Renewable energy in Pakistan

[ghazi52]

Sindh to start World Bank-assisted project next month

Aim is to energise 200,000 rural homes using solar power

May 30, 2021
Azeem Samar,

The Sindh government is going to start from next month a World Bank-assisted project to energise 200,000 homes in far-flung rural areas of the province using solar power.Image Credit: Reuters


Karachi: The Sindh government is going to start from next month a World Bank-assisted project to energise 200,000 homes in far-flung rural areas of the province using solar power.

The decision to this effect was reached as Sindh Chief Minister Syed Murad Ali Shah chaired a meeting here at the CM House.

The project will be implemented in the districts of Khairpur, Sanghar, Badin, Ghotki, Jacoabad, Kashmore, Qambar-Shahdadkot, Tharparkar, Sujawal, and Umerkot.

The project is being initially launched in the districts of Sanghar and Khairpur. The vendors of the project in the two districts has been selected by the government.

In each of the district, 20,000 homes will be energised using the solar power. The total cost of the project is Rs four billion.

Sindh Chief Minister highlighted the aspect of the project that it would ensure uninterrupted power supply to the destitute people of the rural areas.


Electric supply

He said that such households should be selected as the beneficiaries of the project, which didn’t earlier have regular electric supply and that also lacked the capability to get the regular power connection.

Each of the selected household will be given a Solar Home System (SHS) comprising of PVC Solar Plates, a lithium-ion battery, three LED bulbs, a DC fan, and a port for charging the cellular phone. The 50 per cent cost of the SHS will be borne by the Sindh government while rest 50 per cent will be paid by the recipient household.

The 60 per cent recipient households of the project will be such families whose head is a female while 40 per cent selected households will be those where a male member heads the family.

The initiative to solarise 200,000 homes in rural Sindh is one of the components of the World Bank-funded US $ 100 million Sindh Solar Energy Project with the aim to increase solar power generation in the province. The other components of the project include development of solar parks and utilising rooftops of the public sector buildings in Karachi and Hyderabad for solar power production.

Sindh to start World Bank-assisted project next month

Aim is to energise 200,000 rural homes using solar power

gulfnews.com

 

[ghazi52]

ISLAMABAD: The World Bank has approved $450 million in financing to support Pakistan’s transition to clean energy as the country aims to reduce its reliance on fossil fuel.

The project will help shift to domestic clean resources by investing in renewable energy generation, including hydropower and solar, in Khyber Pakhtunkhwa (KP) province. The project area includes Upper Dir and Swat districts.

The Khyber Pakhtunkhwa Hydropower and Renewable Energy Development Project will offer low-cost and low-carbon electricity and will support the economic development of communities near the hydropower and solar projects by creating jobs, and supporting infrastructure development and tourism activities.

“This project supports Pakistan’s goal to become a low-carbon, renewable energy-reliant economy by 2030 and contributes to its national target in reducing greenhouse gas emissions to combat climate change,” said Najy Benhassine, World Bank country director for Pakistan. “It will facilitate the expansion of renewable energy in KP by identifying and preparing solar and hydropower projects that are technically sound, environmentally and socially sustainable, and investment ready.”

The project would push the country towards cleaner energy. To incentivize locals, the renewable energy project also includes “a comprehensive skills training program to build technical capacity in identifying investment opportunities, preparing projects, and mobilizing commercial financing,” said Mohammad Saqib, project’s task team leader. “In addition, by installing solar photovoltaic systems onto hydropower assets, production capacity is expected to rise and generate greater return on investments.”


The total cost of the project is approximately $727 million. The World Bank is lending $450 million, which includes International Bank for Reconstruction and Development (IBRD) loan of $200 million with maturity time of 27 years and grace period of seven years, and International Development Association (IDA) credit of $250 million with maturity terms of 30 years and five-year grace period.

In July 2020, the State Bank of Pakistan doubled the scope of its renewable energy refinancing scheme from Rs1 billion to Rs2bn to encourage the production of clean energy.


