[vc_row][vc_column][vc_column_text]Businesses these days’ bear heavy utility expenses in their day-to-day operations. As the organization grows, more energy is consumed for lighting, production, HVAC, machines, and other purposes. According to research by Finance Division Pakistan, Pakistan’s industrial sector consumed 22,280 GWH in 2021. However, as the cost of electricity rises, the overall expenses of firms also increase. Thus, switching to a sustainable solar system, such as Commercial solar power plants, will help firms secure themselves from power outages and grid rate changes.

With the advancement of solar technology, many firms have shifted to ground-mount and rooftop solar power plants in the last ten years.

Shams Power Limited helps firms integrate solar renewable energy through their diverse set of solar solutions. 

Power Purchase Agreements (PPAs) 

A power purchase agreement (PPA), or electricity sale agreement, is a contract between two private parties, one which produces electricity (the seller) and one which is looking to purchase it (the buyer). 

Net metering 

It enables clients to sell the excess solar energy to the national grid. It allows them to pay a cheaper electricity bill or compensate for energy exported to the grid during off-peak hours.

Empowering the future with Solar energy

The energy produced from solar power proves to be eco-friendlier than non-renewable sources like coal and fossil fuels. Hence, power generated from a commercial rooftop solar system does not emit greenhouse gases and conserves the environment from harmful carbon emissions.

According to the National Renewable Energy Laboratory, 1000 kWh of solar energy can cut CO2 emissions by 1400 pounds, Sulphur dioxide (SO2) by 8 pounds, and nitrogen oxides (NO2) by 5 pounds.

In this regard, Pakistan has taken steps to reduce greenhouse gas emissions. For this, Pakistan also participated in The 26th Conference of the Parties (COP26) to discuss crucial topics such as climate degradation and its financial implications.

Moreover, as per Pakistan’s Nationally Determined Contributions (NDC), the country states that it will cut emissions in half by 2030. Furthermore, Malik Amin Aslam, the Minister for Climate Change, mentioned the prospect of receiving $100 billion in funding to help the country transition to a sustainable energy future. Pakistan joined a Global Methane Pledge to reduce methane emissions at the 26th Conference of the Parties (COP26).

As a result of the government’s support and encouragement, the country is currently opting renewable sources like solar over non-renewable alternatives.

Understanding the Shams Power commercial solar power plant installation process

The installation of solar technology is causing old paradigms to crumble. When non-renewable sources of energy become depleted in the future, organizations will find it extremely difficult to replace them with renewable energy sources. As a result, many businesses have found it necessary to make strategic business decisions. Under the PPA agreement, Pakistan’s C&I sector can capitalize on solar plants without incurring any investment charges and improve business growth efficiency.

Here is how Shams Power can help them in this regard:

Consultation

With a personalized proposal and on-site site study, you can get the most out of your solar system. Our Experts will guide you with technical consultation regarding Solar Plant’s load, space, and size.

Design       

Each system is tailored according to the client’s needs and the structure of the building. We will make each system as aesthetically pleasing as feasible while installing it on your premises.

Financing

At Shams Power, we offer a comprehensive range of solar energy services to commercial and industrial clients through our solar financing option. Our PPA-based solar power system

provides end-to-end services for all companies seeking installation, operations, & maintenance without incurring any financial investment.

Installation

While installing the solar system, our qualified staff adheres to a strict timetable with minimal disturbance. Our services also include cleaning and maintaining solar system during the PPA contract.

Businesses that can benefit from commercial rooftop solar

Are you from one of those industries?

Agriculture • Education • Government & Military • Healthcare • Small businesses • Manufacturing and distribution • Office buildings

Shams Power

We provide designing, financing, installation, monitoring, and ongoing maintenance as part of our services. If you want to fulfill your energy needs through a renewable source the solar power is the way forward. For more information, feel free to contact us here.[/vc_column_text][/vc_column][/vc_row]

Shams Power Limited, Pakistan’s leading solar energy developer and investor, has successfully closed a PKR 2 billion financing facility from Bank Alfalah with a partial credit guarantee covering 75 percent of the facility from GuarantCo, part of the Private Infrastructure Development Group (PIDG). This financing will support Shams Power for the construction of approximately 21 MW rooftop and ground-mounted solar plants at commercial, industrial, and institutional (e.g., university, hospital) sites across Pakistan to reach grid-connected users.

