[vc_row][vc_column][vc_column_text]Pakistan is a country endowed with numerous amounts of renewable energy sources. It is on the verge of a significant shift in its energy industry. The country holds immense potential for renewable energy sources such as wind, solar, and biomass, which can help relieve the energy crisis while promoting sustainable development in the C&I areas.

Despite the promising opportunities, Pakistan’s energy industry such as solar faces persistent challenges such as costly infrastructure, reliance on imported equipment, and heavy taxes.

The central issue in Pakistan’s energy predicament is its reliance on conventional fossil fuels, creating an unstable equilibrium between energy supply and demand. Regular power outages and inadequate grid connections impede the country’s development path. Despite these obstacles, there is a chance to incorporate advanced smart grid technologies and renewable energy sources (RESs) into the country’s overall energy mix.

Types of Solar Infrastructure

Windows with Solar Cells

A solar window is a solar cell that serves as transparent glass and produces solar energy. Besides being cost-saving, it is considered eco-friendly and does not take any extra space. It can be effectively used for both commercial buildings and households.

Sun-Tracking Solar Cells

Solar cells that follow the sun from east to west throughout the day were launched in December 2016. These solar cells are bowl-shaped and can be used in a Solar PV System. It employs solar trackers to track the sun to gather more of its energy. Hence, this will help produce maximum energy for the commercial and industrial sectors.

Solar cells made of silicon

Silicon solar cells have become one of the most direct sources of electricity from renewable energy sources. Researchers have also developed a bifacial silicon solar cell with efficiencies of 23.3% on the front and 23.4% on the back, thus increasing the solar cell efficiency record by 29.52 percent in December 2020. Hence, according to the International Energy Agency’s 2020 energy outlook research, these silicon cells based solar energy systems are producing the cheapest commercial electricity in history.

Photovoltaics integrated into buildings

Building-integrated photovoltaics (BIPVs) refers to incorporating photovoltaic qualities into the essential building components rather than rooftop solar panels. It means exteriors, roofs, glass windows, and all other types of shading producing the electricity that powers buildings. BIPVs effortlessly integrate into the architecture of the building, thus eliminating away the requirement for a separate mounted solar PV system installation.

Utilizing Pakistan’s renewable energy

Renewable energy initiatives provide a ray of hope for the C&I sector in Pakistan. This provides fresh opportunities for economic advancement, in contrast to the fossil fuel-centered industry, which frequently leads to environmental destruction and health risks. Renewable energy projects open up cleaner and more sustainable paths for development.

The advantages of incorporating RECs into Pakistan’s energy framework go beyond electricity generation. They can trigger a socio-economic revolution, endow businesses with energy, and unlock new opportunities for progression and growth. Pakistan can build resilience against external shocks and promote a more inclusive energy ecosystem by decentralizing energy generation and encouraging local ownership of renewable infrastructure.

In addition, implementing innovative grid technologies boosts the effectiveness and dependability of renewable energy systems. Smart grids permit monitoring energy usage in real-time, demand response, and incorporation of distributed energy resources, which optimize energy usage and minimize waste. By exploiting these sophisticated grid solutions, Pakistan can guarantee a smooth shift towards a more sustainable and robust energy future.

Achieve sustainable energy with BOOT Model

In the Solar industry, the rise of third-party ownership is the dominant model for solar installation. Adopting a PV system has become more popular with the access of feasible models such as BOOT. In the Power Purchase Agreement Model, the solar energy provider develops the solar system on the client’s property. As a result, the client gets to have a customized solar solution as per their requirements.

• BOOT Model
• Built
• Own
• Operate
• Transfer

The BOOT Model comes under a power purchase agreement where the solar expert builds, operates, and maintains on the client’s behalf. As per the Power Purchase Agreement contract, produced electricity is sold to the client through this BOOT Model.

The PPA is a long-term contract, and throughout its duration, the solar energy provider is responsible for maintaining the solar system installed at the client’s property

Companies using BOOT Model with Solar PPA

AkzoNobel Pakistan

Shams Power has supplied AkzoNobel with a customized solar system using the Build Own Operate and Transfer (BOOT) model facility under its Solar PPA Agreement. As per the agreement, AkzoNobel will produce 460 KW of DC power every year. Moreover, in terms of capital, operations, and maintenance, AkzoNobel will bear no cost.

Metro Cash and Carry Pakistan

Metro Cash and Carry Pakistan has decided to adopt sustainable solar techniques by collaborating with Shams Power. It will not only save money but also help the environment in the long run. Therefore, Metro Cash & Carry Pakistan has selected a solar-powered system for its headquarters in Thokar Niaz Beg and branches throughout Pakistan.

