SOLAR ENERGY APPLICATIONS VIABLE IN PAKISTAN

Seeing Solar Energy Potential in Pakistan, it is envisaged that most of the solar energy
applications that are being used around the world are very much practical in the country.
Photovoltaic (PV)
Studies conducted by the World Bank and some national agencies in Pakistan suggest
that PV power systems become competitive with conventional energy sources for small
power applications such as for telecommunication in remote areas. If installed, about 20
MW PV installations will generate an average 32.195 million kWh of energy annually on
a 35% annual plant factor. Since the cost of implementing the option is much higher than
the benefits available, the implementation of PV option has not met any considerable
success over the years. The manufacturing and assembling of plants and equipment
would improve the employment level in the country and reduce solar costs.

OFF-GRID APPLICATIONS OF SOLAR PHOTOVOLTAIC (PV)

Solar Photovoltaic Technologies can be deployed for various off-grid applications as
given below:
Solar street lighting
Street lighting shares around 300 MW of total electricity consumption of the country. It is
anticipated that this load would reach to around 500MW in coming days due to new
installations in planning and design stages. All such load can be shifted to solar energy.
Solar Street Lighting Systems powered through Solar PV modules can meet with this
load. The development authorities in the country are exploring the opportunities of this
shift. Their planning departments are currently working out prospects for making all new
installations of street lighting through solar energy applications.
Commercial Lighting (Bill Board Lighting, Search Lighting, garden lighting etc.)
Commercial lighting load is increasing as the life style of the people is changing. The
provincial and city governments are planning to shift all this much load to solar energy.
This renders a potential of around 5 MW for solar PV modules in coming days.
Solar Water Pumping
The irrigation system in most of the Arid Agricultural Areas is either dependent upon rain
or water pumps. This load accounts for more than 1,000 MW Currently, these pumps are
either operated through grid or through diesel generators. The federal and provincial
governments are planning to shift this load to solar energy. Efficient solar energy water
pumps are available in the market. The companies that are supplying pumps can be
contacted for supply of PV modules.
Rural Electrification
Under Roshan Pakistan Program and Parliamentarian Schemes for Rural Electrification,
more than 8,000 villages are going to be electrified through renewable energy
technologies. A big share out of which would be done through solar home systems
powered through solar PV modules. If 80% out of these are electrified through Solar PV
module of 80 W capacity, than this accounts for a total load of around 25 MW in coming
days.
Captive Power Generation through Solar PV Application
Government has allowed captive power generation through renewable energies. In this
regard, no license or approval from any governmental authority is required. If found
economically suitable, than solar PV module can be the best choice for this purpose. It is
anticipated that if 100,000 households opt for captive power generation through solar PV
modules than this can account for 30 MW requirement for solar PV modules in near future.

ON-GRID APPLICATIONS OF SOLAR PHOTOVOLTAIC (PV)

