Nearly 4,000 new net metering licenses have been issued in Pakistan in the July-September quarter, up from 2,000 in the same quarter last year. Vast majority of these are for solar photo-voltaic installation. Net metering solar installations are in addition to the rapidly growing off-grid solar panels across Pakistan. Higher electric utility (DISCO) bills and lower cost of solar panels appear to be driving the adoption of solar in Pakistan. Net metering allows users with private renewable energy production plants to connect to the electric grid and sell excess power to the local electric utility or DISCOs such as K-Electric, LESCO or IESCO in Pakistan.
Net Metering Installations in Pakistan. Source: Jeremy Higgs |
This year has seen the fastest growth in net energy metering (NEM) growth since Pakistan launched its first NEM policy in 2015, according to data shared by Jeremy Higgs, director of operations for Islamabad-based EcoEnergy. Total number of net metering installations in Pakistan is about 16,000, according to Jeremy Higgs. National Electric Power Regulatory Authority (NEPRA) issued 3,334 net metering licenses with total installed capacity of 56.86 megawatt under the net-metering regime during 2019-20, according to an October, 2020 news report.
Net Metering Installations By DISCOs in Pakistan. Source: Jeremy Higgs |
Surprisingly, Pakistan's biggest city Karachi is lagging significantly behind Lahore and Islamabad in net metering licenses. Nearly 25% of all net metering licenses in Pakistan were issued by LESCO (Lahore Electric Supply Company) in the July-September quarter. IESCO (Islamabad Electric Supply Company) has handed out 20% and K-Electric (Karachi Electric) 15%.
Top 10 Solar Energy Countries in 2017. Source: USAID |
Back in 2017, Pakistan was ranked among the top 10 countries for investment in solar PV projects below 1 MW. Pakistan PSLM/HIES 2018-19 survey results revealed that 15.2% of all households are using solar panels as a source of energy for their homes.
Pakistan Solar Panel Imports in Millions of US Dollars. Source: FBS Via Pakistan Today |
Khyber-Pakhtunkhwa province leads the nation with 40% of all households using solar energy. Rural Pakistan is embracing solar power at a faster rate than Urban Pakistan. Adoption of solar in rural areas of KP is at 43%, Sindh 33.9%, Balochistan 20.4% and Punjab 7.9%. Rapid decline in cost of solar panels appears to be driving the adoption of solar in Pakistan's rural areas where grid power is either unavailable or unreliable.
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30 comments:
Good insight. Now that China will not fund coal, this is helpful to get Chinese funds as well. China has the highest production in the world for solar panels. It is good to import panels and export power to neighboring countries.
Dear Sir
Thanks for this post, Sir don't you think that now Pakistan should be making these solar panels locally ?
Thanks
SBP eases terms for renewable energy financing
https://www.dawn.com/news/1651531
The State Bank of Pakistan (SBP) has allowed all Renewable Energy Investment Entities (RE-IEs) to avail financing on easy conditions to remove growing electricity shortage in the country.
The SBP on Monday said that to promote investment in RE solutions by companies, the central bank has eased the conditions for renewable energy solution providers under its Refinance Scheme for Renewable Energy.
With the aim of helping address the challenges of energy shortages and climate change, the central bank revised its Financing Scheme for Renewable Energy in July 2019. Since the inception of the scheme, 717 projects having potential of adding 1,082MW of energy supply through renewable sources have been financed. As of June 30, 2021, total outstanding financing under the scheme is Rs53 billion.
RE, often referred to as clean energy, comes from natural sources — sunlight, water and wind — or processes that are constantly replenished.
Since 2019, projects promising 1,082MW of energy supply have been financed
“Now, all RE-IEs interested in installing renewable energy projects and solutions are allowed to avail refinance under Category-III of the scheme,” said the SBP.
An RE-IE is a business entity (including vendors and suppliers) whose business is to establish renewable energy projects for onward leasing, renting out or selling on deferred payment basis or selling of electricity generated from these projects to end users.
The SBP also launched a Sharia-complaint version of the scheme in August 2019. The scheme now comprises of three categories. Under Category-I, financing is allowed for setting up of RE power projects with capacity ranging from 1-50 MW for own use or selling of electricity to the national grid or a combination of both.
Under Category-II, financing is allowed to domestic, agriculture, commercial and industrial borrowers for installation of renewable energy based projects of up-to 1 MW to generate electricity for own use or selling to the grid or distribution company under net metering.
