In Pakistan’s commercial and industrial sectors, solar power purchase agreements (PPAs) have become increasingly prevalent. With a solar power potential of 2.9 million MW, Pakistan presents a promising opportunity to harness energy for electricity generation.
Thanks to PPAs, the responsibility of operating and maintaining solar systems has been reduced for businesses, providing them with an energy-efficient solar solution contract with the assistance of companies providing solar energy in Pakistan.
What is a Purchase Power Agreement (PPA)?
A Purchase Power Agreement (PPA) is a financial deal where a third-party developer owns, operates, and maintains a solar power system. The host customer agrees to have the system on their property and buys the discounted generated electricity for a set period. This setup gives the host customer access to reliable and often affordable electricity. It also removes common hurdles like large initial costs, performance risks, and complicated design and permit procedures associated with installing solar systems. Moreover, PPAs can start benefiting the host financially as soon as the system is up and running.
With the current rise in prices of non renewable energy sources, solar energy has become a viable option, making PPA’s increasingly appealing. Presently, PPAs offer a more financially advantageous option in the market.
Advantages of Power Purchase Agreement using BOOT Model
When considering solar energy adoption in Pakistan, businesses often focus on the advantages it offers and its role in promoting sustainability. Here are some benefits of Power Purchase Agreements (PPAs) that are encouraging companies to embrace a more environmentally friendly choice:
No upfront capital cost: PPAs enable businesses to utilize clean energy without upfront costs. A third-party provider handles the installation and upkeep of solar panels, while businesses pay for the electricity generated at a typically lower rate compared to conventional utilities. This arrangement benefits both parties, offering accessibility and affordability to sustainable energy solutions.
Predictable energy pricing:
By having a set rate for solar panel-generated electricity throughout the duration of the PPA, consumers can reliably predict their energy expenses over several years. This protects them from the variability of traditional utility prices and offers a dependable, sustainable solution for managing energy costs.
No system performance or operating risk:
PPA guarantees the efficient operation of the solar power system throughout the agreement period, relieving consumers of any extra responsibilities. This facilitates a seamless shift to renewable energy, with the service provider ensuring reliability and effectiveness without added burden on the consumer.
Visibly demonstrable environmental commitment:
PPA acts as a concrete representation of businesses’ environmental dedication. By choosing renewable energy from solar panels, consumers display their commitment to sustainability and minimizing carbon footprints. The visible presence of solar panels on their premises demonstrates a proactive stance against climate change and advocating for clean energy solutions. This not only aligns with corporate social responsibility objectives but also resonates with environmentally aware individuals who prioritize contributing positively to the environment.
Companies using Solar PPA under BOOT Model
AkzoNobel Pakistan
Under a Solar PPA Agreement with Shams Power, AkzoNobel has received a tailored solar system using the Build Own Operate and Transfer (BOOT) model facility. As per the agreement, AkzoNobel is committed to generating 460 KW of DC power annually. Additionally, AkzoNobel will not incur any expenses related to capital, operations, or maintenance.
Metro Cash and Carry Pakistan
Metro Cash and Carry Pakistan has opted to embrace sustainable solar solutions through a partnership with Shams Power. This initiative aims not only to reduce costs but also to contribute to environmental preservation over time. Consequently, Metro Cash & Carry Pakistan has chosen to implement solar-powered systems at its headquarters in Thokar Niaz Beg and across its branches nationwide.
Utilizing the BOOT model, this carbon-neutral endeavor will enable them to annually mitigate CO2 emissions. Moreover, they will benefit from discounted electricity rates and be exempt from any operational and maintenance costs.
Packages Mall Pakistan
Packages Mall has transitioned its operations to rely on cost-effective renewable energy sources through a collaboration with Shams Power Limited. Employing the BOOT Model under a PPA arrangement, they have chosen to revamp their business practices by incorporating environmentally-friendly energy systems.
At their facilities, they have implemented a 2 MW Rooftop Solar setup and are enjoying complimentary operations and maintenance services through comprehensive energy optimization.
Shams Power: Leading the way as a Solar PPA Provider in Pakistan through the usage of BOOT Model.
Our goal is to propel Pakistan towards a sustainable, green energy future. Leveraging cutting-edge technology and deep market expertise, we promote large-scale solar installations.
If you’re seeking a solar energy provider in Pakistan, we’re here to assist you. Reach out to us at (+92) 301 4246111 or via email at sales@shams-power.com for inquiries or further information.
0 Comments