Solar Power/Energy

Solar energy, radiant light and heat from the sun, has been harnessed by
humans since ancient times using a range of ever-evolving technologies. Solar
energy technologies include

 solar heating
 solar photovoltaic’s
 solar thermal electricity
 solar architecture

Solar energy refers to the conversion of the sun’s rays into useful forms of
energy, such as electricity or heat. The amount of solar radiation a location
receives depends on a variety of factors including geographic location, time of
day, season, local landscape, and local weather.

Solar technologies are broadly characterized as either passive solar or active

solar depending on the way they capture, convert and distribute solar energy.

 Active solar techniques include the use of photovoltaic panels and solar
thermal collectors to harness the energy.
 Passive solar techniques include orienting a building to the Sun,
selecting materials with favorable thermal mass or light dispersing
properties, and designing spaces that naturally circulate air.

How Solar Power Works

It's as simple as this:

When the sun is shining, the photo voltaic panels of a solar PV system capture
sunlight and convert it into direct current electricity.The Solar PV system, using
an inverter, then converts this electricity into 240V alternating current electricity
which you can use around your home.Under a net feed-in system this electricity
then gets distributed for use around your property, and any excess electricity is
fed into the electricity grid through your electricity meter.Under a gross feed-in
system all of the electricity generated is fed into the electricity grid through your
electricity meter.You can see how solar PV Systems work below.

The parts that make it all happen.

Sound simple enough so far? It's a mixture of technology and Mother Nature that
makes using the sun’s energy possible. The main element involved in the
process is sunlight - the source of the energy. This is harnessed by your solar
power system, which is comprised of two main parts:

Solar panels - (also known as 'photovoltaic' or PV panels) - Used to capture the

sunlight and convert it into electricity.

An inverter - To convert the electricity generated by the solar panels into

electricity that can be used around your home, or fed into the electricity grid.

Solar Power Plants

Solar thermal power plants operate much the same as a conventional fossil fuel
power plants. They use the sun's rays to heat a fluid to very high temperatures
and then circulate the fluid through pipes so it can transfer its heat to water to
produce steam. The steam, in turn, is converted into mechanical energy in a
turbine and into electricity by a conventional generator attached to the turbine. A
common technology used to heat the liquid is a parabolic trough. This technology
uses reflective mirrors and lenses to concentrate the sun’s energy on liquid in a
tube running the length of the system. The liquid is heated to about 300 degrees
Celsius and used to produce steam that drives the electric turbine.
History of Solar Energy
Solar Energy History from 400 B.C. to the present day advances.Even when the
supply of fossil fuels seemed endless, there were those who were interested in
harnessing the power of the sun for energy. In 400 B.C. the Greeks were the first
to implement the sun’s rays for heat. During this time they began to orient the
placement of their houses to trap solar heat during winter.

SOLAR ENERGY HISTORY

18th CENTURY
Even though the first solar collector was built by Swiss scientist Horace de
Saussure in 1767, it would be another century before French inventor Auguste
Mouchout would patent a design for a motor to run on solar energy. His devices
turned solar energy into steam power.

19th CENTURY
In 1878 the first book about solar energy, A Substitute for Fuel in Tropical
Countries was written by William Adams. Using mirrors Adams was able to
power a 2.5 horsepower steam engine. His design known as the Power Tower
Concept is still in use today. The photovoltaic effect or the production of
electricity directly form the sun was discovered by Frenchman Henry Becquerel
in 1890. In 1891 American Clarence Kemp received a patent for the first solar
water heater.

20th CENTURY
The early 1900’s brings more knowledge and improvement to the quest for solar
power. In 1904 Henry Willsie built two plants in California. Willsie was the first
person to use solar power at night after generating it during the day. Still he was
not able to make sales and his solar company folded.

The 1950’s brings more development in the solar energy sector. The first solar
water heating system was placed in a commercial building as the primary source
for interior heat. The first commercial solar cells was also made available to the
public. Space programs made extensive use of solar power from the early 1960’s
to present day.
By the end of the 1970’s there were over 100 solar manufacturers in the United
States. With the energy crisis of the seventy’s, the realization of the importance
of solar energy to replace traditional energy methods became clear. From that
point until today solar energy has gradually received more and more interest and
support.

Today there is a renewed focus on solar energy. More people are recognizing
the need and the advantage of solar power. Solar cells are powering an array of
items from household appliances to cars. Solar electric systems now power
many homes and commercial businesses. The future of solar power to provide
inexhaustible power supply at affordable costs is great.