Under Category-III, financing is allowed to vendors, suppliers and energy sale companies for installation of wind and solar systems of up to 5 MW.
While there is substantial take up under Category-I and II, solution suppliers under Category-III faced problems, said the SBP.
Accordingly, in light of the feedback received from stakeholders including RE solution suppliers, Alternate Energy Development Board (AEDB) and banks, the requirement of AEDB certification has been relaxed for RE-IEs who do not undertake installations on their own but hire services of installers or vendors for installation of RE projects.
“However, vendors, suppliers, engineering procurement and construction (EPC) contractors of these RE-IEs will still be required to be certified under the AEDB certification regulations,” said the SBP.
The SBP expects that this revision in Category-III will further facilitate production of clean energy in the country.
Bilal I Gilani
@bilalgilani
According to the data compiled by the German Agency for Development Cooperation (Pakistan), about 18,000 distributed generators had net-metering licences as of December 2021.
Of them, more than 15,000 were issued only in 2020 and 2021.
https://twitter.com/bilalgilani/status/1523287878109130752?s=20&t=Aa_-FLYCD7MSNurPHJYayQ
Meezan Bank leads PKR 1 Billion Syndicated Islamic Finance Facility For 7 MW Solar Power Project
April 9th, 2022
https://www.meezanbank.com/meezan-bank-leads-pkr-1-billion-syndicated-islamic-finance-facility-for-7-mw-solar-power-project/
Meezan Bank, Pakistan’s leading Islamic bank and Burj Solar Energy Private Limited (BSEPL) are pleased to announce the financial close of PKR 1 billion syndicated Islamic finance facility for BSEPL’s portfolio of renewable distributed power generation in Pakistan. The first tranche of PKR 580 million will be used to finance the construction of 7 MW solar power plant for Power Cement Limited on Karachi Hyderabad Motorway.
Meezan Bank led the transaction as the Mandated Lead Arranger and Pakistan Kuwait Investment Company (Private) Limited participated as the Co-Arranger. The transaction structure is based on State Bank of Pakistan’s Islamic Financing Facility for Renewable Energy (IFRE) and a commercial facility.
The solar power plant will be rented to Power Cement Limited under a twenty-year equipment rental agreement and the solar energy generated will be used by the company’s cement plant in Nooriabad. It will generate 220 GWh solar units for twenty years and in addition to reducing cost of electricity, will offset 112,000 tons of CO2 GHG emissions. The project is expected to start generation in July, 2022.
Legal counsel for the financiers were Mohsin Tayebaly & Co. while Kabraji & Talibuddin Advocates and Legal Counsels acted as BSEPL’s legal counsel. Orient Energy Systems (Private) Limited is the turnkey EPC contractor for the project.
Mr. Ariful Islam, Deputy CEO, Meezan Bank, while commenting on the occasion said,‘Meezan Bank is comitted to actively support and pursue green energy initiatives. Meezan has played a key role the financing of several renewable energy projects aggregating to 380 MW, as Lead or Co-lead manager and also participated in the debt syndications of two large hydro-electric projects being set-up by the Government of Pakistan – Neelum Jhelum and Dasu. Burj Energy is an excellent initiative that will facilitate distributed affordable solar initiatives corporates, small and medium enterprises as well as the individual consumers.’ He said the Meezan has also implemented a number of green initiatives by installing solar at 59 branches branches and 140Kw solar at its Head Office. Its new regional office building in Islamabad is also being designed to be Platinum Lead certified.
Mr. Saad Zaman, Chairman of BSEPL and Burj Energy International Management Limited UAE, said, ‘I am very pleased that we have successfully reached the financial close of the 7 MW solar farm for Power Cement Limited. This is one more success for our company and a significant moment for development of hybrid renewable energy projects in Pakistan. This successful financial close reflects the ongoing interest and trust of leading financial institutions in the Pakistani renewables’ market and Burj Group.’
Mr. Kashif Habib Chief Executive Officer Power Cement Limited, said: ‘Our future is dependent on green, sustainable and renewable source of energy. By installing this 7 MW solar farm, we are taking the first step towards our hybrid solar & wind energy project. We shall keep playing our part in making our production process more environment-friendly and positively impactful for the eco-system we live in. It is high time that we look towards other viable energy options that are clean and green.