As like off-grid applications, Solar Photovoltaic Technologies have definite prospects for
various on-grid applications. A few of them are discussed below:
Commercial Power Projects
A huge acreage of land is lying barren in different parts of the country. The areas that are
located in most potential areas and where grid is also available, photovoltaic technologies
can be deployed for on-grid power generation project. Grid tied power projects of various
capacities can be installed in various parts of the country. A few investors are intending
to initiate grid tied PV projects of 2 – 5 MW capacity. If one or two successful projects of
such capacities are executed, a lot many investors will jump into such projects.
Net Metering Projects
Government of Pakistan allows the opportunity for net metering to the households,
commercial and industrial entities. Under such mechanism a small power producer
establishes a power producing facility at its premises. The power generated through this
facility is sold to the national grid. In the same time the individual acts like the user as well
and purchases the power from the grid. At the end of the month, the individual is liable to
net meter his actual consumption and total power generation through his facility. The
individual is liable to pay or to be paid the difference of amounts calculated through
aforesaid mechanisms. The small investors are eyeing at this opportunity and would be
looking forward to execute such projects in near future. In fact more than 2 projects are
already running on this concept. Solar energy would be having the maximum prospects
and would see its maximum market share if this concept got popularized. It is anticipated
that through such applications, the PV industry would see an annual requirement of more
than 50 MW.
Solar Thermal – Electric
Solar thermal technologies collect the sun’s radiant energy to create a high-temperature
at the source that can be converted into electricity via a number of thermodynamic
conversion cycles. Though solar thermal generation system is a proven technology in the
USA, Germany and France where such systems have been providing electricity to grid
systems on a competitive basis with conventional fossil fuel-fired thermal power plants,
no solar power plants exist in Pakistan at present. These technologies are currently in the
development and demonstration phase in the country.
Solar Building Technologies
Active heating systems provide hot water for space heating with mechanical assistance
while passive heating and cooling systems use little or no mechanical assistance and rely
rather on the design of the building to achieve specific thermal requirement goals. The
application of solar building technologies is assessed to be high in Pakistan. However,
the country does not have building regulations, which support the applications of solar
building technologies. The Building Energy Code developed by ENERCON includes a
chapter on solar technologies but this document is only for voluntary compliance and has
not so far been adopted formally by any municipality.
Solar Water Heaters
According to a Household Energy Survey Study (HESS) Project conducted by the
Planning Commission in 1991, water heating in the domestic sector is estimated to have
 consumed about 145,600 TOE of natural gas. Companies in Pakistan manufacture these
devices commercially. This amount of energy and corresponding emissions will be saved
for every solar water heater that is installed. The initial investment cost of manufacturing
solar water heaters will be higher than that of the natural gas and electric water heaters
already available in the market. Consumers experience 10-20% higher prices when they
choose a solar water heater instead of a conventional water heater. However, by
replacing conventional water heaters with solar water heating systems, significant amount
of natural gas will be saved annually. The cumulative potential of GHG emission reduction
of the solar water heater option has been projected as 4.10 million tons of CO 2 by 2020.
The saving in emissions will arise from reduced natural gas consumption for water heating
in the domestic sector.


As service provider install equipment, operate it after sale services period (e.g. for
one year), train the project team of client and after one year hand over the equipment
to client. In this model, the client has to bear the capital and operational costs
upfront.
 As energy services provider, offer a package deal to the customer for installing
equipment operating it for after sale services period at its own cost and get the return
of investment in installments.
 Involve banks for providing loans to the clients to set up such plants with a pre-
condition to use their product. The client then pay backs the price / loan to the bank
in installments.
ii. Industrial and commercial sector enterprises use solar energy to meet
energy needs
The solar energy can be used to generate heat required for running boilers of the
industrial units. Solar systems can also be installed to supplement heat requirements of
large industries. The industrialists are promoted to use solar energy to meet their energy
demands. This may include using solar energy for water heating, space heating and
cooling, steam production for the plant etc. This contributes in improving economics,
promote using solar energy instead of fossil fuels to generate heat and electricity, and
improve overall economics, reduce the production costs, making heat and electricity
available as and when it is required by the entities.
iii. Domestic sector promoted to use solar energy applications to meet their
energy needs
The domestic sector is promoted to install captive units for heating and cooling of their
houses. Solar water heating systems can be installed to:
a. Meet water heating requirements of the households
b. Supplement existing heating systems by pre-heating water
This helps in reducing their fossil fuel consumption and reducing their domestic energy
bills.
The domestic sector is also promoted to install solar PV systems at their roof tops for
captive as well as for net metering purposes. In captive systems, the domestic sector
installs solar PV systems to meet large share of their electricity needs. In net metering,
the customers are encouraged to use equipment that helps the system connected to the
distribution grid. The electricity generated through installed solar PV systems is used to
meet electricity needs and surplus is dispatched to the distribution grid. The consumer is
billed for the net of electricity consumed from the grid and dispatched to the grid.

PROGRESS SO FAR MADE IN SOLAR POWER SECTOR IN PAKISTAN

Solar Energy can play a vital role in Pakistan to overcome the energy
shortages in the Country. Pakistan lies in an area of one of the highest solar
insolation in the world. This vast potential can be exploited to produce
electricity, which could be provided to off-grid communities as well as on-grid
to National Grid in the northern hilly areas and the southern and western
deserts.

Government of Pakistan is offering excellent incentives to investors for solar power development in the
country. Investors have been offered lucrative fiscal and financial incentives that are of key interest for
them to come to this market. Provincial governments, particularly Punjab Government, are also
facilitating development of solar power in Pakistan. Though we started late to develop solar PV power
projects, i.e. in 2009, however, now we are at stages where serious projects are coming up.