By using the BOOT model, this carbon-free initiative will help them save 239 tons of CO2 each year. In addition, they will get the electricity at a discounted rate and will not have to pay any O&M costs.

Packages Mall Pakistan

Packages Mall has also shifted its operations towards this low-cost renewable energy source by teaming up with Shams Power Limited. With the BOOT Model under PPA basis, they have opted to transform their business operations using more environment-friendly energy installations.

They have installed 2 MW Rooftop Solar at their premises and are benefiting from free operations and maintenance through complete energy optimization.

Work with Shams Power

Nonetheless, actualizing the complete potential of renewable energy in Pakistan demands a concentrated exertion from policymakers, investors, and stakeholders spanning various sectors. It mandates the creation of strong policies and regulatory frameworks that incentivize the utilization of renewable energy and simplify private sector involvement. Moreover, it is vital to invest in research and development to propel the development of renewable energy technologies and decrease expenses.

To conclude, Pakistan is at a crucial stage of its energy journey, where renewable energy is becoming a ray of hope in the middle of its energy predicament. Pakistan can not only surmount its energy issues but also discover novel avenues to sustainable development by embracing the immense potential of wind, solar, and biomass resources. Now is an opportune moment for courageous action and innovative investments in renewable energy, forging a brighter and more durable future for all Pakistanis.[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]Pakistani businesses or organizations that are considering switching to renewable energy should compare wind and solar options to see which works best for them. Evaluating the impact and effectiveness of these renewable sources is crucial in determining which best aligns with Pakistan’s ambitious environmental objectives. This evaluation goes beyond a simple comparison; it involves scrutinizing their potential to meet these goals effectively.

Let’s determine which renewable energy source, solar or wind, holds the most significant promise for a sustainable future.

Pakistan’s Policy to Use Renewable Source

According to National Electric Power Regulatory Authority’s (NEPRA) 2022-2023 yearly report, Pakistan’s total installed power generation capacity is 43,775 MW, of which 59% of energy comes from thermal (fossil fuels), 25% from hydro, 7% from renewable (wind, solar and biomass), and 9% from nuclear.

However, The Government of Pakistan (GoP) is seeking initiative to pursue clean energy more effectively. Because of this, Pakistan has aimed to reduce greenhouse gas emissions by 50% by 2030.

Hence, Renewable energy (solar and wind) is becoming an essential part of Pakistan’s climate change strategy for reducing greenhouse gas emissions.

A comparison between solar and wind energy in Pakistan

Pakistan has made significant progress in solar power installation. It is peak under direct sunlight, but changeable weather might hamper the efficiency of solar panels. Whereas, Wind turbines may produce electricity continuously as long as there is wind, even on cloudy days.

Wind Energy

Pakistan’s coastal area, stretching 60km from Gharo to Keti Bandar and extending 180km, holds the potential to generate 50,000MW of electricity. Currently, there are 36 private wind projects in operation, generating around 1845MW of power. Additionally, the Government of Pakistan aims to derive 60% of the country’s energy from renewable sources by 2030 as per its renewable energy (RE) policy. This ambitious goal opens up numerous opportunities for the wind energy market in Pakistan.

Solar Energy

Pakistan’s solar installed capacity reached 1.24 GW by 2022, marking a 17% increase from 2021, with the government proposing initiatives to boost solar energy share. The Solar Energy Market in Pakistan is projected to grow at a CAGR of 49.68% from 2023 to 2028, reaching 9.77 gigatons. Balochistan province boasts significant solar and wind potentials, with 2,900 GW and 340 GW respectively, and the capacity to implement over 14 GW of renewable energy within 5-10 years, including large-scale PV plants. Its favorable geography and irradiance position Balochistan as one of Pakistan’s most promising provinces for renewables.

Economic situation

The economic balance can also shift in unexpected ways. With their enhanced efficiency and reasonable cost, solar panels are now more affordable for industries, business owners, and commercial sectors.

It needs more significant upfront investment and benefits from bigger operational scales. However, solar provider companies like Shams Power offer Solar Power Purchase Agreements to combat these issues, allowing the C&I sector to install Solar Systems without paying any upfront or investment cost.

Ground Accommodation

Considering solar energy, the land footprint can be significantly cost-effective and hassle-free if it comes under PPA or Solar Financing. Although wind turbines are tall, they take up much less space on ground level. However, the effect on birds and species of bats remains a significant worry.