Solar net-metering generation reaches 419MW
https://www.dawn.com/news/1700918
The solar net-metering power generation has reached 419MW (approximately) with a considerable number of consumers switching to solar across the country.
With around 149MW, Lahore Electric Supply Company (Lesco) stands first among 10 power distribution companies (Discos), Dawn has learnt.
The net-metering project had been launched in 2016 countrywide. It allows any domestic, commercial, industrial and other consumers having at least a three-phase meter connection to be part of the power generation system by installing it on his/her premises (house, shop, factory, open spaces, etc). Under the arrangements, such a consumer may sell the additional energy to the respective power distribution company and make stocktaking (calculations) with it at the end of the month. Since the system allows the consumers to generate electricity from one kilowatt to one megawatt, Nepra issues licences to the applicants seeking generation below 25kW in the service area jurisdiction of all distribution companies. Before issuance of the licence, the respective companies are supposed to receive, scrutinise and process such applications.
According to an official document, Lesco, since launch of the project in 2016, received total 10,176 applications as of June, 2022 for issuance of licences for cumulative generation of around 185.975MW. The total 10,176 application included 9,561 for the generation below 25kW and 615 of over 25kW. Of these, 9,183 connections were installed and billing started to 7,288 generating total 148.853MW (148,853kW).
Gujranwala Electric Power Company (Gepco) got total 1,528 applications for net-metering connections having a cumulative generation of 41.708MW (41,708kW) that included 1,288 and 240 seeking below 25kW and over 25kW generation. Of these, 1,446 connections were installed with billing started to 1,402 with initiation of 40.717MW.
In Faisalabad Electric Supply Company (Fesco), the authorities received total 2,614 applications (2,286 below 25kW and 328 over 25kW) for generation of 56.681MW (56,681 kW). Here total 2,195 connections were installed and billing started to 1,856 connections having cumulative generation of 44.604MW (44,604kW).
Islamabad Electric Supply Company (Iesco) received total 6,398 applications (79.653 MW/79653kW) including 6,163 and 235 of below and over 25kW respectively. As many as 6,078 connections were installed and billing started to 5,377 having total generation of 72.570MW (72,570kW).
Multan Electric Power Company (Mepco) got 4,232 applications having cumulative generation of 104.358MW (104,358kW) that included 3,756 and 474 of below and over 25kW respectively. As many as 3,844 connections were installed after which billing started to 3,463 having generation of 77.737MW (77,737kW).
In the areas of Peshawar Electric Supply Company (Pesco), total 1,847 applications (1744 and 103 of below and over 25kW) seeking a cumulative power generation of 27.640 MW (27,640kW) were received out of which 1,847 connections were installed with billing initiated to 1,463 applicants generating 26.304MW (26,304kW).
On the other hand, the response to the net-metering project remained lukewarm in the areas of Hyderabad Electric Supply Company (Hesco), Sukkur Electric Supply Company (Sepco), Quetta Electric Supply Company (Qesco) and the Tribal Area Electric Supply Company (Tesco). The consumers in the areas of the aforementioned companies made a generation of 2.673MW, 3.768MW, 1.021MW and 500kW, respectively.
I HAVE been an enthusiast of renewable energy for over a decade. Early this year, I saved enough money, over Rs750,000, to have a 5.4kV solar system installed in my house. I went for an on-grid system, hoping that for most of the year we would be producing more electricity than we would be consuming and, hence, our bill would come out in the negative.
By S. Arif Kazmi Karachi
https://www.dawn.com/news/1701139/stumbling-blocks-are-hindering-solar-shift
I was aware of the other options, like off-grid and hybrid systems. In both these cases, one would need to buy a different type of inverter plus batteries. The system I chose, on-grid with net-metering, did not require any batteries. Whatever power our solar panels produce would directly be sent through the inverter to the K-Electric (KE) grid and whatever we use would come to us from the grid directly as before installation of the solar panels.
The only difference now is that instead of the old meter, we now have a bidirectional smart meter which keeps track of units sent from our panels to the grid and units taken by our appliances; hence the name net-metering.
There was one little detail to which I did not pay enough attention. When there is loadshedding done by KE, or the system shuts down for any reason, we would need some type of backup, like a UPS unit or a generator. At the time when I was signing up for the on-grid net-metering deal, there were hardly any period of loadshedding or power breakdown, and going for a hybrid system would add considerable additional cost of batteries which would need periodic replacements as well.
