- Consistent policies and investments as key to sustainable energy and economic growth
In response to the prevailing high prices of imported fossil fuels in global markets, which result in high electricity tariffs and drain precious foreign exchange, the government of Pakistan has accepted the Framework Guidelines for Fast-Track Solar PV Initiatives 2022 for the fast-track deployment of solar PV.
It’s clear that Pakistan is making significant strides towards integrating solar PV into its energy mix to combat high electricity tariffs and reduce reliance on imported fossil fuels. The initiatives outlined, such as fast-tracking solar PV projects, promoting solar generation on 11 kV feeders, and solarizing public buildings, are crucial steps. The country’s vast solar potential, coupled with declining solar panel prices, presents a promising opportunity for sustainable energy development.
First substitution of expensive imported fossil fuels with solar PV energy; under this initiative, solar-based power generation capacity shall be solicited to substitute expensive imported fossil fuels used for power generation. This will lower the average basket cost of generation for the system through using solar energy during the daytime in substitution of the imported fossil fuels-based thermal generation at that time while using the same thermal power generation capacity at night to meet the peak demand at that time.
The Government of Pakistan plans to add almost 6,000MW of solar PV capacity under this initiative chiefly by competitive bidding. The three (03) solar PV projects of 2,400MW cumulative power generation capacity will be implemented shortly. These are the 600 megawatt peak (mwp) solar project at Kot Addu/Muzaffargarh, the 600 mwp solar project at Jhang, and the 1200 mwp solar project at Layyah. Second is the solar PV generation on 11 kV feeders; many electricity consumers in Pakistan suffer from poor power quality. Decentralized, medium-scale solar PV power can contribute cost-efficiently to alleviate some of these issues through feeding directly into the medium-voltage (mw) network, thereby enhancing the local losses and voltage condition.
Furthermore, the injection of solar PV power into the mv network would provide cheap electricity to the national grid without any augmentation or significant upgrade of the grid infrastructure. Accordingly, solar PV projects with a suitable capacity of up to a maximum of 4 mw will be procured by a competitive bidding process at the 11 kV feeder level. It is envisaged that almost 2000MW of solar PV capacity will be added under this initiative. Third is solarization of public buildings; solarization of public sector buildings will help meet a particular portion of the electricity load by clean solar energy technology, decline the electricity bills of public offices, and relieve electricity utilities/ distribution companies from long-term dues. Under this initiative, building-specific solar PV net-metering-based systems are being installed by bidding. This initiative is expected to result in the installation of 1000MW rooftop-based solar PV capacity.
It is said that the economic condition of Pakistan is devastated, and every year, the government of Pakistan tends to add additional tariffs on electricity consumption to manage the fiscal deficit. The present rise in per unit is a clear indication of this situation.
Sources recorded that the government of Pakistan has established lofty objectives, such as 30 percent of the nation’s power coming from renewable sources by 2030. Through the Alternative Energy Development Board, the government is attempting to construct solar power facilities nationwide to meet these objectives.
Experts showed that our country possesses significant potential for renewable energy sources, mainly solar energy. Only 0.071 per cent according to World Bank reports, of Pakistan’s total area is sufficient to fulfill the entire country’s electricity demand if solar systems are installed.
Unluckily the price of solar panels has plummeted by over 60 per cent in Pakistan presently because of bulk imports from China due to lower rates, with more consumers switching to renewable sources of power to decline electricity bills.
Statistics showed that the cost of producing solar panels in China, which accounts for about 80 percent of global consumption, plummeted by 42 per cent in the last year, giving manufacturers there an enormous advantage over rivals in places like the United States and Europe. Multiple European solar manufacturers have proclaimed plans to close factories in recent months, under price pressure from Chinese imports. China accounts for 80 per cent of solar module production capacity after years of subsidies.
No doubt, our country has ideal climatic conditions for solar power generation, with over nine hours of sunlight in most parts of the country. According to the World Bank, utilizing just 0.071 percent of the country’s area for solar photovoltaic (solar PV) power generation would meet Pakistan’s electricity demand.
According to the National Electric Power Regulatory Authority (NEPRA) only 5.4 percent of Pakistan’s installed power generation capacity of 39,772MW comes from renewables like wind, solar and biomass, while fossil fuels still make up 63 per cent of the fuel mix, followed by hydropower at 25 per cent.
Prices of solar panels dropped in China following import curtailment from major buyers including India, US and Europe while the government of Pakistan had abolished a 17 per cent sales tax to encourage solar imports. Despite the advantages, including to the environment of zero carbon emissions from solar panels, our country is far behind in meeting its goal of shifting to 60 per cent renewable energy by 2030 with 50 per cent reduction in projected emissions.
Conclusion
Our country needs to follow consistent strategies regarding renewable energy to meet its national and international obligations for greenhouse gas emissions. Solar energy from nearly every aspect is the best available solution for Pakistan to overcome electricity outages and attain higher generation rates. However, to truly make it a viable solution for the country, the government of Pakistan still needs to formulate policies that encourage not only local but also foreign investors to invest in the solar industry.