At last, the advantage of both methods is their enormous scope for innovation and scalability. Simple roof installations can increase Solar footprint without occupying more land, while offshore turbines seriously consider tapping into significant oceanic winds, avoiding surface conflicts.

The future of Renewable energy in Pakistan

In conclusion, projecting the path of solar energy against wind energy is a complex task. It is about comprehending a complicated patchwork of technological, policy, and societal requirements. Technological developments could soon change the odds in favor of one option.

Government policies will likely play an essential part in the battle over solar vs wind energy. It also emphasizes the importance of politics in the solar energy vs wind energy environment. Pakistan aims to lower emissions of carbon in the coming years. This will continue to drive investment in renewables at commercial and industrial levels. This policy will favor one energy source over another and could change the dynamic, resulting in faster development and research in the industry.

Adoption of renewable energy in C&I sector

Renewable energy is not simply a theoretical idea for commercial industries in Pakistan; it is a change that will affect their day-to-day existence. Industries are transforming into tiny power plants using the sun to power their rooftops and backyards. Similarly, community projects can take off with a joint investment in nearby wind turbines or solar farms.

Therefore, remember that diversity is the true winner when determining which form of energy is “better,” whether solar or wind. A robust and sustainable future may result from a well-balanced energy portfolio that capitalizes on both advantages. To save our world for future generations, inventors, policymakers, and, most importantly, knowledgeable industrialist must promote the development of a robust renewable energy matrix.

Contact us

Are you ready to help create a sustainable future? Contact us to discover how sustainable solar energy solutions might help you make a difference.[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]There are incentives as well as monetary benefits to do the right thing for the planet by opting for renewables such as solar energy. However, solar companies say the biggest issue they face is accessing financing to induct solar installations as part of their energy requirements.

“Banks are not willing to finance off-balance sheet solar financing,” said Omar Malik, CEO Shams Power. “They need some assets or hard collateral, which is difficult to arrange to back large solar plants.”

Shams Power is a joint venture of two energy companies (PITCO and Orient Operating Company), which offers solar power for the next 20 years on a Build Operate Own and Transfer (BOOT) basis. It has so far served 30MW of clean energy.

Former director of a solar company Netline, Umair Zavary termed financing the biggest hurdle at the moment for companies to install solar plants to fulfill their consumption.

“Companies want to install solar plants because these plants definitely provide cheaper energy. Moreover, it also helps exporting firms achieve their environmental goals, which are being made mandatory in many export destinations of Pakistan companies,” he said.

Unlocking climate funds: Pakistan faces several roadblocks

Dr Khalid Waleed, a PhD in Energy Economics with over 10 years of experience in Pakistan’s energy sector, concurred that accessing finance for the solarisation projects is an arduous job in the current macroeconomic scenario.

“There are now no schemes for solar financing from the State Bank except for a limited support for solarisation of tube-wells,” he told Business Recorder.

“Since the central bank isn’t interested in the current macroeconomic condition when interest rates are very high, commercial banks don’t have a reason to finance solar projects either. They want to invest safely and where they can get good returns. Returns are low in the renewable sector,” he added.

Waleed was of the view that foreign investors aren’t interested too in renewable projects because of different reasons.

“The Private Power & Infrastructure Board (PPIB) floated bids for a 300MW solar plant and nobody bid for it for multiple reasons.

“There is political instability and then macro-economic uncertainty too. Moreover, our grid is outdated, which trips on renewable energy sources – solar and wind because they are variable.

“So the National Transmission and Despatch Company (NTDC) prioritises fossil generated electricity such as coal. And then we already have excess capacity. So, it doesn’t make economic or business sense for the investors,” Waleed said.

What do international financial institutions think?

GuarantCo is an international financial institution that provides guarantees to banks to finance infrastructure development where the banks don’t feel comfortable to finance on their own.

‘Contrary to popular belief, Pakistan among our best-performing markets’

Philip Skinner, Managing Director, Global Execution Team at financial institution GuarantCo, explained to Business Recorder in an earlier interview that the model of GuarantCo is to “guarantee financing for infrastructure development where banks don’t feel comfortable. But we hope that gradually banks will develop trust in that certain space”.

Speaking about facilitating financing for Shams Power to provide rooftop solar plants for commercial and industrial use, he said they are hopeful that banks would gradually start developing trust in solar companies.

“And then we can move to something else, for instance, electric vehicles,” he said.