Focus on renewables; Pakistan is eager to boost the share of renewables in electricity generation to 30 per cent by 2030. This will include mainly wind and solar power as well as geothermal, tidal, wave and biomass energy.

Pakistan’s current energy mix is mainly tilted towards thermal generation based on imported fuels. In FY19, nearly 40 per cent of country’s total electricity generated (and 55 per cent of thermal generation) was through imported fossil fuels that required US$4 billion (or 7 per cent of total import bill) in fuel payments for power generation, according to a World Bank report.

Pakistan’s power generation mix; Thermal electricity has the largest share in power generation, according to Pakistan Economic Survey 2019-20.

 

[Baz2020]

It will take a decade before the energy crisis in the country is over remember the distribution system is old.

 

[TheSnakeEatingMarkhur]

Work on 3 things

Transmission System
Artificial grids in small villages
Utilisation of small canals for water generated electricity..

 

[ghazi52]

Work on 3 things

Transmission System
Artificial grids in small villages
Utilisation of small canals for water generated electricity..

Yes, main problem is old transmission system.
Small hydrel power plants, there are lot of mini hydropower plants in KPK, need more in other areas.

 

[ghazi52]

Nepra for expanding renewable energy footprint to 30pc

The Newspaper's Staff
June 5, 2021

KARACHI: The National Electric Power Regulatory Authority (Nepra) intends to enhance the renewable energy footprint to 30 per cent over the next 10 years from the current 3pc of Pakistan’s overall generation capacity of over 35,000MW, Nepra Chairman Tauseef H. Farooqi said on Friday.

Addressing a live webinar on “Pakistan’s Energy Transition and the Road Ahead” hosted by K-Electric and Nepra, he said the current share of hydropower at 30pc should be included in the renewable energy mix which would enable Pakistan’s total progress in the renewable energy space to exceed 60pc in next ten years. This should result in an environmentally friendly and affordable energy mix in the country, he added.

“For renewable industry to innovate and thrive, Pakistan needs a transition in its generation, transmission and distribution system. Nepra has been constantly working to bring that very change and its actions are louder than words,” Mr Farooqi highlighted.

In her opening remarks, KE Chief Strategy Officer Naz Khan revealed that currently renewables have around 250MW of share in the utility’s total energy mix including almost 150MW from wind and 100MW from solar energy. She added that additional projects are in pipeline to increase the share of renewables to 350MW.

While moving accordingly as per guidelines and policies set by the federal government, KE looks forward to continuously increasing the share of renewables in its energy mix in the buildup to 2030, she said, adding that KE has stepped into the renewable energy space with the launch of its first ever subsidiary – K-Solar – which is another step to a greener and more sustainable future for our future generations.

Alternate Energy Development Board CEO Shah Jahan Mirza said that allowing purchase of power from solar and wind energy projects through competitive bidding remained one of the strong features of their new policy. This had never been done in Pakistan before, he claimed.

State Bank of Pakistan (SBP) Director of IH&SMEFD Dr Mian Farooq Haq said the central bank had introduced a financing scheme in 2016 to lend support in addressing climate change issues and to promote renewable energy.

The scheme is continuing to offer varied financing options ranging from Rs400 million to Rs6 billion for a broad category of entities and individuals. As of February 2021, financing of around Rs36bn has been extended to over 500 projects,” he added.


Published in Dawn, June 5th, 2021

 

[Surya 1]

Sindh to start World Bank-assisted project next month

Aim is to energise 200,000 rural homes using solar power

May 30, 2021
Azeem Samar,

The Sindh government is going to start from next month a World Bank-assisted project to energise 200,000 homes in far-flung rural areas of the province using solar power.Image Credit: Reuters


Karachi: The Sindh government is going to start from next month a World Bank-assisted project to energise 200,000 homes in far-flung rural areas of the province using solar power.