Applications of Solar Technology

Ventilation Using Solar Power

The energy created by solar power can be used to operate fans in your home like
the bath or the attic ventilation. The power from the solar energy can help you
clear the air, reduce moisture, and reduce yor home bills as well. Using solar
energy to run these fans will allow you to keep your air clean and clear without
worrying about the cost of your electricity to keep those fans running throughout
the day.

Swimming Pools with Solar Heat

Everyone loves swimming pools. It’s fun to swim in the summer, but it’s even
more fun to swim in the winter – if the pool is heated. With solar power, you’re
able to warm the water in any month where you have ample sunshine. Use a
solar quilt over the pool and you’ll be able to warm the water without having to
use any other form of electricity. Solar hot water heat is also possible through a
system where hot water is cycled through the heater and the swimming pool,
warming the water overall.

Solar Hot Water Heaters

Hot water isn’t just available for your swimming pool using solar energy. You can
provide hot water to any room in your house if you invest in a solar hot water
heater. Think of how much less you’ll spend than you do currently on your natural
gas heater or your electrical water heater. Of course, you’ll have to replace a
current hot water heater with a solar one, so it only really makes sense to do this
when you’re already installing a new hot water heater or when you’re planning to
build a home and haven’t installed one yet.

Warming Your Home with Solar Heat

Solar heat is a great way to warm up your rooms. You can use solar heat in
several different ways throughout your home to provide heat in the winter
months. Using sun-heated pipes of water on the roof of your home and then
moving into your water heater can help to warm some rooms through the piping.
You might also use a solar room with sun-filtering glass. The solar room, that is
usually made entirely of glass, will allow the sun to come into the room and then
the air becomes trapped, warming the room. Large stones that help to trap heat
is another way to contain heat in a room that is open to sun.

Pumping with Solar Energy

Having solar heated water isn’t that effective without a pump. A pump will need
energy to work, but fortunately you can also use a pump that runs on solar
energy to keep the water moving throughout the pipes and the furnace. Solar
power will run a DC motor or you can use solar-powered batteries to provide
some energy to a pump as well.

Power Your Home with Solar Energy

It is possible to power your home with solar energy. If you install enough solar
panels, you’ll be able to provide enough energy to keep the lights on, the
refrigerator running and the air conditioning working in your home. Even if you
don’t create enough solar power to work on your entire home’s needs, you can
provide some power to help cut down on the electric power used on your home.
If you were to actually provide more energy than you really need, you can even
sell your excess energy back to the power company, making a profit every
month.

Outside Lighting with Solar Power

The easiest way to use solar power without a significant investment is to install
solar lights around your yard. Solar lights absorb the sun’s energy during the day
and then shine their light in the evening hours. The lights can be used to set up
visuals on your pathway or perhaps even a spotlight or two to accent your
home’s most attractive features or landscaping.

Its proved ... that after our stores of oil and coal are exhausted the human race
can receive unlimited power from the rays of the sun.
—Frank Shuman, New York Times, July 2, 1916

Benefits of Solar Energy

1. Changing Relationships with Public Utilities

Homeowners and business owners who install solar panels on their property
enjoy more equitable relationships with their local utilities. Whereas conventional
arrangements between utilities and their customers require the latter to be wholly
dependent on the former, solar power users gain a measure of independence
from their utilities. Even if their solar panels don't produce all of the power that
they need on a daily basis, they'll need to buy less conventional power. If they
produce more power than they require, their utilities may actually pay them for it
at a fluctuating wholesale rate. For cash-strapped homeowners, this can turn into
a significant source of revenue.

2. Healthy Financial Incentives

Along with various state agencies, the federal government offers attractive
subsidies for private individuals who install solar panels or solar heating devices
in their homes. In certain jurisdictions, generous subsidies may be available for
businesses as well. Generally speaking, these incentives allow solar power users
to claim tax credits in proportion to the amount of generation capacity that they
install on their property. This reduces solar power start-up costs and increases
the profitability of the technology.

3. Minimal Environmental Impact

Although the production of solar panels does require some inputs of raw
materials and energy, solar power's environmental impact is minimal. The
technology produces none of the carbon, methane or particulate emissions that
fossil fuels emit, and it doesn't demand large-scale mining or drilling operations.
Since panel arrays can be placed on rooftops or in isolated desert areas, solar
power's physical footprint is manageable as well.

