“The whopping costs associated with grid extension (and) low electricity consumption by rural communities dispersed over large swathes presents a barrier to investment,” he said.

Pakistan already has one major solar park in the eastern province of Punjab, built with Chinese investment. Meanwhile, the parliament in Islamabad switched to solar energy in 2016 and sells excess energy it produces back to the grid.

TEA AND CIGARETTES
Allah Dino’s barber shop in Khorwah, 180 km (110 miles) east of Pakistan’s largest city, Karachi, is connected to the grid.

But intermittent power had forced him to close by sunset. Now he has solar, his business is open until close to midnight.

“There is never an idle moment and my men now work in shifts,” Dino said.

Next door in Bhittai roadside restaurant, solar has also been good for Mohammad Azeem. It allows truckers to stop by throughout the night to drink his tea, brewed on wooden stoves.

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...

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...

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...

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...

Solar, Wind, and Hydro: Pakistan's Transition to Renewable Energy

https://www.energyportal.eu/news/exploring-the-role-of-renewable-energy-for-a-sustainable-future-in-pakistan/222829/

Pakistan is taking significant steps towards a sustainable future by shifting from traditional fossil fuels to renewable energy sources such as solar, wind, and hydroelectric power. This transition not only benefits the environment but also strengthens the country’s economy and energy security. With over 11,000 MW of installed renewable energy capacity, accounting for over 32% of the total energy mix, Pakistan’s renewable energy sector has seen remarkable growth.

Solar energy presents a bright prospect for Pakistan. The country’s geographical location and climate conditions make it an ideal place to harness solar power. With an estimated potential of 2.9 million MW, Pakistan has a fantastic opportunity to diversify its energy mix and reduce its reliance on fossil fuels. Collaborations between energy companies like NIMIR Energy and solar panel manufacturer LONGi are driving the development and deployment of solar energy solutions, ensuring sustainable and clean energy sources for meeting the country’s growing energy demand.



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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/

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.”

Riaz Haq said...

Pakistan Sees Solar Boom as Chinese Imports Surge, BNEF Says – BNN Bloomberg


https://www.bloomberg.com/news/articles/2024-08-09/pakistan-sees-solar-boom-as-chinese-imports-surge-bnef-says/


(Bloomberg) -- Pakistan’s market for solar power is booming, propelled by a surge in imports from China, according to BloombergNEF.The country imported some 13 gigawatts of solar modules in the first six months of the year, making it the third-largest destination for Chinese exporters, according to a report by BNEF analyst Jenny Chase. Pakistan’s installed capacity to generate power is just 50 gigawatts. China is the world’s biggest producer of solar equipment.Solar is gaining traction in the South Asian nation following hikes in power prices over the past few years, with the latest increase in July triggering widespread protests. Higher rates have seen grid electricity consumption drop to the lowest in four years as many people switch to independent solar. “Pakistan’s market has the potential to continue to be very large,” said Chase. “If solar is solving the market’s power problems, there is no reason to expect a crash any time soon.”BNEF expects that the country will add between 10 gigawatts and 15 gigawatts of solar this year, mostly on homes and factories, making Pakistan the sixth-largest market in the world. Given the surge in imports, that figure could end up being far higher — or growth could stall if the grid situation improves, prices fall, or the market of middle-class people who can afford solar panels on their roofs saturates, according to the report.
There are other complications in accurately assessing the market and its prospects, said Chase. Those include wide discrepancies between official data on installations and imports, as well as claims last year that solar imports were used in money laundering schemes.

Riaz Haq said...

Future of Net-Metered Solar Power in Pakistan

https://ieefa.org/resources/future-net-metered-solar-power-pakistan

Pakistan's current Distributed Generation and Net Metering Regulations offer incentives such as high buyback rates, fixed long-term generation licenses, and generous allowances for installed capacity. These have resulted in ideal payback periods, leading to a surge in net-metered rooftop solar photovoltaic (PV) capacity across the country.

The current policy offers 2-4 year payback periods for 5-25 kilowatt (kW) net-metered solar PV systems. Power utilities are concerned that higher penetration of distributed solar could place the distribution infrastructure at risk of failure and increase capacity payments on non-net-metered consumers.

