solar energy potential & market in pakistan - eclareon.com fileinstallation, o&m) on solar...

12.09.2012 Seite 1

German Development Cooperation – Pakistan Renewable Energy & Energy Efficiency Project

Solar Energy Potential

& Market in Pakistan

Supported by:

Bernhard Meyhöfer

Principal Advisor – GIZ-REEE

12.09.2012 Seite 2


Energy Mix Projections

Solar Energy Potential

Status of Solar Projects

Development of Upfront Tariffs

Q&A

Agenda

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Energy Mix Projections Vision 2030-Planning Commission

50.8

79.39

120.18

177.35

255.37

361.31

0

50

100

150

200

250

300

350

400

2004 2010 2015 2020 2025 2030

Nuclear

Renewable

Hydro

Coal

Natural Gas Oil

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Oil

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E)

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Indigenous Energy Projection (Vision 2030, Planning Commission)

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Solar Energy Potential of Pakistan

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Solar Energy Potential of Pakistan

Pakistan receives one of the best solar-irradiation in the

world

Average solar irradiation 5-7 kWh/m2/day

It can produce over a million MW of Solar PV electricity

provided adequate space for installation (Source: NREL-USAID-

study)

Market is at developing stage in both Solar PV and Solar

Thermal (domestic & commercial hot water applications)

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Solar Energy Potential of Pakistan - contd.

Presently 5000-7000 MW capacity deficit

National natural gas reserves are rapidly depleting

Government subsidy for domestic/commercial

natural gas consumption is slowly being withdrawn

Plans by Government to reduce trade deficit from

fossil fuels (presently exceeding10 billion USD

annually) by reducing imports

Plans by Government to increase the share of RE

particularly Solar in the total energy mix of Pakistan

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12.09.20


Solar PV Off – Grid Applications

40,000 villages presently un-electrified

Grid extension technically and economically not feasible

for next 20 years to reach remote areas

8000 villages identified for Off-Grid Solar PV applications

Approx. 100 villages presently electrified by Solar Home

Systems (SHS)

Microfinance based solar home system programs are in

initial stages of development

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12.09.20


Solar PV Grid Connected Applications

Tax and custom duty exemption in place by Government for

Solar products

LOIs for 9 projects with cumulative capacity of 228 MW issued

by AEDB under RE Policy

Government of Punjab (DoE) has allocated approx. 5000 acres

of public land for solar PV installations

Government considering switching 280,000 electric tube wells

onto Solar PV with Government allocation of funds under

process

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12.09.20


Solar Thermal - Hot Water Applications

Approx. 10,000 Solar Water Heaters (SWHs) installed in

both rural and urban areas producing 2 million liters per

day

Approx. ten installations in various industries, producing

80,000 liters per day

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12.09.20

Development of Upfront Tariffs

Following wind power, Government has in principle agreed to

upfront feed-in tariff regimes for solar PV projects up to 50 MW

capacity –

Formal reference for solar PV upfront feed-in tariff is expected

to be submitted to NEPRA within third quarter of 2012 by

AEDB, with tariff expected to be announced within the year

2012.

At present seven solar PV investors are actively involved in

obtaining a feed-in tariff for their projects with two feasibility

studies submitted

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Barriers for Solar Energy

Technology

Week technology basis (design, specification,

installation, O&M) on solar technologies

Low level of experience in larger scale application

(industrial scale, on-grid)

Grid connection issues (grid code)

Policy & Institutional

Lack of feed-in tariff (under development 2012)

Lack of incentive schemes (promotion schemes,

credit lines, microfinance etc.)

Image of solar technology (expensive, unknown…)

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Recommendations for investors

Identification of suitable local companies for

joint ventures

ensure presence at Pakistan

Development of local capacities (technology,

management) on solar technology

Contribute (actively) to dialogue on solar

energy application – awareness creation

private sector organized

seminars/workshops etc. for govt. agencies

and suppliers/consultants, academia

12.09.2012 Seite 14


THANK YOU

solar energy potential & market in pakistan - eclareon.com fileinstallation, o&m) on solar...

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