4. Labor-Intensive Production Regimes

The solar power industry's "innovation engine" has resulted in the creation of
tens of thousands of jobs in the last decade alone. Although proponents of
conventional energy technologies argue that the solar industry destroys more
fossil fuel-related jobs than it creates, this is a misleading claim. After all, solar
panel production is just a small facet of an overall industry that demands
contributions from installation technicians, salespeople, battery-storage
designers and other key players.
5. Geopolitical Benefits

Since the dawn of the fossil fuel age, the United States’ reliance on unstable or
hostile countries to supply oil, gas and other energy resources has caused plenty
of trouble. Indeed, the country's political and business leaders are often forced to
make unsavory compromises with shady or dangerous parties in order to
guarantee steady energy imports. Since all of the solar power that the United
States needs can be generated within the country's own borders, the technology
has the potential to eliminate this less-than-ideal reliance on imperfect actors. In
the long run, such a development could increase the economic and physical
security of every American citizen.

Disadvantages of Solar Energy

1. Initial Cost :

The initial cost of purchasing and installing solar panels always become the first
disadvantage when the subject of comes up. Although subsidy programs, tax
initiatives and rebate incentives are given by government to promote the use of
solar panels we are still way behind in making full and efficient use of solar
energy. As new technologies emerge, the cost of solar panels is likely to
decrease and then we can see an increase in the use of solar cells to generate
electricity.

2. Location :

The location of solar panels is of major importance in the generation of electricity.

Areas which remains mostly cloudy and foggy will produce electricity but at a
reduced rate and may require more panels to generate enough electricity for your
home. Houses which are covered by trees, landscapes or other buildings may
not be suitable enough to produce solar power.

3. Pollution :
Most of the photovoltaic panels are made up of silicon and other toxic metals like
mercury, lead and cadmium. Pollution in the environment can also degrade the
quality and efficiency of photovoltaic cells. New innovative technologies can
overcome the worst of these effects.

4. Inefficiency :

Since not all the light from the sun is absorbed by the solar panels therefore
most solar panels have a 40% efficiency rate which means 60% of the sunlight
gets wasted and is not harnessed. New emerging technologies however have
increased the rate of efficiency of solar panels from 40 to 80% and on the
downside have increased the cost of solar panels as well.

5. Reliability :

Unlike other renewable source which can also be operated during night, solar
panels prove to be useless during night which means you have to depend on the
local utility grid to draw power in the night. Else you can buy solar batteries to
store excess power which you can later utilize in the night.

6. Installation area :

For home users, a solar energy installation may not require huge space but for
big companies, a large area is required for the system to be efficient in providing
a source of electricity.

Other facts about solar energy:

 Solar energy can be used to heat water, dry clothes, heat swimming
pools, power attic fans, power small appliances, produce light for both
indoors and outdoors, and even to power cars, among other things.
 In 1990, an aircraft powered solely by the sun crossed the United
States.
  Solar energy products can be very expensive. The initial cost is,
perhaps, the main disadvantage of solar energy.
 To reach maximum level of efficiency you need a relatively large area
to install solar panels.
 Depending where you live (Arizona vs. Alaska, around many shady
trees or in the desert, etc.), you will get different results with solar
energy systems.
 If you have a really good solar energy system, one that produces even
more energy than you use, your utility company might buy that extra
energy from you.
 When you use solar energy, you and your home become independent
on foreign or other sources of energy which raise costs quickly.
 To run solar water pumps, you do not even need to connect to a gas or
power grid.
 Solar energy cannot be produced at night or if there is a lot of pollution
in the air or clouds over the sun.
 Of course, realize you can have a battery backup system for your solar
energy system that will take care of the problems that could arise when
the sun does not.
 You can install solar energy in remote locations.
 If there is a power outage, but you run on solar, you will still have
electricity!
 As your energy needs grow, you can add more solar panels
 Solar powered cars are not yet up to par with other cars. They have a
much slower speed.
 Technology for solar energy is constantly improving.

Solar Energy Projects are a Safe Investment

Nothing is certain but death and taxes. But most of us are confident that the sun
will keep shining. In light of that (pun intended!), we thought we’d take a look at
some of the reasons solar projects are relatively safe investments -- whether
you’re looking to put solar on your home or invest in a solar project elsewhere.
1. The sun will keep shining
Let’s face it: if the sun stops shining, we’ll have bigger problems than the safety
of our investments .But all signs point to the sun shining for another 5 billion
years. Most of us expect to recoup our investment before then.

And not only will the sun keep shining: It currently shines enough rays on the
United States every day to more than power us for 10 years. If countries like
Germany can make great use of this resource, imagine what we can do in the
United States, where we have a lot more sun. The sky’s the limit!