The government is considering reducing buyback rates and a shift to net billing from net metering, which could increase payback periods for consumers with a higher self-consumption ratio but may incentivize oversized systems. A net billing scheme would therefore need to limit system size. Despite all policy shifts, the payback periods remain under 5 years

For the government, while maintaining or improving buyback rates can encourage more renewable energy adoption, this must be combined with grid optimization and digitization. For consumers, choosing the right system size for their consumption profile can significantly impact their return on investment.

Riaz Haq said...

Rationalizing Incentives for Solar Photovoltaic (PV) in Pakistan

https://ieefa.org/sites/default/files/2024-08/IEEFA%20Fact%20Sheet_Rationalizing%20Incentives%20for%20Solar%20PV%20in%20Pakitan.pdf

The recent surge in rooftop solarization in Pakistan has raised concerns among power distribution companies about
system reliability and increased capacity payments.
The government is considering several changes to current energy policies, including reducing buyback rates,
limiting system sizes, and transitioning from net metering to net billing.
However, even with the proposed changes, the payback period for 5-25 kilowatt (kW) distributed solar PV systems
remains below the 5-year threshold


A mere 50 megawatts (MW) of netmetered solar capacity was added
between 2016 and 2019. However,
consistently high electricity tariffs
and a substantial decline in solar
panel prices have led to a recent
surge in solar PV additions.
Pakistan’s abundant
solar potential offers
specific yields of 3.8
kilowatt-hours per
kilowatt peak (kWh/
kWp) to 6kWh/kWp.
Since 2022, net-metered solar PV
installations have nearly doubled, with
764MW installed in 2023.
In June 2024, Pakistan’s
on-grid net-metered solar PV
capacity was approximately
2200MW.

The recent surge in rooftop solarization in Pakistan has raised concerns among power distribution companies about
system reliability and increased capacity payments.
The government is considering several changes to current energy policies, including reducing buyback rates,
limiting system sizes, and transitioning from net metering to net billing.
However, even with the proposed changes, the payback period for 5-25 kilowatt (kW) distributed solar PV systems
remains below the 5-year threshold



Under the current mechanism, which offers the prevailing National Average Power Purchase Price (NAPPP) of PKR 27 per
kilowatt hour (kWh) as the buyback rate, the relatively higher per kW cost of smaller 5kW and 7.5kW systems results in
extended payback periods ranging between 2.4-4 years. As the system size increases, the payback period decreases, with
a 25kW system recording the shortest payback period of 1.74 years.
• Reducing the buyback rate to the National Average Energy Purchase Price (NAEPP) of PKR 9.69/kWh could lead to a
10%–56% increase in the payback period, depending on the level of consumption and system size. Consumers with smaller
installations and lower consumption experience longer payback periods.
• Reducing the buyback rate to PKR 15/kWh would only result in a 6% increase in the payback period for consumers with
100% self-consumption, while for lower-consumption profiles it may increase by 25%.
• Shifting to a net billing mechanism would increase the payback period for consumers with a higher self-consumption ratio
but could incentivize the installation of oversized systems.

Riaz Haq said...

A solar power policy crisis for Pakistan - Asia Times

https://asiatimes.com/2024/05/a-solar-power-policy-crisis-for-pakistan/

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As of August 2024, Pakistan's net metering regulations allow excess energy from solar systems to be sold back to the grid at the National Average Power Purchase Price (NAPPP). This price reflects the average cost per unit of power that the DISCOs purchase.
In June 2024, some speculated that the government might introduce changes to the solar panel policy, including a shift from net metering to a gross metering system. However, the Federal Minister for the power division, Ahmed Khan Lagari, has denied these changes and assured the public that the existing net metering system will remain in place.
A bidirectional meter, which measures both the electricity generated and consumed, can help consumers reduce their reliance on expensive grid electricity. This system can also make solar investments financially viable, promote energy independence, and reduce the strain on the national grid.

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Optimizing solar incentives and grid infrastructure in Pakistan can benefit power distribution companies and energy consumers | IEEFA

https://ieefa.org/articles/optimizing-solar-incentives-and-grid-infrastructure-pakistan-can-benefit-power

The regulations created the framework for the successful adoption of distributed renewable energy in the country, with approximately 2.2 gigawatts (GW) of net-metered rooftop solar PV capacity connected to the grid by June 2024.