Raising finances for solarisation

Shams Power has recently raised Rs1.5 billion ($5.2 million) finance solution to invest in distributed solar plants at commercial and industrial locations across Pakistan.

GuarantCo, part of the Private Infrastructure Development Group (PIDG), and Bank Alfalah have provided Shams Power with this finance solution to support the construction of 10MW of small rooftop and ground mounted solar plants at commercial and industrial sites across Pakistan to reach grid connected businesses.

NASA official says ‘no Plan-B’ to Earth

Shams is a distributed solar developer with a total of 27 projects and an installed capacity of 25MW across Pakistan. Eighteen projects with a capacity of 21.2MW were completed and became operational under the first phase of the Rs2 billion ($11.3 million) facility provided by GuarantCo and Bank Alfalah in December 2021.

The finance solution of Rs1.5 billion debt provided by Bank Alfalah is 75% guaranteed by GuarantCo.

The company says the financing solution will support solar projects across Pakistan, which will reduce reliance on the grid, reduce energy costs for the commercial and industrial clients by up to 50%, and save an estimated 10.2k of CO2 emissions per year.

According to Shams Power, it is working on the ‘pay as you use’ model through which business users will benefit from a saving of 30% to 50% on their electricity costs through the solar systems.

It may be noted that government departments’ land and roof are considered goldmines to generate electricity.

Omar Malik said right now they use private spaces – mostly roofs and grounds of companies that are provided with solar energy projects.

However, he added, the government departments such as schools have a lot of space at crucial locations. There can be public private partnerships and the government departments can have electricity produced for their own use and they can also sell excess back to the DISCOs as well, according to Malik.

However, he was of the view that a strong and viable security package should be offered to investors putting up solar at government buildings on a BOOT basis (build own operate transfer) under such a Private Public Partnership, because government departments’ credit quality is poor.

Underperforming solar panels

Omar Malik said there are ample checks and balances of the Alternative Energy Development Board (AEDB) to ensure the quality of imported solar panels. Around ,3000MW of quality were imported last year.

Last year, AEDB was merged with the Private Power and Infrastructure Board (PPIB).

However, there are some cases where people complain that they face issues with the expected output of electricity that was promised by solar plant installation companies.

Govt must reduce its footprint from businesses, says caretaker energy minister at KLF

“There have been some cases of import of low quality solar panels. However, one of the biggest issues that the people with solar plants face is not quality but maintenance. We have dust issues in all cities. In Karachi, panels get dirty in 15 days; in Lahore and in Islamabad 25 days. Panels need to be cleaned in a month for optimum performance,” said Umair Zavary.

Other than that, the two industry officials highlighted that there is also an issue of underperformance of solar panels.

Performance of solar panels doesn’t only depend on the quality of the solar panels. There also has to be expertise of the companies and people installing them, they maintained.[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]Pakistan’s Commercial and Industrial Sector relies heavily on non-renewable power sources such as diesel and coal to fulfil their electricity needs. However, the non-renewable energy is costly and non-sustainable when it comes to handling daily operations. Furthermore, the low-reliability issues and heavy carbon emissions concerns make it a non-desirable choice, especially for those businesses who want to be competitive in the local and international markets.

Going solar is one of the wisest decisions any business can take in current times. Not only will they follow SDG 17 (sustainable goals), which gives a positive impression while dealing internationally, but they will also cut down on greenhouse gases.

Pakistan is blessed with an excellent solar energy potential ranging from 1500 to 2200 kWh/m2/ year and is ranked 6th in terms of having good solar potential. Hence, with this potential, it is highly beneficial for businesses to go for solar energy instead, especially if the Solar Plant installation and operation management is FREE OF COST.

In this blog, we will discuss how businesses and organizations can get a solar power system without paying any upfront investment. Apart from that, you will also learn how a zero-investment solar power setup operates under the BOOT Model.

Shams Power BOOT Model

We offer BOOT Model services to our clients under the Power Purchase Agreement. In this agreement, we install a free customized solar plant as per our client’s needs, and the client pays for the produced electricity under a decided tariff rate (as per the PPA contract).

Our Build-Own-Operate-Transfer (BOOT) model works as a catalyst to alleviate Pakistan’s ambitious clean energy projects. Our dedicated engineering, design, finance, and procurement teams tirelessly work together with our customers to deliver customized turnkey solutions. We ensure to make solar energy more approachable to our clients by making solar power a more feasible and pragmatic choice in renewable energy solutions.