The decision to this effect was reached as Sindh Chief Minister Syed Murad Ali Shah chaired a meeting here at the CM House.

The project will be implemented in the districts of Khairpur, Sanghar, Badin, Ghotki, Jacoabad, Kashmore, Qambar-Shahdadkot, Tharparkar, Sujawal, and Umerkot.

The project is being initially launched in the districts of Sanghar and Khairpur. The vendors of the project in the two districts has been selected by the government.

In each of the district, 20,000 homes will be energised using the solar power. The total cost of the project is Rs four billion.

Sindh Chief Minister highlighted the aspect of the project that it would ensure uninterrupted power supply to the destitute people of the rural areas.


Electric supply

He said that such households should be selected as the beneficiaries of the project, which didn’t earlier have regular electric supply and that also lacked the capability to get the regular power connection.

Each of the selected household will be given a Solar Home System (SHS) comprising of PVC Solar Plates, a lithium-ion battery, three LED bulbs, a DC fan, and a port for charging the cellular phone. The 50 per cent cost of the SHS will be borne by the Sindh government while rest 50 per cent will be paid by the recipient household.

The 60 per cent recipient households of the project will be such families whose head is a female while 40 per cent selected households will be those where a male member heads the family.

The initiative to solarise 200,000 homes in rural Sindh is one of the components of the World Bank-funded US $ 100 million Sindh Solar Energy Project with the aim to increase solar power generation in the province. The other components of the project include development of solar parks and utilising rooftops of the public sector buildings in Karachi and Hyderabad for solar power production.

Sindh to start World Bank-assisted project next month

Aim is to energise 200,000 rural homes using solar power

gulfnews.com

This is excellent. Pakistan should keep investing more and more in renewable energy particularly in solar.

 

[ghazi52]

.,.

Consultation begins to revive stalled renewable energy projects​

Mushtaq Ghumman
February 26, 2023

ISLAMABAD: The federal government has initiated consultation for a way forward on dozens of stalled wind and solar PV projects under category-III, after being highlighted by Sindh and Balochistan governments, besides National Electric Power Regulatory Authority (NEPRA), which is interested in six stalled projects.

Prime Minister Shehbaz Sharif has constituted a Committee comprising Minister for Defence (Convener), Minister for Power, Minister for Commerce, Minister Human Rights, and Minister for Narcotics Control, Minister for Communication and Advisor to the Prime Minister on Establishment. However, later Minister for Law and Justice was also been included in the Committee.

According to PM’s directives, the Terms of Reference (ToRs) of the Committee shall include analysing the issues and recommending a way forward regarding stalled wind and solar projects of category-III of RE Policy 2006.

According to sources, Prime Minister Office has sought daily update on the directions of Prime Minister in this regard.

According to decisions of the Cabinet Committee on Energy (CCoE), duly upheld by the Council of Common Interests (CCI) while approving the ARE Policy, 2019, Alternative Energy Development Board (AEDB) has been mandated by the Federal Government to conduct competitive bidding among the Letter of Intent (LoI) holders set forth in Category-III of the CCoE decisions.

As per the decisions of the CCI, the Category-III projects are allowed to proceed ahead subject to becoming successful in the competitive bidding process to be undertaken by AEDB for each technology based on: (i) the quantum ascertained by Indicative Generation Capacity Expansion Plan (IGCEP); and (ii) confirmation of Interconnection Ready Zones (IRZs) by NTDCL.

The IGCEP 2021 approved by Nepra on September 24, 2021, allocates a quantum of 1000 -MW each for induction of wind and solar power capacity through competitive bidding by year 2024. Furthermore, the information/ confirmation pertaining to IRZs have also been provided by the NTDC/Discos.

According to CEO, AEDB, Shah JahanMirza, the category-III includes 31 wind projects with cumulative capacity of 2,139-MW and 69 solar PV projects of 4,193-MW. As per the eligibility criteria for Category-III projects, only the projects having valid LoIs and land can participate in the bidding process. Furthermore, the land of the LoI holders must be located within a certain radius of the IRZs.