2. Solar is a proven and reliable technology

Solar panels have been around for a long time now and have proven their
reliability. So when you put your money in solar, you’re not investing in the latest
shiny object.

Some solar systems installed in the 1970s have lasted far beyond their
warranties and are still producing. And while it’s not a new technology,
improvements in recent years have made new systems even more reliable.

Solar is a relatively simple technology, with few moving parts. Solar panels are
durable and require little maintenance. They’re easy to install. This all adds up to
a low risk when it comes to solar technology.

3. Solar comes with standards and protections

In case you’re still worried about your solar system or your investment in a solar
project, manufacturers typically offer 25-year warranties for the equipment,
minimum production guarantees, and insurance to protect against events like
fires or hurricanes.

As more people look to solar as an investment opportunity, more safeguards are

being put in place. In a prominent example of this, a number of leading
businesses and research groups like DuPont, Standard and Poors, and the
Rocky Mountain Institute recently founded the industry consortium truSolar. Their
goal is to standardize the risk evaluation process for solar projects.
4. Solar projects are tangible
Investing in a solar project is not the same as investing in a company’s stock.
When you invest in a business, you can’t know how successful it will be. And the
stock market is so mysterious and volatile that a company’s announcement of
solid earnings can be met with a tumble in their stock price.

When you invest in a solar project, in contrast, you’re buying into a tangible
asset. And it’s an asset that depends on a proven technology using the rays that
we know will keep shining on it. That means the asset is likely to produce
revenue right away, and to keep producing it.

So if you put solar on your own roof, you can be confident that it will produce
power for you. And if you invest in a solar project elsewhere, you can know that
your investment is backed by a tangible, revenue-producing asset.

5. Solar saves money

Maybe you’re convinced by now that it makes sense to invest in a solar project.
But if you need one more reason, we have a good one for you.

Say you invest in a project backed by a revenue-producing solar asset. How do

you know the counterparties to your investment will hold up their end of the deal?
Like we said, nothing’s sure but death and taxes. However, the likelihood of the
counterparties defaulting is low. Why? Well, they’re already paying their power
bills (or they wouldn’t qualify for solar). The solar system will lower their bills,
making them even less likely to default. So solar not only lowers their bills -- it
lowers your risk.

Energy and renewable energy scenario of Pakistan

Pakistan total primary energy supply during fiscal year 2007–2008 was 62.88
MTOE (million tons of oil equivalent). More than 99% of this energy was supplied
through conventional energy sources such as oil, gas, hydel and nuclear, etc.
whereas less than 1% supplied through micro/mini renewable energy (RE) stand
alone installations while ignoring the fact that many times natural renewable
energy resource potential as compared to conventional energy resource exists in
the country. In order to facilitate development and generation of alternate or
renewable energy to achieve sustainable economic growth with transfer of
technology, Government of Pakistan established Pakistan Council of Appropriate
Technology (PCAT) in 1975, National institute of Silicon Technology (NIST) in
1981 and Alternate Energy Development Board (AEDB) in 2003. In May 2001
NIST and PCAT merged to become Pakistan Council of Renewable Energy
Technologies (PCRET) thus having two main departments, AEDB and PCRET,
in government sector for execution and implementation of renewable energy
projects. Due to lack of precise promotion instruments for renewable energy
technologies, the output of all solar and wind energy systems plus mini/micro
hydropower plants together amounted to less than 3 MW at the end of 1990s. In
1992, Pakistan National conservation Strategy (PNCS) was announced to
introduce biogas, wind power and mini hydropower facilities. In October 1997,
National Environment Action Plan-Support Programme (NEAP-SP) was signed
between Government of Pakistan (GOP) and UNDP.

The NEAP-SP includes six different sub programmes, one of which concerns the
field of energy conservation and renewable energy sources, and concrete
projects are to be implemented over the next 5 years. In 2005, AEDB was having
a mandate of generating 10% of the total installed capacity in the country from
renewable energy sources by 2015. But in spite of all these facts, an appreciable
amount of development could not be seen in the country resulting in ever worse
energy crisis in the country in the current year. In the following sections, a picture
about conventional and renewable energy utilization/generation is given along
with renewable energy projects being executed in the country. At the end, some
suggestions are proposed for effective dissemination of RET in the country.

Renewable energy
In Pakistan, potential for almost all types of renewable energies exists in the
country. These types include solar (PV and thermal), wind, biogas,
microhydel/canal fall, biodiesel production, biomass/waste to energy production,
geothermal, tidal/ocean energies, etc. Among these, biodiesel and
biomass/waste to energy production is under development or project
implementation stage whereas geothermal and tidal/ocean energies utilization
are in feasibility study process. We will discuss solar renewable energy(solar
energy) as our focus point.