Now when the KE has started resorting to frequent and extensive loadshedding, there is another concern to pay attention to. During loadshedding, there is no power being exported to the grid. Our panels are producing electricity, but it is neither being stored nor exported.
If we had chosen a hybrid system, the power produced by our panels would be stored by the battery pack, and used for household consumption any time of the day or night. As things stand, if there is a four-hour day-time loadshedding, we are losing about Rs100 per day.
So, if you are thinking of getting solar panels, go with a hybrid system if you can afford the extra cost of batteries. I am not sure about the cost difference between an inverter and a hybrid inverter which would have connectivity to the battery pack as well to the grid plus a smart switch which would guide the current either way.
While I am at it, let me point out that KE is not following the National Electric Power Regulatory Authority (Nepra) rules of payment to customers who are giving more units to KE than what they are getting from it. Also, there is a difference in the rates at which KE buys from us and the rate at which they pay us for the units supplied.
The difference between selling and buying rates is quite huge, and the rate at which KE sells power would keep on increasing, while the rate at which it buys from us is frozen. The gap keeps widening, which, to say the least, is unfair.
Bilal I Gilani
@bilalgilani
During July-Mar FY2022, a total of 10,783 net metering based systems of 196.77 MW
capacity were installed by different segments of consumers. As of 31st December, 2021, net-metering based solar installations had reached up to 17,950 with a
cumulative capacity of 305.79 MW.
https://twitter.com/bilalgilani/status/1607487467828944897?s=20&t=vdNAhE-JuhPHvxZ_JDofoA
Over 3,500 applications for Net-Metering pending in DISCOs
https://pakobserver.net/over-3500-applications-for-net-metering-pending-in-discos/
As many as 3,521 applications for Net-Metering are currently pending in all power distribution companies (DISCOs).
These applications were pending in various distribution companies including Islamabad Electric Supply Company, Lahore Electric Supply Company, Multan Electric Supply Company, Gujranwala Electric Supply Company, Sukkur and Hyderabad Electric Supply companies and Peshawar Electric Supply Company.
According to official of Power Division, all net metering applications are being facilitated as per National Electric Power Regulatory Authority (NEPRA’s) regulations and Alternative Energy Development Board (AEDB) guidelines which are already included in the standard operating procedures (SOPs) of DISCOs.
Power Division has also issued instructions to all DISCOs for timely processing of Net-Metering applications. Net metering connections are installed within the specified time period and no such delays or hurdles are created by DISCO.
A dedicated team of Market Implementation & Regulatory Affairs Department (MIRAD)/ concerned Superintending Engineer are closely monitoring the whole process of net metering connections in all DISCOs for timely execution. He said in order to facilitate consumers, DISCOs have allowed for self-purchase of Bi-Directional energy meters for net metering from approved manufactures. NNI
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.
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.”
Oracle Power, PowerChina team up on 1-GW solar project in Pakistan
https://renewablesnow.com/news/oracle-power-powerchina-team-up-on-1-gw-solar-project-in-pakistan-820530/
UK coal and gold mining projects developer Oracle Power PLC (LON:ORCP) and Power Construction Corporation of China (SHA:601669), also known as PowerChina, have agreed to partner in the potential joint development of a 1-GW solar project in the desert of southeastern Pakistan.
The Thar Solar Project will be based on the unutilised land at Oracle's Thar Block VI coalfield in the Sindh Province, which is located about 250 kilometres (155.3 miles) from the proposed site of the company’s green hydrogen project in the region.
The facility is expected to be equipped with about 1.5 million photovoltaic (PV) panels, providing an installed capacity of 655 watts per panel and generating about 1.7 billion kWh annually, a statement said on Wednesday.
Oracle has already obtained conditional permission from the local Sindh government to build solar plants at its 66.1-square-kilometre Thar Block VI.
The power to be produced from the solar plant could be injected into the national grid or sold to the grid of a private distributor. It could also be utilised to reduce the carbon footprint at other coalfields within the Thar Coal Power Project.
Under the cooperation agreement, the Chinese partner will help Oracle study the feasibility of the project and coordinate work with the government of China. The UK-based firm, in turn, will work on securing the funding of the project and also coordinate ongoing negotiations with the governments of Sindh and Pakistan.