At present, 28 projects of 956.8 MW capacity are under development within the framework of AEDB
policies and procedures. These projects are at various stages of development. The expected timelines
for their commissioning are as follows:

Year Yearly Cumulative Capacity (MW)

2015 100

2016 400

2017 730

2018 1556

Upfront Tariff has been awarded to 11 IPPs for 472.48 MW by NEPRA; Following 07 projects of 72.48
MW projects are in process of achieving financial close. 200 MW Solar PV Power Projects are installed
100 MW by Quaid-e-Azam Solar Power (Pvt.) Ltd. 200 MW is under construction (100 MW by M/s Best
Green Energy Pakistan (Pvt.) Ltd. & 100 MW by M/s Crest Energy Pakistan Limited).

11.52 MW M/s Access Solar (Pvt.) Ltd. Upfront Tariff US Cents 15.77/kWh
 10 MW M/s Access Electric (Pvt.) Ltd. Upfront Tariff US Cents 15.77/kWh

10 MW M/s Bakhsh Solar (Pvt.) Ltd. Upfront Tariff US Cents 15.13/kWh

10 MW M/s Safe Solar (Pvt.) Ltd. Upfront Tariff US Cents 15.13/kWh

1 MW M/s Blue Star Hydel (Pvt.) Ltd. Upfront Tariff US Cents 15.77/kWh

18 MW M/s Harappa Solar (Pvt.) Ltd. Upfront Tariff US Cents 12.10/kWh

12 MW M/s AJ Power (Pvt.) Ltd. Upfront Tariff US Cents 12.10/kWh

NEPRA has announced amendment in Grid Code for solar PV power projects on June 30, 2014 and
Standard Project Security Documents (EPA, IA) have been approved by the ECC on March 19, 2015. The
standard Solar PV documents are prepared to account for latest determination and direction issued by
NEPRA with regards to tariff. The templates of standard EPA and IA are available at download section.

New Upfront Tariff for Solar PV Power Projects

NEPRA, vide its determination dated December 16, 2015 has announced revised new upfront tariff for
solar PV power projects at following rates applicable from 1 January 2016 for a period of six months.

Levelized Tariff for Solar PV Power Projects (US Cents/kWh)

North (LIBOR) South (LIBOR)

1 - 20MW 21 - 50 MW 51 - 100 MW 1 - 20MW 21 - 50 MW 51 - 100 MW

11.5327 11.4460 11.3560 10.8920 10.8101 10.7251

The upfront tariff for Solar has allowed SINOSURE coverage, brought more clarity on degradation,
revised tariff sharing mechanism after benchmark energy to create incentives for efficiency has issued
clear directions to NTDC and DISCOs to approve the grid connectivity and simulation studies to the
effect that solar based power will be evacuated in accordance with the project timeline.

Projects initiated under Provincial LOIs.

AEDB is offering Federal Govt. Guarantee to projects initiated under provincial LoIs, provided they
obtain a tripartite LoS (AEDB, Prov. Govt. and IPP). Required amendment in the RE Policy 2006 has been
approved by ECC on May 21, 2015. Standard Templates of TLOS, PG, Facilitation Agreement and
Coordination Agreement have also been approved by the ECC.

The developments in the solar sector, the demand for new generation and GoP’s plans to harness clean
sources of energy have resulted in creating interest from several local and foreign investors for
developing solar power projects in Pakistan. There is a huge interest developed for investment in the
solar sector.
 AEDB’s SUPPORTING MEASURES
Several measures have been undertaken by AEDB to create an enabling environment for development
of solar power in Pakistan. A snapshot of the same is given below:

Amendment of Grid Code for Solar Power projects has been initiated with the support of CPPA/NTDC;

Standard project documents are developed;

Building lenders' confidence through supportive measures and introduction of almost all leading
manufacturers of the world in the local market to supply ARE equipment;

Work with NEPRA on offering an Upfront tariff for RE projects in line with other countries of the world
for quick development of RETs;

Capacity building of provincial governments through technical assistance / facilitation;

Duty / tax exemptions on RE equipment;

Development of private businesses in RE technology;

Promotional activities through international and local conferences, exhibitions and road shows with
active participation of media, undertaken to address the issues of consumer shyness and acceptability of
RE technologies;

Development of local capacities for EPC services and for manufacturing of towers locally;

Supporting private sector in addressing their administrative issues;

Building capacities of the public sector institutions in solar power projects

AEDB EXISTING SOLAR PV POWER PROJECTS WITH STATUS

Project LOI Issuance Generation E
ny Location Tariff LOS
Capacity (MW) Date License &