Beginning of Solar in Pakistan

The first Solar Panels were installed by PTCL on super highway just outside
Karachi then adopted by Sui Gas for their reporting systems till Date Sui Gas is
the biggest consumer of solar technology in Pakistan .But that scenario is Fast
Changing Small Life Line consumers are adopting Solar technology all over
Pakistan Being helped by NGOs, provincial Governments and local communities.
solar Solutions are also being widely adopted in Agricultural Applications .Solar
Powered water lifting solutions are highly efficient, maintenance free, very cost
effective and very reliable. Solar powered Telecom Towers have been gaining
momentum over the past couple of years. Mostly due to Government pressure
and deadlines for telecom operators to switch to alternate energy.

Solar Energy – a Feasible Alternative for Pakistan

On average solar global insolation 5–7 kWh/m2/day exists in the country over
more than 95% of its area with persistence factor of over 85% [2–3]. The South
Western province of Balochistan and North Eastern part of Sindh offer excellent
conditions for harnessing solar energy where sun shines between 7 and 8 h daily
or approximately more than 2300–2700 h per annum. Despite the favorable
conditions, the use of solar energy for generating electricity or heating is still in its
beginnings. Mostly photovoltaic systems of generation capacity 100–500 W/unit
have been used for producing electricity in a few rural areas. According to a
survey report, more than 40,000 villages of Pakistan have no access to electricity
and it is expected that within next 50 years, it is difficult to electrify these villages
with present pace of development in the energy sector. As far back as the early
1980s, the Government of Pakistan had 18 PV systems with a composite output
of 440 kW installed in various parts of the country. Due to lack of technical know-
how about operation and maintenance, these systems were no longer in
operation in 1990s.Under such conditions PCRET started ensuring development
and sustainability of solar and other renewable energy projects in the country.
AEDB joined such efforts in 2003. But unfortunately both these governmental
organizations are so weak in financial and technical manpower resource to
imagine any breakthrough in near future. More than 20 manufacturers, suppliers,
etc. in private sector are active in solar energy business in the country. AEDB
electrified approximately 3000 households with total PV power generation of 200
kW in districts of Kohat (NWFP), D.G. Khan, Rawalpindi (Punjab), Thar-parkar
(Sindh), Turbat/Kalat(Balochistan) , etc. while providing 80Wpanel with lighting
system to each household. PCRET electrified more than 500 schools, mosques,
houses through PV power with total generation capacity of more than 80 kW. In
private sector, the PV installations in the country are approximately in the range
of 500 kW. In future PV stand alone micro projects are being planned in the
country instead of initiating any mega/macro PV project on commercial scale to
overcome the energy crisis of the country through available solar resource. In
solar thermal side, solar cookers (box and concentrated type), solar
dryers/desalination units, solar water heaters, etc. have been designed,
developed and are in limited use but their contribution in energy provision is
negligibly small. So the total installation appears to be much less than 1000 kW
in PV and 10,000 solar thermal units (all kind) in the country.

Solar Energy is available at a rate of 1000 watts per square meter in Pakistan
(about 19 Mega Joules per square meter of solar energy) according to the
Alternative Energy Development Board (AEDB) sources. This can be converted
to DC electricity with the help of Solar Photovoltaic cells, which may be used to
pump water, operate fans, TV and telecommunications directly during daytime.
The electrical energy generated during the day time (5-8 hours of sunshine), can
also be stored in deep cycle lead acid batteries which can be used at night to
provide power for lighting, radio, Television and fans. The system will be user-
friendly and designed as a stand-alone system for each household, who will be
trained to operate and maintain it. The user will only be required to switch on/off
the system, as is done in normal home lighting systems. In addition, Solar
Photovoltaic Panels can generate enough electricity to pump water from depth of
350 ft, 700 ft and up to 1000 ft.
Foreign direct investment
Foreign direct investment (FDI) refers to the net inflows of investment to acquire
a lasting management interest (10 percent or more of voting stock) in an
enterprise operating in an economy other than that of the investor It usually
involves participation in management, joint-venture, transfer of technology and
expertise.

Who is eligible to be a foreign investor?

 An individual or a group of related individuals

 An incorporated or unincorporated entity
 A public or private company
 A group of related enterprises
 A government body
 An estate (law), trust or other societal organizations

How to invest funds?