“We look forward to working closely with our partners to swiftly establish ourselves as front runners in the production of renewable power and green energy solutions in Pakistan and in the broader region,” Oracle’s CEO Naheed Memon said in the statement.
The UK-based firm, which is focused on Western Australia and Pakistan, is also working on a 1.2-GW solar, wind and green hydrogen project in Sindh.
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.”
I sincerely appreciate you sharing such thorough details about net metering in Pakistan. We are grateful for your efforts in offering such in-depth information. You have surely given us a deeper grasp of this critical facet of using renewable energy sources by illuminating the complexities of net metering.
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.
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
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.
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.
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.”
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.
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.
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.
Illuminating Pakistan: Leading solar provider commit to dig deep PV market--China Economic Net
http://en.ce.cn/Insight/202405/31/t20240531_39022443.shtml
LAHORE, May. 31 (Gwadar Pro)– “Today, LONGi’s footprint in Pakistan is around 5GW. I believe we are well positioned to seize such an opportunity to further our efforts towards a green future for Pakistan.”
In recent months, clean energy has experienced a new period of rapid growth, with global renewable energy capacity increasing by 50 percent in 2023 compared to the previous year. Pakistan is committed to becoming an important renewable energy development hub in South Asia and the entire Asian region, and is vigorously promoting green transformation at the national level.
As report goes, the Sindh government lately announced to provide solar systems to 200,000 households across the province, including 50,000 homes in Karachi. “A total of 6,656 solar systems will be distributed in each district of the province,” the Director of Sindh Solar Energy has confirmed. Ali Majid, Pakistan General Manager of leading solar solutions provider LONGi, believes that it is undoubtedly good news for Pakistan’s photovoltaic industry, specifically, for Chinese PV companies that have been deeply involved in the local market.
The systems will include solar panels, charge controllers, and batteries. Currently, Sindh generates 400 megawatts of electricity from solar energy. This project is expected to significantly increase solar power generation in the province.
“Nestled in a region blessed with ample sunlight, Pakistan boasts approximately 2.9 million MW of solar power potential,” Ali told in an interview with Gwadar Pro. “And while the initial cost of solar technology has been a deterrent, the decreasing global cost is making it more economically viable for Pakistan.”
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Pakistan - Renewable Energy
https://www.trade.gov/country-commercial-guides/pakistan-renewable-energy
According to National Electric Power Regulatory Authority’s (NEPRA) 2022 yearly report, Pakistan’s total installed power generation capacity is 43,775 MW, of which 59% of energy comes from thermal (fossil fuels), 25% from hydro, 7% from renewable (wind, solar and biomass), and 9% from nuclear.
Wind data, provided by Pakistan's Meteorological Department, measures Pakistan's coastal belt at 60km (Gharo-Keti Bandar) and 180km long, with an exploitable potential of 50,000MW of electricity generation through wind turbines. Currently, 36 private wind projects are operating, producing approximately 1845MW.
Small hydropower projects are mainly located in remote areas of Pakistan particularly the North of the country. Recently, the GoP has identified new generation requirements by capacity, fuel technology, and utilizing indigenous resources for power generation by announcing the Indicative Generation Capacity Expansion Plan (IGCEP). This plan aims to add 13,000 MW of hydropower capacity to the current 9000 MW capacity by 2030.
According to the Private Power & Infrastructure Board (PPIB) of the Ministry of Energy, seven solar projects of 530 MW are operational and supplying electricity to the national grid.
With the rising costs of electricity in Pakistan and an unreliable grid supply, more industries and commercial organizations are turning to captive solar solutions. There has been a strong surge in domestic installation of rooftop photovoltaic panels in larger cities. For projects under 1 MW, net metering regulations came into effect in September 2015. The current state of the energy sector is promising for growth in solar power in the future. given rising fossil fuel prices.
The rise of Pakistan’s C&I solar business – pv magazine International
“In 2022, 2.8 GW of solar panels were imported into Pakistan. In 2023, about 5 GW, despite the import controls, and this year the prediction is for up to 12 GW,” he stated. One of the main hurdles to address in Pakistan's C&I segment is access to financing.
https://www.pv-magazine.com/2024/05/28/the-rise-of-pakistans-ci-solar-business/
C&I power consumers are increasingly deploying solar arrays in Pakistan due to high energy prices and tariffs.