As per the information gathered from the provincial energy departments, 22 wind projects of 1289-MW capacity and 27 solar PV projects of 1570-MW capacity with valid LoIs and land are falling under the IRZs provided by NTDC/ Discos.

Keeping in view the capacity of the LoIs with land falling under the IRZs and to create competition amongst the LoI holders, AEDB has proposed that a quantum equal to approx. 25% of the LoIs falling under the IRZs and having land available with them may be allocated for Category-III wind and solar projects which will bring approx. 322 MW capacity of wind and approx. 392-MW capacity of solar PV into the national grid.

As per the decision of the CCI, the LoIs of unsuccessful bidders (including those who do not participate in the bidding process) shall stand lapsed/b cancelled and the Bank Guarantees (BGs) provided against the LoIs will be returned in full.

AEDB, sources said, has sought consent of Power Division and Provincial Governments on the proposal enabling AEDB to proceed further with the competitive bidding process of category-III wind and solar PV projects. Further written confirmation in respect of lapsing/ cancellation of the LoIs of unsuccessful bidders may also be provided.

According to sources, Khawaja Asif-led committee has yet not started deliberations on the stalled wind and solar projects of category-III. The Committee will have to submit its recommendations to Prime Minister soon, after which a final decision will be taken.

Copyright Business Recorder, 2023

 

[ghazi52]

,..,
Chinese Solar modules are installed along roadside fuel stations and restaurants at Chitral in KP province, reduces electricity costs and makes it more economically viable, saving 6.3MWh of electricity and reducing carbon emissions by 5 tons per year.

 

[ghazi52]

,.,..

Chinese firms to promote renewable energy​

Solar goods exhibitor says Pakistan should opt for industrial transfer from China

APP
March 23, 2023

LAHORE: “The lately closed three-day Pakistan Solar Exhibition provides a unique platform to build partnerships with local governments and private sectors to find innovative solutions,” said Chinese exhibitor Howard Fu.

At this expo, “we display product solutions dedicated to the local market, so as to further promote the development of renewable energy in Pakistan.” Howard, Pakistan Country Director of a Chinese power supplying company, had a bumper harvest at the show, signing a total of 100MW+ distribution deals.

The product portfolio displayed in the exhibition includes residential solar-plus-storage solutions, commercial and industrial solutions, and “1+X” Modular Inverter for utility-scale markets.

Pakistan is a fast-growing country with chronically tight energy supplies. It has a clear competitive advantage in photovoltaic (PV) power generation due to abundant light and land.

More people are choosing renewable energy because of its competitive leveled cost of electricity (LCOE).

The increasing influx of foreign investment into the solar market encouraged by the government is also bringing more technology to the country. Pakistan has invested billions of dollars in solar projects to encourage businesses and individuals to invest in solar power and increase the share of renewable energy to 60% by 2030.

Mark Gong, Sales Manager of another Chinese power company, was optimistic about the solar energy industry in Pakistan and expressed his strong determination to continue participating in such exhibitions and play his part in raising public awareness of solar energy options to advance solar energy in the country’s metropolises and non-matrix regions.

“China is a leading country in PV. Pakistan lacks an industrial base for photovoltaic products, while it, as the sixth most populous country in the world with a huge consumer market and abundant human resources, has the advantages to undertake industrial transfer from China,” remarked exhibitor Eric Zhao.

It was the second time Eric has attended the solar expo, and he feels the heat of market atmosphere even more.

 

[ghazi52]

.,.,

Solar farms or polar farms​

When it comes to solar farms, there are customised conspiracy theories

Imran Jan
March 26, 2023

When humanity started manufacturing tools to make the work of human beings easier and more efficient and to make lifestyles more comfortable, there arose a serious need for more energy to run the industry that made those tools.

That was the crucial point in the history of energy making where humanity made a grave mistake, which led to consequences with which generations to come would have to fight. That grave mistake was to look for energy under the surface of the earth rather than above the atmosphere.