No.NEPRA/TRF-
Pind Dadan No. SPGL/05/2014
ess 258/AEPL- B/3/2/SPV/AEPL/LOS-4 M
11.52 Khan,District 30-Jul-11 dated June 26,
vt. Ltd. 2014/3022-3024 dated December 22, 2014 M
Jehlum, Punjab 2014
March 28, 2014

No. NEPRAJTRF-
Dharanwala,
262/BEPL- SPGL/06/2014
hsh District B/3/2/SPV/BE/LOS-2 M
10 11-Jul-12 2014/15281-15283 dated June 26,
vt.) Ltd. Bahawalnager, dated October 1, 2014 D
November 24, 2014
Punjab
2014

grated Nooriabad, S
50 3-Jul-13 Awaited Awaited NIL
Solution Sindh J

i& Nooriabad, S
50 3-Jul-13 Awaited Awaited NIL
tes Sindh J
ar Blue Nooriabad, S
50 3-Jul-13 Awaited Awaited NIL
. Sindh J

No. NEPRA/TRF-
SPGL/07/2014
e Solar Bhawalnager, 261/SSPPL- B/3/2/SPV/SSPPL/LOS-6 F
10.2816 13-Jan-14 dated September
Pvt. Ltd Punjab 2014/3993-3995 dated D
12, 2014
April 22, 2014

No.NEPRA/TRF-
Pind Dadan SPGL/03/2013
ess 256/ASPL- B/3/2/SPV/ASPL/LOS-3 M
10 Khan,District 13-Feb-14 dated Aug 22,
Pvt. Ltd. 2014/3029-3031 dated December 22, 2014 M
Jehlum, Punjab 2013
March 28, 2014

. Solar I M
20 Dadu, Sindh 21-Apr-14 Awaited N/A NIL
. M

. Solar II M
20 Dadu, Sindh 21-Apr-14 Awaited N/A NIL
. M

Energy
Sultanabad,
SPV: M
12 Rahim Yar Khan, 27-May-14 Awaited N/A NIL
ar (Pvt.) M
Punjab

Energy
Mehmood Kot,
District M
pir Solar 12 27-May-14 Awaited N/A NIL
Muzafargarh, M
Pvt.)
Punjab

No. NEPRA/TRF-
Pind Dadan
ar Hydel 274/BSHPL- SPGL/10/2015 M
1 Khan,District 27-May-14 B/3/2/SPV/BSHPL/LOS-5
. 2014/13265-13267 dated Feb 3, 2015 D
Jehlum, Punjab
October 24, 2014

No. NEPRA/TRF-
Pind Dadan
ar 315/BSEPL- SPGL/11/2015 M
1 Khan,District 28-Nov-14 NIL
Pvt. Ltd. 2015/10432-10434 dated Feb 16, 2015 D
Jehlum, Punjab
July 13, 2015

ons J
50 Chakwal, Punjab 5-Dec-14 N/A N/A NIL
d. M

No. NEPRA/TRF-
SPGL/15/2015
a Solar 324/HSPL- M
18 Sahiwal,Punjab 31-Dec-14 dated June 29, B/3/2/SPV/HSPL/LOS-7
d. 2015/9991-9993 D
2015
July 2, 2015

No. NEPRA/TRF-
SPGL/16/2015
er (Pvt.) Adhi Kot, 335/AJPPL- M
12 6-Feb-15 dated October 6, B/3/2/SPV/AJPPL/LOS-8
Khushab, Punjab 2015/14843-45 D
2015
October 9, 2015
e Power Noorsar,
D
ion Pvt. 10 Bahawalnager, 2-Mar-15 N/A N/A NIL
D
Punjab

e Gharo ,Thatta, J
50 17-Apr-15 N/A N/A NIL
n) Sindh J

r (Pvt.) D
50 Attock, Punjab 22-Apr-15 N/A N/A NIL
D

r (Pvt.) Gharo, Thatta, D

25 22-Apr-15 N/A N/A NIL
Sindh D

lar (Pvt.) D
50 Sindh 6-Jul-15 N/A N/A NIL
D

Sambrayal, J
Energy
2 District Sialkot 8-Jul-15 N/A N/A NIL
d. M
Punjab

Noorsar, D
trolium
30 Bahawalnagar, 3-Aug-15 N/A N/A NIL D
Punjab

Mukhayal, Kalar
lar (Pvt.) D
2 Kahar, District 11-Sep-15 N/A N/A NIL
D
Chakwal, Punjab