“The average industrial consumers currently pay a tariff of $0.12/kWh,” Omar Malik, the CEO of Pakistani solar developer Shams Power, told pv magazine. “But this is only half the story, as they also have to pay another $0.10 in taxes on every kilowatt-hour they purchase from the grid. The government relies on five to six sectors for the bulk of its indirect tax collection, with electricity being one of the largest ones.”
High-self consumption rates mean lower electricity costs and lower taxes. Under the nation’s current regulations, the sale of excess power to the grid under net metering is only allowed for generators up to 1 MW in size.
The government also only exempts import duties on solar panels. “The exemption on solar inverters has been recently removed,” Malik said. “But this has not had consequences on the market development.”
Pakistan’s National Electric Power Regulatory Authority (NEPRA) issued 1,596 net-metering licenses across the country with a cumulative capacity of 221.05 MW in the 2022-23 fiscal year, according to official statistics from the Associated Press of Pakistan.
Malik said the market is also growing in terms of panel imports.
“In 2022, 2.8 GW of solar panels were imported into Pakistan. In 2023, about 5 GW, despite the import controls, and this year the prediction is for up to 12 GW,” he stated.
Financing concerns
One of the main hurdles to address in Pakistan’s C&I segment is access to financing.
“Banks and lenders in Pakistan keep considering solar assets as very fast depreciating assets,” Malik explained, noting that the volatility of the Pakistani rupee is still an issue compared to India, where access to financing is easier. “The Indian currency is stable enough for international investors.”
Despite these challenges, Shams Power was able to raise $20 million debt from local banks backed by a guarantee from an international credit enhancer, GuarantCo.
“In order to achieve this, we have to bring the bank in at the project finance stage,” Malik explained. “Or we can even do this after a year or two of operation, when we have some defined cash flows and we can show how these assets are performing and get the portfolio refinanced.”
Many Pakistani companies that export denim and textiles to the US and European markets face pressure from their buyers to support their supply chains with clean energy.
“In effect, there is some pressure to move toward renewables, but it is not coming from the government,” said Malik.
Storage segment
The C&I segment does not yet offer a big business case for battery storage.
“Batteries are still not economically viable when it comes to grid parity owing to high duties and taxes on import of batteries and storage technologies,” Irteza Ubaid, chief operating officer for Shams Power, told pv magazine. “With the current electricity price scheme in place, you can only generate profits when there is a power outage. Or when peak rates hit, you can start using batteries. However, the levelized cost of storage of C&I tier-1 batteries today, however, is still close to $0.35/kWh. We are still not able to give an economic benefit to clients to set up storage because they can buy grid power at less than $0.30, they're really not interested – unless they have a continuous production process and cannot afford any interruptions.”
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.
China adopted classic cutthroat pricing to shift a record 120,427 megawatts (MW) of solar module capacity exports in the first half of 2024, with Pakistan being Asia's largest single market, accounting for 10,450 MW.
Key to the strong export flow was a steep cut in module prices, which averaged 13.7 cents per megawatt over the first half of 2024, compared to an average of 18 cents/MW for the whole of 2023.
https://mettisglobal.news/pakistan-emerges-as-largest-asian-buyer-in-chinas-record-solar-exports/
The Netherlands remained the top country market for China's modules, taking in 23,421 MW of capacity during the opening half of the year.
Brazil was China's second largest market during the first half of the year, snapping up 10,511 MW of capacity.
Pakistan was the world's third and Asia's largest single market, accounting for 10,450 MW.
Meanwhile, India snapped up 8,324 MW.
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Key Markets
Europe was the top destination for China's solar modules, accounting for 43% of the total, or 52,158 MW.
That total was down 20% from the same period in 2023, as high interest rates, economic growth concerns and trade tensions with China stifled solar installation demand across the continent.
Nonetheless, Europe's purchase total was the second highest tally for a half-year period behind the first half of 2023.
The Netherlands remained the top country market for China's modules, taking in 23,421 MW of capacity during the opening half of the year.
While that total was 25% less than during the opening half of 2023, The Netherlands' purchases were still more than twice the size of any other nation during the first half of the year.
Spain, Germany and Italy were also notable buyers in Europe, but all also showed steep year-on year contractions in purchase volumes, Ember data shows.
Brazil was China's second largest market during the first half of the year, snapping up 10,511 MW of capacity.
That total was up 10% from the same period in 2023, and contrasts with a slight contraction in imports by the Latin American region as a whole during the first half of the year.