Basic Features of BOOT Model

• No Capital or Financial Investment: Solar Plants are installed for free at the premises without any installation cost.
• No Maintenance Cost: Shams Power is responsible for designing, maintaining, procuring and installing solar plants.
• No Risk: There is no risk involved as Shams Power directly handles all the technicalities. A client only has to pay for electricity produced at a discounted rate.

Why Businesses should opt for the BOOT Model:

Apart from zero investment, it allows a strategic partnership with the client, helping them to lower their power cost, resulting in additional lower tariffs. Our dedicated team ensures to follow all precautionary measures as per ISO standards to maintain an optimum performance under the right conditions. Furthermore, we use advance solar technology to provide the most efficient solar solutions which are sustainable and eco-friendly.

Solar for Zero Investment: PPA Agreement

Under the PPA agreement, the clients get to enjoy discounted electricity as compared to local grid rates for a selected tenure. The agreement generally lasts for 25 years, under which clients enjoy all the lucrative benefits of solar systems.

Three types of solar solutions are covered under the PPA agreement. Rooftop, Carport and Ground mount solar solutions. A client can pick any of these, but it mostly depends on the space available, which can look pleasing to the eyes and produce maximum energy.

Shams Power: Leading Solar Energy Provider

In our journey spanning over half a decade, Shams Power takes pride in successfully operating 30+ MW of distributed solar projects for many renowned corporates of Pakistan, efficiently utilizing their rooftop, carport, and ground areas. As part of our growing client portfolio, we effectively serve large Retail, Wholesale, Food Processing, Educational, Automobile, Hospital, and Manufacturing industries all over Pakistan. Our valued clientele includes METRO Cash & Carry Pakistan, Coca-Cola, Mondelez, Hyundai Nishat Motors, Packages Mall, AkzoNobel, Shifa Hospital, Government Collage Lahore (GCU), Hilal Foods, and many more.

We provide you with an end to end solar solution. We specialize in rooftop solar power plants for on building rooftops, car parks, and open spaces within the premises on Build Own Operate Transfer (BOOT) basis and is an end-to-end solution provider – including Design, Engineering, Procurement, Construction, Monitoring, and Maintenance.

Are you considering Solar PPA to become energy independent? Click here and contact your expert.[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]ISLAMABAD: The United States Agency for International Development (USAID) on Monday signed a memorandum of understanding (MoU) with three Pakistani firms aimed at raising $53 million foreign direct investment within the next 9-12 months.

The MoU was signed during the “Investment and Climate Summit”, organised by the USAID under its Investment Promotion Activity (IPA). The three Pakistani firms with whom the MoU was signed included Shams Power, Walee Technologies, and Al Hadeed.

The MoU is set to raise $53 million FDI within the next 9-12 months.

The Summit also underscored the US government’s commitment to fostering foreign direct investment (FDI), elevating bilateral trade between Pakistan and the US, and addressing Pakistan’s climate change challenges.

While expressing gratitude to the US government, caretaker Federal Minister for Commerce Gohar Ejaz stated that the USAID has been a partner in assisting Pakistan in the development sector and this support is greatly appreciated. He said that the government of Pakistan is committed to establishing a conducive environment for investment, nurturing innovation, and streamlining trade processes.

He said that the Summit is a testament to the tangible outcomes of the robust partnership between Pakistan and the US, focusing on increased FDI and enhanced bilateral trade relations.

Currently, he added that the country’s trade deficit is $20 billion. He said that if 20,000 small investors and entrepreneurs make US$1 million exports annually, the trade deficit of the country could be eliminated in one year. He said that the country’s top 100 companies make exports of US$20 billion while the rest of the other exports $10 billion. He further stated that the government is focusing on the promotion of the 20,000 small investors.

“Pakistan has a small economy. We are trying to cover our deficit by increasing exports,” he said, adding that the country’s agriculture and non-traditional items contributed a lot to the national economy. He also invited foreign investors, especially from the US to invest in Pakistan.

Speaking on the occasion, USAID’s Mission Director Kate Somvongsiri stated that the Investment and Climate Summit reflects the United States’ unwavering commitment to supporting Pakistan’s economic endeavours.

“Through initiatives such as the Green Alliance Gaming Challenge Awards, USAID Grants, and development of the Pakistan Investment Guide, we aim to cultivate a resilient economy, attract FDI, and deepen our bilateral trade relations,” the USAID’s Mission Director said.

A key highlight of the summit was the USAID Green Alliance Gaming Challenge Awards, which celebrated the innovation of Pakistani game developers. Their creation raises awareness about critical climate issues and contributes to the country’s growing gaming industry.