 

Bank Alfalah will provide Sham Power with the financing in the form of a 10-year term loan totalling PKR 2 billion that benefits from the Renewable Energy Refinancing Scheme set up by the State Bank of Pakistan. Shams Power and GuarantCo have also agreed on an additional partnership worth PKR 1.5 billion to support Shams Power’s further debt raising in 2022 to construct approximately another 21 MW of distributed solar plants.

 

The projects will improve the efficiency of Pakistan’s energy sector by generating clean energy near the point of consumption, which will reduce line losses and losses associated with the national grid and will stabilize the grid during peak hours. Shams Power helps reduce carbon emissions and positively impacts climate change mitigation by providing clean solar energy.

 

The deal could transform Pakistan’s rooftop solar market by demonstrating rooftop solar suppliers’ ability to access local debt financing. The transaction also builds the capacity of energy regulators and the SBP, allowing them to create a supportive and pragmatic regulatory and financial framework, and builds the capacity of new banks in this asset class. Shams Power also plans to continue training and hiring female engineers as the company grows.Shams Power aims to solarise Pakistan’s Commercial & Industrial sectors and offer a Build Operate Own and Transfer (BOOT) model to commercial, industrial and institutional customers.

 

Shams Power’s business model is to build and operate solar power systems at commercial, industrial, and institutional sites, serving the local private sector, including SMEs, through complete solutions under long-term (12-25 years) PPA or equipment sales deferred basis agreements. Being the pioneer in Power Purchase Agreement (PPA) based clean energy generation and BOOT model in Pakistan, Shams Power seeked growth opportunities to scale and successfully partnered with Bank Alfalah and GuarantCo as the expansion facilitators.

 

Business and institutional users will benefit from lower electricity costs through the rooftop systems installed without incurring any upfront capital expenditure. The proposed solution also increases users’ electricity reliability and reduces their reliance on backup diesel generators. Given climate considerations and business continuity reasons, Shams Power’s solution represents an efficient alternative to existing solutions. In addition, the transaction will lead to long-term job creation in the project value chain. It is expected that there will be over 60 local permanent jobs created by Shams Power.

 

Signing ceremony attended by: Saad ur Rahman Khan, Group Head, Corporate, Investment Banking, and International Business Group Bank Alfalah (left); Atif Bajwa, CEO Bank Alfalah (middle); Omar Malik, CEO Shams Power (right); Asif Elahi, Partner Capital Resource and Emily Bushby, Interim CEO GuarantCo (virtual)

 

Omar Malik, CEO of Shams Power, said: “We are delighted to have successfully completed this landmark transaction. This will enable Shams Power to expand our portfolio of high-quality projects across the C&I sector and extend our renewable energy footprint. These projects will enable our clients to reduce their carbon emissions, meet sustainability targets, and reduce costs of production. They will also generate employment during construction. GuarantCo’s credit guarantee and Bank Alfalah’s tremendous support were critical in making this possible.”

 

Emily Bushby, Interim CEO of GuarantCo, said: “The innovative financing mechanism for this transaction has the potential to drive significant growth in the rooftop solar market in Pakistan. The model is scalable, replicable and the need for guarantee support will hopefully reduce over time. This transaction supports Pakistan’s commitments to decarbonise its power sector and to meet GuarantCo’s mission of mobilising new sources of local currency financing. Through our transaction with Shams Power, we will support Pakistan in its ambition to provide economical, clean and consistent energy supply to businesses and gradually shift towards renewable energy supply and improve energy access, involving the private sector and local currency financing.”

 

Atif Bajwa, CEO of Bank Alfalah, said: “While Bank Alfalah is at the forefront of facilitating our clients’ energy needs, this is a first of its kind distributed solar model of such magnitude for the Bank. Successful execution of this model will not only set up a framework for future distributed solar projects to follow, but will also pave way for numerous businesses to achieve significant energy savings with minimal capital expenditure. In line with Bank Alfalah’s Green Banking policy, Bank Alfalah remains committed towards renewable energy financing and is proud to play its part in reducing carbon footprint across Pakistan and combating climate change. We would also like to applaud State Bank of Pakistan’s Financing Scheme for Renewable Energy which is encouraging investments and taking us a step closer to achieving the government’s clean energy vision.