Growth Areas
Asia was the second largest regional destination for China's solar parts, accounting for a record 32,109 MW of capacity, or around 27% of the total.
That total was 86% more than during the first half of 2023, and was driven mainly by strong growth in South Asia. Meanwhile, India snapped up 8,324 MW.
Both markets recorded more than 200% jumps in solar imports from the same period in 2023, and represent key growth markets for China in the future.
The Middle East was another key destination for China so far this year, with exports to the region topping 13,000 MW for the first half of the year to account for a record 11% share of China's total solar panel and parts exports.
That compares to 6,228 MW during the first half of 2023, and was driven in large part by strong purchases by Saudi Arabia (7,649 MW), United Arab Emirates (1,892 MW) and Oman (1,396 MW).
Elsewhere, North America remained a tiny market for Chinese panels and parts due to the ongoing trade spat between China and the United States, while Africa's purchases shrank by around 9% from the first half of 2023, and accounted for only 4.3% of China's total sales
Giving A Fair Deal To Distributed Solar In Pakistan
The author is a freelance contributor interested in sustainable energy and power sector policy, planning, and development. He can be reached at: msrahim@hotmail.com
https://thefridaytimes.com/18-Aug-2024/giving-a-fair-deal-to-distributed-solar-in-pakistan
Distributed solar needs a level-playing field to compete with conventional options. Government should provide an enabling legal, regulatory umbrella and an equitable decision-making framework to objectively evaluate every option
For much of its history, the electric supply industry (ESI) in Pakistan has enjoyed the status of being the most stable business and a favourite of investors. This was mainly due to "economies of scale" in generation, extended distances between load centres and good generation sites (especially, hydro), and the benefits that interconnecting isolated systems offered by way of reserve sharing, energy trading, and reliability. Alas, no more!
The advent of small gas-fired combined cycle power plants has ended the golden era of the large, central-station supply systems. Distributed energy generation technologies, particularly solar photovoltaic (PV), have dealt the proverbial death blow to the unchallenged reign of the traditional way of governing the ESI — using a central-station portfolio of mega-sized generation projects and delivering electricity produced by them to loads located far away.
Distributed solar technologies—located behind-the-metre or anywhere else in the distribution system—have been making rapid inroads into power grids across the world. Pakistan is no exception.
Pakistan did show an interest in solar technologies, but this has remained focused on their deployment in the power grid. Though important, it's not the only or even the best avenue for their uptake. The only initiative from the government to promote distributed solar has been its net metering schemeintroduced in 2015. Most other behind-the-metre solar PV systems have not merited any incentive from our governments.
Precise statistics for distributed solar in the country are not available from official sources but a recent report by "pv magazine" terms it "booming" as the import of PV panels saw a rise from 2.8 GigaWatt (GW) in 2022 to 5 GW in 2023 and may reach 12 GW in 2024. By June 2023, the total number of net metering connections had reached 63,703 with a cumulative capacity of 1,505 MW. The annual addition of new consumers to this list was around 1,596, with a cumulative capacity of 221 MW in 2023.
These statistics indicate that the number of net metering connections and their magnitude are still low, but electricity consumers in Pakistan are opting for non-grid interactive systems in rapid strides to reduce their electricity bills which have become unaffordable.
The rigid mindset of power sector functionaries, from top to bottom, is directly responsible for this alarming trend. They have treated consumers as captives to the grid and have used them to dump all the misgovernance costs. They are still not willing to wake up to the new reality that the consumers now have multiple choices. Distributed solar is just one of these and is destined to grow even more if the grid supply remains unreliable and expensive.
Distributed solar offers many benefits. It can avoid investments in the grid and reduce losses, help manage demand, support grid operation, avoid environmental pollution, spur local industrialisation, promote employment, reduce reliance on imported fuels, and enhance national security and sustainability.
Their presence in the grid does pose some technical challenges. In addition to the two-way flow of power, they add to issues like loss of frequency and voltage control, risks of backfeed to the upstream transmission systems, and impair the power quality.
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.
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.
A solar power policy crisis for Pakistan - Asia Times
https://asiatimes.com/2024/05/a-solar-power-policy-crisis-for-pakistan/
Search Labs | AI Overview
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J3gAAAAASUVORK5CYII=
P3faM9o1AEAa00uUOyK7dUAAAAASUVORK5CYII=
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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.
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