The USAID’s Mission Director Somvongsiri handed over the “Pakistan Investment Guide” to Secretary Board of Investment Sohail Rajput. Through USAID’s assistance, the “guide to start investing in Pakistan” will serve as a strategic tool to attract investment, foster economic development, and strengthen the US-Pakistan bilateral trade relationship.

The event witnessed the presentation of grant completion certificates to Pakistani firms that successfully implemented USAID grants, showcasing the efficacy of these initiatives in facilitating economic partnerships and attracting FDI.

Source:-[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]GuarantCo and Bank Alfalah provide Shams Power with a PKR 1.5 billion (c. USD 5.2 million) finance solution to invest in small solar plants in Pakistan

GuarantCo, part of the Private Infrastructure Development Group (PIDG), and Bank Alfalah have provided Shams Power with a PKR 1.5 billion (c. USD 5.2 million) finance solution to support the construction of 10 MW of small rooftop and ground mounted solar plants at commercial and industrial sites across Pakistan to reach grid connected businesses.

Shams Power is an established distributed solar developer with a total of 27 projects and an installed capacity of 25 MW across Pakistan. Eighteen projects with a capacity of 21.2 MW were completed and became operational under the first phase of the PKR 2 billion (c. USD 11.3 million) facility provided by GuarantCo and Bank Alfalah in December 2021.

The finance solution of PKR 1.5 billion (USD c.5.2 million) of senior debt provided by Bank Alfalah is 75 percent guaranteed by GuarantCo. The proceeds will support the construction of an additional c. 10 MW of solar projects across Pakistan. The second phase seeks to largely replicate the success of the first transaction working closely with the same transaction partners including Bank Alfalah and Capital Resource.

Shams Power helps reduce carbon emissions and has a positive impact on mitigating climate change, through the provision of clean, sustainable solar power. Both transactions will make a further contribution to the transformation of the rooftop solar market in Pakistan by demonstrating the ability for rooftop solar providers to access debt funding and scale up. This will allow the unlocking of more solar potential and help build the capacity of energy and financial regulators in this area. It will also create a supportive and practical regulatory and financial framework whilst building the capacity of banks that are new to this asset class.

The financing solution will support solar projects across Pakistan, which will reduce reliance on the grid, save an estimated 10.2k of CO2 emissions per year, and contribute towards progressing the Sustainable Development Goals (SDGs) in the country. The transaction will make a direct contribution to SDG 7: Substantially increase the share of renewable energy in the global energy mix and SDG 13: Climate mitigation.

Business users will benefit from a saving of 30-50 percent on their electricity costs through the solar systems. The proposed solution increases businesses’ electricity reliability in case of black-outs and reduces their reliance on back-up diesel generators.

In addition, GuarantCo, through a PIDG Technical Assistance grant, is co-financing Shams’ Solar EmpowHer programme which provides the necessary knowledge and skills for female engineers in the solar industry to empower them and promote gender diversity in the solar sector.

Layth Al-Falaki, CEO of GuarantCo, said: “We are very pleased to have closed our second transaction with Shams Power in partnership with Bank Alfalah.  Our first transaction two years ago, has proven that the financing model is scalable, replicable and the need for guarantee support will hopefully reduce over time as private sector involvement increases and local currency financing for this asset class becomes more prevalent. This transaction supports Pakistan’s commitments to decarbonise its power sector and is aligned with PIDG’s 2023-2030 strategy. Through our partnership with Shams, we continue to support Pakistan in its ambition to improve energy access and provide economical, clean and consistent energy supply to businesses as they transition towards renewable energy.”

Omar Malik, CEO of Shams Power, said: “This additional PKR 1.5 billion milestone with Bank Alfalah and GuarantCo’s backing isn’t just about powering businesses, it’s about powering Pakistan’s clean energy goals and increasing competitiveness of the C&I sector of Pakistan. Building on our past success, we’re deploying another 10 MW, delivering reliable renewable energy and a brighter future to businesses nationwide. We’re not just talking cost savings and sustainability wins for our clients, but sparking job creation, strengthening energy security, and empowering women in the solar sector through our Solar EmpowHer program. We would also like to specially thank PFAN for championing this phase of our transaction, and to GuarantCo and Bank Alfalah for their continued support. Together, we’re not just scaling solar, we’re shaping a greener, more equitable Pakistan, one watt at a time.”