Humanity started digging for fossil fuel to generate energy to run the industries instead of using the energy the sun was drenching the earth with every day. We could have gone solar instead of going fossil. But we didn’t. Governments around the world range from utterly reluctant to somewhat inclined toward it. But I am sure of one thing about solar energy and its relationship with all the governments around the world: someday they would all tax it.

There is a strong urge in the United States right now to generate solar power. Tesla has plans to install vehicle charging stations which would be entirely run by solar power, meaning your Tesla or any other electric vehicle would charge directly from the sun. That being said, the United States is also home to the wildest conspiracy theories ever heard. Wind farms have suffered massive propaganda attacks from the far right groups such as that they are noisy and residents in the area cannot sleep at night, that they cause birth defects in Portuguese horses, and that the turbines break and fall in nearby areas potentially killing people. The last nail in the coffin is the online propaganda that wind farms do not reduce any carbon emissions.

When it comes to solar farms, there are customised conspiracy theories. Perhaps the most ridiculous one and yet believed the most is that solar farms suck the energy out of our sun rendering it useless for humanity in the near future. Another says that solar farms destroy arable land and create toxic air in the area causing cancer to those who live nearby.

There are many others but there is an interesting thing happening right now: the activists who have been led to believe in those conspiracy theories are protesting out of genuine concern for their communities and they are joined by those industry players who benefit from the spread of such conspiracy theories.

Not just the fossil fuel industry but even the nuclear energy industry also feel threatened by the increase in the energy market share and potential overtaking of the US energy market by solar and wind energy production means. Currently, only about 3.4 % of the US energy production happens through solar means. That is going to dramatically increase over the years if the United States has to slow down and eventually stop carbon emissions resulting from dirty energy.

When solar farm plans are advertised in any community across America, wild conspiracy theories are suddenly born and spread across the internet. The result is a divided and confused population in the area with mixed feelings, if not total rejection, for the proposed solar farm.

The conspiracy theories play the role of slowing down, if not outright dismantling, of the plans for installing solar farms in various communities across America. This is one of the previous methods used by the tobacco and fossil fuel industries in creating doubt and dividing people over opinion. Michael Mann has written about it in his impeccable book The New Climate War and I wrote about it in this space as well.

It is quite a remarkable trait of human beings to be in favour of actions that are against their own interests. I mean really, why else would we be smoking cigarettes and driving gasoline run cars, while knowing we are actually committing a slow mass suicide. Science has fought against deadly diseases but it has made us deadly.

 

[ghazi52]

.,.,

Lucky Cement completes installation of 25MW captive solar power plant​

BR
August 21, 2023

Lucky Cement, one of Pakistan’s largest cement manufacturer, on Monday announced the successful commissioning of its 25MW captive solar power plant located in Karachi.

The development was shared by Lucky Cement in a notice to the Pakistan Stock Exchange (PSX).

“We are pleased to announce the successful completion and commissioning of our 25MW captive solar power plant located at our manufacturing site in Karachi,” read the notice.

The project was executed within the stipulated timelines and has commenced operations as of August 20, 2023.

“With this achievement, our installed power generation capacity for self-consumption from renewable sources now stands at 39%, including the 34MW solar power plant earlier commissioned in December 2022 at our manufacturing site in Pezu and the Waste Heat Recovery plants at both locations,” Lucky said.

The cement-maker said that the combined capacity of both solar power plants has significantly bolstered its commitment to renewable and clean energy.

“The investment in renewable energy initiatives will save costs and also reduce the country’s reliance on imported fuel. We remain committed to pursuing environmentally conscious initiatives in the future,” it added.

Lucky Cement’s profit-after-tax stood at Rs59.54 billion, an increase of over 63%, during fiscal year 2023, when compared with Rs36.42 billion in the corresponding period of the previous year.

The BoD also announced a cash dividend of Rs18 per share during the period.