Foreign Direct Investment can be made in the following three ways:

 By incorporating a company in Pakistan

 Through acquiring shares in a domestic enterprise.
 Participating in an equity joint-venture with another investor or enterprise.

Importance

Foreign Direct Investment had been increasing at an encouraging rate from FY

2000 onwards. It reached a record inflow of $5.4 billion in FY 2008 but then
began a steep decline and is currently at about $ 1.57 billion. This sharp decline
in a mere 3 years period is an alarming signal for the economy because FDIs are
a major portion of the net inflows in the country. FDI is important for the growth of
every economy and its importance cannot be ignored for developing countries in
particular.
Pakistan’s FDI policy

The effects of Foreign Direct Investment are sometimes hardly perceivable, while
other times these can be utterly transformative. Although many factors affect the
impact of FDI in a country, well-conceived and well-implemented policies can
play a major role in maximizing its returns. The positive effects of FDI include the
constructive technological and trade effects along with a mixture of dynamic
externalities like clustering and reputation of the country while the negative
effects include a range of possible outcomes like anti-competitive impacts,
bidding scarce resources away from domestic firms or squeezing out domestic
supply networks. Pakistan has designed its investment policy in a manner to
make it attractive for the foreign investor by opening up the economy and
marketing the potential for direct foreign investment. Earlier manufacturing sector
was the only avenue for foreign investors interested in investing in Pakistan.

TREND OF FDI IN PAKISTAN

Currently, the total FDI in Pakistan is $ 1.57 bn. In order to analyze the FDI situation in
Pakistan over the years and as percentage of GDP, the following graphs can be useful.
The tables and diagrams provide a comprehensive view of the inflows coming in
Pakistan, their composition, contribution in different sectors and the major participants in
FDI in Pakistan.

Sector wise FDI inflows in Pakistan

Causative factors

International Factors

 Global Financial Crisis,(Recession in Eurozone and US)

 Global Commodity Prices (upsurge in food and oil prices)
 Regional security situation

Domestic Factors

 Macroeconomic stability
 Energy Shortages
 Infrastructure (rail/roads transportation and ICT)
 Contract enforcement
 Regulatory quality
 Financial and capital markets
 Taxation and tariff structure
  Innovation and Competition
 Quality and flexibility of Labor Markets
 Government footprint in markets
 Political stability/ policy continuity

FDI in Solar Energy Sector

Punjab government has decided to allocate 5,000 acres of land for private solar
power projects in the Cholistan which will be allotted to solar power sector
investors at a nominal rate of one dollar per acre per year for a 20-year lease.

Out of 5,000 acres of land, 2,500 acre land is situated in Maroot, Bahawalnagar
and the rest of 2,500 acres land is located on Din Garh Road, Yazman,
Bahawalpur.

China to create $3 billion solar fund for Pakistan

A Chinese company is ready to create a special solar fund worth three billion
dollars in China to support Pakistan in utilising its solar energy resources. The
company has the capacity to establish a solar plant of 1000MW in 6 to 8 months
in Pakistan, while 50MW to 100 MW solar energy can be produced in 120 days
only.
Germany starts financing renewable energy projects in
Pakistan
German company AEG is executing 400 MW and 50 MW solar energy projects in
Choolistan and investing Rs.100 billion in these projects. 50 MW project will start
generating electricity in June 2013 whereas 400 MW project will also be
completed within a year. German company AEG will charge at the rate of 18 cent
and sovereign guarantee will be sought from federal government for these
projects. Under the agreement, German company will install project of 300 MW
solar energy whereas Austrian company will cooperate in hydel power projects.
German company AEG for producing electricity at 18 cent. He disclosed that
federal government was interested to talk on 22 cent but now it has to give
sovereign guarantee at the rate of 18 cent. The Chief Minister said that Pakistan
is marching towards elections and German company will complete 50 MW solar
energy project in June

PEC approves mega solar park project

* Work on the project will soon start; chief minister will be the head of Quaid-e-
Azam Solar Power Company

Sharif said the Punjab government was working on energy generation projects
from various alternative sources and the most important project is setting up of
Quaid-e-Azam Solar Park on 10,000 acres land in Cholistan (Bahawalpur) for
which formal approval has been accorded to the master plan and funds are also
being released immediately.

He said all necessary facilities would be provided in solar park including school,
playground, community centre, mosque and dispensary so that engineers and
other persons could perform their duties devotedly.