Atif Bajwa, CEO of Bank Alfalah, said: “Bank Alfalah is pleased to complete our second transaction with Shams Power in partnership with GuarantCo. This agreement will significantly expand the share of cost-effective, environment-friendly and renewable source of energy in the country, paving a way for a greener way forward.”

Asif Elahi, Managing Partner of Capital Resource, said: “It has been a real privilege working with Shams Power on this challenging assignment. I am pleased to have been part of this journey and advising the company, over the years, in successfully scaling up its operations and meeting its clean energy financing targets to become the market leader in the C&I solar space in Pakistan. I would also like to take this opportunity to acknowledge and thank the Private Finance Advisory Network (PFAN) for promoting and supporting Shams Power for this particular transaction and of course our long-standing development partners, GuarantCo for their continued commitment to private sector credit growth in Pakistan.”

Press contacts

GuarantCo Marjolein van KampenCommunications Director+44 (0)738 8857097Marjolein.van-kampen@guarantco.com

PIDG  Cecilie SorhusHead of Communications+44 (0)7917 302724cecilie.sorhus@PIDG.org

About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development www.guarantco.com

About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 171 infrastructure projects to financial close which provided an estimated 217 million people with access to new or improved infrastructure. PIDG is funded by the governments of  the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC www.pidg.org

About Shams Power

Shams Power is Pakistan’s largest Commercial & Industrial (C&I) solar power developer, investing and setting up solar projects at C&I locations, saving on grid electricity costs from day 1 from clean solar energy at discounted rates. This model removes any CAPEX responsibility, Operations & Maintenance expense, and Equipment Risk for our Customers. The equipment is transferred to our customer at the end of the agreement, giving them free electricity for the remaining life of the equipment. Our clients include likes of Coca Cola, Mondelez, Metro Cash & Carry, Packages Group, Nishat Group, AkzoNobel Pakistan, Dandot Cement, Shifa International Hospital, and Maxim International amongst others.

About Bank Alfalah

Bank Alfalah is a leading commercial bank in Pakistan, boasting over 1000 branches across 200 cities and an international presence in the UAE, Bangladesh, Bahrain, and Afghanistan. The bank offers various products and services, including corporate and investment banking, consumer banking, securities brokerage, commercial, small and medium enterprises, agricultural, Islamic, and asset financing to private-sector institutions and governments.

In 2018, Bank Alfalah launched its digital banking group, setting a high standard for the industry to follow with its Alfa app. This revolutionary new application brings together an unprecedented range of services and features all in one convenient platform. In 2022, the bank was awarded the best ‘Digital Bank’ and ‘Housing Finance’ across Pakistan, highlighting its commitment to simplifying and improving the financial capabilities of its customers.

About Capital Resource

Capital Resource is a boutique corporate finance advisory and consulting firm with in-depth experience of facilitating private sector infrastructure and focus towards promoting clean energy financing. In the past, the team at Capital Resource has successfully advised private sector corporates in structuring complex financing solutions including local currency credit enhanced financing transactions backed by GuarantCo.[/vc_column_text][vc_column_text][/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text][/vc_column_text][vc_column_text]Pakistan has primarily relied on non-renewable energy sources, particularly oil and gas, to satisfy its energy needs. Back in 2013, coal used to be the cheapest energy source, and Pakistan’s energy infrastructure was based around coal-powered power plants. Due to the depletion of domestic reserves and price hikes in the international market, coal has become an expensive energy source.

Pakistan imports more than a third of its gas and 50 percent of its gasoline oil. Based on a recent analysis by the Pakistan Bureau of Statistics (PBS), Pakistan imported petroleum products worth $17.033 billion in the first 10 months of the current fiscal year (2021–22). It brings about a drastic increase of 95.84 % compared to the previous year’s imports which was $8.697 billion.

If Pakistan fails to address this issue, its economy can collapse into a debt spiral, and the country will get financial assistance from International Monetary Fund. Hence, it is mandatory to maintain and develop independent renewable energy solutions such as Solar, Wind, or Water.

In this regard, the Government of Pakistan introduced The Indicative Generation Capacity Plan to fulfill the future energy needs of Pakistan.

Addressing at second Int’l Pakistan Energy Summit (PRES) 2022 in Islamabad, Power Minister Engineer Khurram Dastgir said: “hydel generation was the “mainstay” of the country’s energy and that despite its issues, it remained the most feasible source of energy in the long run. Interestingly the new magic bullet is solar, as we are told that solar rates are coming down. Therefore, the way forward is hydel plus solar and whatever wind generation we can develop.”