Last year in March, Lucky Electric Power Company Limited, a wholly-owned subsidiary of Lucky Cement, successfully completed the commissioning of its 660MW supercritical, lignite coal-based power plant at Deh Ghangiaro, Bin Qasim, Karachi.

The power plant was synchronised with the national grid towards the end of CY 2021 and achieved Commercial Operations Date (COD) on March 21, 2022.

 

[ghazi52]

.,.,

A case for solar with battery storage​

Hammad Ahsan
October 23, 2023

As they say, “make hay while the sun shines”. The origin of the proverb may have been different for medieval English farmers, however, it applies to rooftop solar installations in Pakistan.

The utility prices of electricity have significantly increased in recent years due to various reasons, including but not limited to decades-old inefficiencies and missteps, that have plagued the power sector. The steep rise in power prices has compelled electricity consumers with means to carry out these installations, replacing consumption with inexpensive electricity generated during the day through photo voltaic (PV) solar.

The benefits are enormous as the owners, along with slashing their electricity bills, help create sustainable power, reduce carbon footprints, and help utilities to reduce generation using expensive imported fuels, thus enabling the country to conserve foreign exchange.

To understand the business case for solar installation, one must understand that depending upon the irradiation levels, solar produces energy (KWh) between 18 per cent to 22pc of the installed capacity.

Solar energy is generated while the sun shines, whereas usually, maximum electricity utilisation is during evening peak hours between 6pm-10pm. So, more often than not, solar produces energy that is more than what is required by a household during the day, and therefore, the concept of net metering kicks in.

A distributed generation facility can provide an average per annum return of more than 22pc

Consumers with net metered installations can sell their excess energy to the grid during the day and adjust their non-solar hour consumption with their earlier exported power. One can calculate the expected savings by taking the current grid price, hovering around about Rs42 per KWh, and assuming an average annual increment of at least five per cent throughout the remaining 25 years of the expected life of solar installations.

A prudent assumption is that solar production will only displace about 60pc of annual in-house consumption, while the rest will have to be sold to the utility at the national average power purchase rate, which is currently around Rs22 per KWh.

Accounting for key factors like the cost of capital, current capex, panel degradation, operations and maintenance (O&M), soiling losses, unavailability of solar due to grid failure and the time required for corrective maintenance, one would be able to produce solar power at approximately Rs17 per KWh.

Based upon these savings, the owner of the distributed generation facility will be able to pocket an average per annum return of more than 22pc on a rupee basis and a return of 12pc on a US dollar basis, calculated under the assumption that the rupee will lose about 9pc of its value against the greenback.

These numbers are staggering compared to alternate investments such as the yields offered by 10-year Pakistan Investment Bonds, which stand around 15pc and the 4pc-5pc yield offered by the long-term US treasuries.

Interestingly, there is an upside to this return if the power utilities prove to be more inefficient than the initial 5pc per annum assumption taken for this forecast. The added advantage is that the grid utility prices are also, in most cases, indexed with the Consumer Price Index, exchange rate parity, cost of capital etc. Therefore, the distributed generation returns are automatically insulated from these factors.

Before you fall for this rosy picture, knowing the inherent risks associated with these results is critical. There could be a scenario of lower than assumed PV yield due to cloudy weather, rains and high ambient temperatures.

Other challenges include equipment failure, excess panel degradation, high soiling losses due to panels not being cleaned on a regular basis, severe load shedding causing the unavailability of the grid, which is necessary for solar production, and increments in the amount of taxes currently being levied on the sale of electricity.

Further, under the current regime, conventional power generators offer the price of ‘ancillary services’ free of cost, and solar inherently lacks this capability. With the expected rise of solar penetration into the power mix, additional requirements for these services will likely arise, for which an incentive may have to be created, ultimately lessening the equivalent amount from the solar generators.