Punjab government will set up projects of 700 megawatts in solar park from its
own resources and in the first phase, work will be started on eight projects of 50
megawatts each. He said that the solar park had been divided into 20 pieces,
with each of 250 acres of land and solar power project of 50 megawatts will be
set up on every 250 acres land.

He said there was also room for extension in solar park so that more energy
could be generated from this park, if required.

50MW solar power plant in Bahawalpur to be

largest in Pakistan
Karachi, Conergy joined with energy solutions provider, project developer Ensunt
to realize 50MW large scale solar power plant at Bahawalpur in Cholistan region
for DACC Power Generation Company Limited DPGCL which will be largest in
Pakistan, one of landmark project in entire Middle East and Indian region. It is
owned by DPGCL and Pakistan government which have now taken on Conergy
to provide overall planning, engineering, design to facilitate access to power
supply and make country less vulnerable to power outages.
Doug Melvin, President DPGCL, said: The 50MW plant is biggest solar project
for Pakistan government. Currently, the region is heavily dependent on
hydroelectric plants. Results are high fluctuations in energy supply, power
outages or shortages. We are even looking beyond 50MW.”
Marc Lohoff, Conergy Board Member said: Potential in Pakistan is enormous:
Currently, only 63% of country s total population is supplied with power. Due to
decentralized character of this form of energy and high insulation levels, solar
energy is ideally suited to close this gap and supply safe, clean, affordable
energy.”
Once plant is completed, 210,000 Conergy PowerPlus modules on some 210km
of SolarLine mounting systems will produce more than 78 gigawatt hours of clean
energy per year. Over 140 Conergy IPG 300C central inverters will then feed
solar power into Pakistan s grid, supplying 30,500 households with power.
Besides private households, agriculture will also benefit by using it to run water
pumps to water fields and crops.
Due to shortage, parts of the country can occasionally be left without any energy
supply for up to 18 hours a day resulting in lower productivity, economic
instability, social unrest. The government scrapped import duty on solar systems
creating investment incentives for solar plants. With 8-9 hours of sunshine per
day and annual insulation values of more than 1,700 kilowatt hours per square
meter, Pakistan’s climatic conditions are ideal.

Korean company interested in solar energy investment in

Balochistan

The company is interested in putting up a project of solar energy in Quetta. In

this regard, they are already in negotiation with the Balochistan Government and
they would be signing an MOA for the construction of 300 MW Power Plant
Project in Quetta.
They are interested to install a power plant project of up to 300MW of solar
energy in Quetta, and they would be signing an MOA with the Balochistan
government for that matter. The Balochistan government has already offered
them a piece of land of 1500 acres approximately near the airport.
As the first step, they would install 50MW, and then they would gradually
complete it upto 300MW in the form of six complexes/sub units. The
MOS/Chairman BOI welcomed them to start the project and encouraged them to
come up with various other proposals to invest in the energy sector of Pakistan..

ADB Targets Solar Power Projects in Pakistan

Asian Development Bank (ADB) will launch the Asia Accelerated Solar Energy
Development Fund with $2.25 billion as it targets solar power projects in
countries including China, India, Pakistan, Uzbekistan and Thailand to add
another 1,000 megawatts next year and 1,500MW in 2013, said a statement of
the ADB
Solar Energy coming to Punjab, Pakistan
A Memorandum of Understanding (MoU) on Solar Energy Project was signed
between the Punjab government and Germany’s Solar Power Project
Development Firm in Berlin, according to which the German firm would work on a
mega project for generation of solar energy in the province.

The German delegation vowed to visit Punjab in November to initiate a solar

energy project in the province.

Shahbaz sharif said that the Punjab government would extend maximum
possible facilities and incentives to the German companies as meeting the
challenge of energy crisis in an effective manner was the top most priority of the
Punjab government. Extending invitation to the German energy companies for
making investment in the energy sector of Pakistan, especially Punjab, the chief
minister said that large opportunities of electricity generation through coal, hydel
and thermal existed in Punjab.

“It’s the best thing I bought this winter,” says Sardar Azam, a former civil servant,
showing off his water-heating solar geyser installed on the terrace.

“Pakistan needs to produce 16,000 megawatts of electricity a day but only

manages 13,000 megawatts, according to the Pakistan Electric Power Company.

The shortfall means that millions endure electricity cuts for up to 16 hours a day,
leaving them freezing in winter and sweltering in summer while hitting industry
hard, exacerbating a slow-burn recession. Voters say it is their biggest single
concern, secondary to the war against Al-Qaeda and the Taliban, and so the
government has been increasingly vocal about redressing the problem as it eyes
elections within a year.