Pakistan’s Government sees Solar Power as a major solution to the energy crisis.

By keeping this in mind, the Government of Pakistan aims to achieve 20% of its electricity from renewable sources by 2025. Power Minister Engineer Khurram Dastgir stated that on August 1, 2023, an advanced solar energy scheme will be introduced to the public by Prime Minister Shehbaz Sharif. This scheme aims to highlight electrical issues and control the electricity prices that Pakistan is currently facing.

The Power Minister adds that the project will begin with installing seven solar panels where thermal energy plants already exist. The transmission wires are already there, so solar panels’ energy supply will be hassle-free. Moreover, there is also an ongoing discussion to install 1MW solar plants in underdeveloped areas of Pakistan. Doing this would assist in generating 2000MW of electricity just in the first stage.

Solar Systems will be installed at the Parliament House and the government buildings and offices to set an example of using solar energy. Likewise, non-renewable powered tube wells (e.g., diesel-powered tube wells in Balochistan) will also be converted to solar energy all over Pakistan to generate solar energy. The citizens will also be allowed to install solar panels ranging from one to three kilowatts in their houses. The cost of these modules will be recovered from saving on their electricity bills.

Before next summer, these schemes are expected to add 7000MW to 10000MW of electricity to the national grid system.[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text][/vc_column_text][vc_column_text]Climate change is undeniably a real issue resulting from global warming. The global population is growing at a 1.1% annual rate. The United Nations predicts that by the end of the century, there will be more than 11 billion people on Earth. To meet the fundamental demands of this rising population, global GDP must increase by roughly 3.5%. The researchers ‘RCP 8.5’ scenario predicts global warming up to 4 degrees Celsius if current conditions continue. Therefore, urgent action is required to solve the problem of sustaining the expanding population while reducing GHG emissions.

Why is it necessary to separate emissions from economic growth?

In the past, economists believed in the “Environmental Kuznets Curve,” which postulates that while economic growth initially causes environmental deterioration, the degradation rate reverses after a certain point. However, modern research has found that we run the risk of stepping outside the bounds of the planet even before the essential criterion of reversing environmental damage is reached. Considering these realities, academics and politicians are increasingly interested in separating economic growth and environmental challenges. At first resource efficiency was considered to be the decoupling approach. It has been noted that resource efficiency is connected to the “rebound phenomena,” where consumption rises directly to the efficiency attained. Hence, the experts have suggested structural modifications to take the “rebound phenomena” into account.

The average CO2 emission factor for a coal-fired power station is approximately 0.998 kg/KWh, compared to 0.015 kg/kWh for hydropower. Renewable energy sources like wind and solar have no operating emission factor. Consequently, there is a significant chance that increasing the amount of renewable energy in the energy mix will lower GHG emissions.

How to achieve growth and reduce emissions with Commercial Rooftop Solar System

Rooftop solar represents one of the most cost-effective ways to shift the energy balance. The price of electricity, net-metering regulations, corporate social responsibility, and customer knowledge are a few aspects that encourage industries to focus on maximizing rooftop solar’s potential.

One of the primary issues that industrial and commercial customers face is the upfront cost necessary for rooftop solar installation. However, the C&I sector can use Solar PPA contracts to solve this issue. In this approach, the energy service provider invests in the solar power plant and oversees asset operation and maintenance. Clients do not pay for capital investment and are expected to only pay a, mutually agreed-upon, fixed discounted tariff rate. The PPA model is anticipated to improve the rooftop solar system’s feasibility, consequently reducing the carbon footprint of electricity use, thus, separating economic growth from environmental degradation. Additionally, the lower cost of electricity will result in lower utility expenses, boosting profitability.

Challenges with rooftop solar and solutions

The use of rooftop solar energy is accompanied by several difficulties, including tidal and seasonal oscillations and the fate of solar panels at the end of their useful lives. The first can be reduced by continuing to rely on grid power. The second requires more research and development to find an environmentally responsible way to dispose of solar panels once their useful lives have passed.

Organizations can use the BOOT model under PPA contracts to rationalize rooftop solar rates and attain a sophisticated statistical and financial model program from the solar service provider. Those businesses who believe in PPA are working hard to find a reasonable tariff rate that would benefit both the service provider and the customers. The development of different green finance tools, including green bonds, can lower the cost of capital and, consequently, tariff rates. There is still much to be done for the rooftop solar business, which is still in its early stages. However, it is undeniable that widespread rooftop solar adoption will contribute to helping in increasing economic growth and reducing environmental deterioration.

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