Moreover, there have been some deliberations in the recent past that the export price of net metered generators, which currently includes capacity as well as energy prices, should be reduced to the energy price only. Although it was not pursued, since the energy price hovers around Rs9 per KWh, this would have hit the earlier forecasted returns by at least 3pc to 4pc.

Due to the intermittent nature of solar and the excessive rise of its penetration in the grid, it is expected to provide constant headaches to the grid operators for balancing power. This issue can be overcome by incentivising the installation of a battery energy storage system (BESS), increasing the delta between peak and off-peak rates, which currently stands at Rs6 per KWh.

If this is doubled, then installation of four hours of stationary BESS, having a life of 10 years, starts making sense for the distributed generator as soon as the all-in capex of residential BESS starts coming below $150 per KWh.

For these workings, earlier mentioned grid price forecasts have been taken, along with other standard assumptions for the BESS like depth of discharge, round trip efficiency, O&M, the cost of capital, etc. Under the current BESS prices, the attractiveness of its installation is lower. However, it is bound to grow with the expected decline in its prices, along with a sharp rise in utility tariffs, making the case more viable.

 

[ghazi52]

.,.,.,

Global solar leaders set up new branch in Lahore​

By Wu Siya
Nov 20, 2023

LAHORE,– “Our team will remain steadfast in working towards a sustainable future for the country,” Ali Majid, General Manager of Pakistan, LONGi Solar, pledged at the launching ceremony of the MEA&CA Office in Lahore. On November 12, the global leader in solar technology has just taken a crucial step toward a green and sustainable future in Pakistan.

Murtaza Solangi (R3) and Ali Majid (R1) cut the ribbon

“The energy crisis has always been an indispensable issue that needs to be solved by successive Pakistani governments,” Murtaza Solangi, Minister for Information and Broadcasting of Pakistan who attended the ceremony, emphasized in his speech.

“Since the establishment of the China-Pakistan Economic Corridor (CPEC) a decade ago, Chinese enterprises have continued to invest in the field of renewable energy,” the Minister mentioned, “we’re deeply grateful for their increased investment to help Pakistan get out of its energy dilemma and hope that the new office will play a pivotal role in not only promoting employment, but also further optimizing Pakistan's existing energy structure.”

According to the National Electric Power Regulatory Authority's (NEPRA) 2021 yearly report, Pakistan’s total installed power generation capacity is 39772 MW, of which 63 percent of energy comes from thermal (fossil fuels), 25 percent from hydro, 5.4 percent from renewable (wind, solar and biomass) and 6.5 percent from nuclear.

The current proportion of renewable energy is far from enough. According to the revised Renewable Energy (RE) Policy, the government of Pakistan aims to derive 30 percent of energy from renewable sources by 2030 which would wean Pakistan’s dependence on imported fuel products.

Pakistan is located on a sunny belt with almost 300 days of sunshine per year and almost about 3000-3300 hours of sunshine per year. Receiving all this sunlight all year round, Pakistan has 2.9 million MW of solar power potential. Such unique conditions urgently require solar energy enterprises to promote transformation. 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 USD 400 million) in financing to over 1,175 projects with a combined capacity of 1,375 MW in renewable energy.

“The world needs an energy transition to more solar power. Currently, even though the sun shines everywhere, 80 percent of the world's energy is consumed by just 20 percent of the population, nearly 11 percent of people have no access to electricity and one-third of the population has no access to clean energy for cooking. We know harnessing solar power across the globe will improve local economies and the lives of billions of people.” Li Zhenguo, founder and president of LONGi, noted, also as a featured speaker at the ongoing Asia Pacific Economic Cooperation (APEC) CEO Summit in San Francisco on November 15.

Oil production investment VS solar investment, 2013 vs 2023 [International Energy Agency]

As solar energy attracts more capital than oil for the first time ever, Pakistan stands at a crucial juncture. By embracing the potential of solar energy and implementing the necessary measures, Pakistan can secure a sustainable, clean, and reliable energy future while reaping the economic benefits that come with the global shift towards renewable energy sources.