“Energy is our biggest issue, more than terrorism, and if we replace our one
million tubewell pumps with solar ones, we can save 7,000 megawatts,”Kathia
said at the demonstration of a solar well.

The majority of Pakistan’s tubewell pumps, which pump out underground water,
run on the strained national grid or on diesel power.

There is no pretence that solar power is the only answer, but this month the
prime minister ordered the government to provide solar electricity in remote
villages far from the national grid. The government described renewable energy
as the “investor’s choice” and said the private sector has offered to produce
1,500 megawatts a day.
Solar street lights are also being installed slowly in cities such as Rawalpindi,
Lahore and Karachi. Pakistan’s first on-grid solar power station, capable of
producing 178.9 kilowatts, began test operations in Islamabad this month with a
grant of $5.4 million from the Japan International Cooperation Agency.

“It is a seed for thousands more solar power plants,” Senator Rukhsana Zuberi, a
former chairperson of the Pakistan Engineering Council said. This winter
Pakistan suffered a two billion cubic feet a day shortage of natural gas — usually
the mainstay of millions delivered to homes and industry via pipelines — sparking
protests and forcing factories to lay off labourers.

Norwegian company Telenor says it has set up 50 solar-powered cell sites,

mostly in remote areas, capable of reducing 2.5 tonnes of carbon dioxide per site
by saving over 940 litres of diesel a month. Traders say demand has certainly
risen. A 170-litre (37-gallon) capacity solar geyser starts from 27,000 rupees
($300) and a 218-litre version for 32,000 rupees as a one-time cost.

Pakistani company to market Canadian Solar’s modules

Nizam Energy – a subsidiary of H Nizam Din and Sons, which has

run multiple businesses since 1869 – announced its decision to enter
into a strategic partnership with Canadian Solar at a press briefing on
Monday. Canadian Solar is one of the world’s largest solar module
manufacturers, with revenues touching $1.9 billion in 2011.

Nizam Energy will act as a distributor of Canadian Solar’s products in

Pakistan, besides providing training and undertaking capacity building
of certified installers and engineers in the country.

Qatar to invest in Pakistan power sector

Under the tripartite agreement, ten plants of 660MW each will be set
up at Gadani. Projects producing 3000MW will be completed within
the first 30 months and the remaining projects of 3,600MW will reach
completion in the next two and a half years.
Poland keen to invest in Pakistan in solar energy sector

. The Polish Ambassador expressed his willingness for cooperation

and said that his country is keen interest to invest in Pakistan in the
sectors of coal mining, processing of agricultural products and solar
energy products, which would be helpful for Pakistan to deal with
various challenges particularly the energy crisis in the country.

The Minister thanked the Ambassador for his visit and expressed
confidence that Pak- Poland bilateral relations would further grow
with every passing day.

$875m FDI expected in energy sector

Government said five international firms were agreed to invest in the sector and
the said amount will be utilized in various projects to be started in Sindh
province.According to them, after the completion of the projects, about 875 mega
watt electricity will be produced through air and solar energy units.

Giving the details of the projects, Air Marshal (retd) Shahid Hamid, chairman
Alternative Energy Development Board (AEDB) said that Sindh government has
already provided a land of 22,000 acres to the board for the installation of the
units.The projects will be started in the area of Gharu to Katie-Bandar and about
17,000 new job opportunities will be created for local population.

Those companies which will invest in the projects include a German company G-
Energy with investment of $400 million, Denmark company Westas with $100
million, American company Axces with $75 million and two Chinese companies
Sestak and Abex have invested $108 million and $91 million, respectively.

He said with the installation of alternative energy units in the area, the electricity
demand of production units like Karachi Steel Mill, KPT and Port Qasim will be
fulfilled and these units will get the required electricity.

FDI has been recognized the most powerful and strategic weapon for
transforming a traditional economy of a nation into a modern economy by
accelerating the pace of growth and development. It is an investment involving a
long-term relationship and reflecting a lasting interest. FDI and encouragement of
investors is the need of the hour for the elimination of poverty and
unemployment. Pakistan’s economy continued to face challenges like energy
shortages which have held back investment and growth in the country.

The International Energy Agency has said that solar energy can make
considerable contributions to solving some of the most urgent problems the world
now faces. The strength of solar is the incredible variety and flexibility of
applications, from small scale to big scale.

So, investment in solar power sector will increase energy security, enhance
sustainability, reduce pollution, lower the costs of mitigating climate change, and
keep fossil fuel prices low and attract foreign investors which will increase FDI in
Pakistan.