 

Asif Elahi, Partner of Capital Resource, said “We are thrilled to have had the opportunity of supporting Shams Power in achieving their financing objectives. There has been exponential growth in roof top solar power in regional countries with us lagging behind. The credit enhancement and financing support from GuarantCo and Bank Alfalah teams will go a long way in helping bridge this gap allowing Shams Power to become the leading distributed solar company in Pakistan.”

 

Press Contacts

Shams Power Limited Irteza Ubaid Head of Business Development +92 341 7426777 irteza.ubaid@shams-power.com

Shams Power Limited Salman Khan Business Analyst +92 345 7037678 salman.khan@shams-power.com

Pakistan has recently seen a rising trend in the Solar PPA contract for its commercial and industrial sectors.  PPA, is an energy-efficient solar solution contract, has reduced the commercial and industrial sector’s burden in managing and maintaining solar systems.

With such solar financing options, corporates are free from enduring renewable energy maintenance costs. Moreover, they can take advantage of building an entirely customizable panel installation under the BOOT Model (Built, Own, Operate, and Transfer).

Hence, PPA with BOOT Model is coming out as a feasible option for solar energy-seeking enterprises where capital investment was a barrier. It allows companies to obtain solar grid solutions using the Solar PPA Model with no CAPEX or OPEX.

Large Commercial and Industrial (C&Is) sectors may now develop, acquire, and receive comprehensive assistance ranging from design, procurement, construction, installation, and operations & maintenance with the help of emerging solar energy companies in Pakistan.

Without any upfront operational cost, the firms get to pay a fixed, affordable price of electricity on discounted tariff rates for long- and short-term tenure.

The Rise Of Third-Party Ownership With PPA 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.

Advantages of Power Purchase Agreement using BOOT Model

Solar renewable energy in Pakistan is gaining great popularity in the Commercial & Industrial sectors due to its reliability and sustainability. Following are some benefits of the Solar Power Purchase Agreement, which are enabling corporates to adopt a greener option:

• Easy Transfer of ownership

Now prolong your energy saving with the option to own the system at the end of the agreement.

• No Maintenance and operations

During the tenure of the agreement, the solar energy provider holds the responsibility of maintaining and leading the operations with its – expert team.

The live online monitoring by the team controls and maintains plant’s efficiency. It reports all problems and sends the specialized teams for on-spot maintenance. The team is always in constant communication with the client and takes swift actions to prevent any issues.

• No Upfront Cost

With a Power Purchase Agreement, you pay zero financial investment and incur no operating and maintenance costs. Through this opportunity, you can utilize your energy mix at its optimum level.

• No-Risk

The solar PPA model removes any CAPEX responsibility, so it reduces cost with zero risk.

Solar Project Financing With Shams Power

Shams Power, Pakistan’s largest growing solar energy PPA provider, offers rooftop, carport, and solar structure systems without requiring any upfront costs from the client. Our solar PV system helps the clients offset the electricity bill by providing them the power at discounted tariff rates.

When it comes to Solar Financing, we continuously adopt the best proactive approach towards operating and maintaining the solar system. We always practice advanced technology in our projects and use data analytics tools and digital dashboards for control and monitoring.

Our robust support regime equips all essential SOPs and QHSE requirements. Furthermore, we ensure the execution of all safety precautions and handle all the procedures with excellence.

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.

Shams Power: Pakistan’s leading Solar PPA Provider using BOOT Model

We aim to take Pakistan one step closer towards a sustainable green energy future. With our advanced technology and market insight, we encourage solar installations on an industrial scale.

If you are also looking for a solar energy company in Pakistan, we can help you out. Call us at (+92) 301 4246111 or email us at sales@shams-power.com for any query or information.

Pakistan’s predominant landmass receives an overwhelming quantity of sun irradiation every year.

With an increasing focus of government regulations on sustainable practices and a 60 percent reduction in Photovoltaic cell prices over the past decade Solar Renewable energy in Pakistan experiences a surge in demand, reaching up to 19000 megawatts.

Fig. 1: Pakistan’s direct normal irradiation map

Figure 1 demonstrates that Pakistan has a potential in the category of solar renewable energy.

In addition, many small and medium-sized enterprises are now obtaining electricity through the solar energy distribution system. Companies are becoming more self-sufficient with the help of solar renewable energy, thanks to flexible PV plants such as rooftop solar. Moreover, with lucrative solar financing facilities, organizations are now switching towards solar power for energy needs.

Fig. 2: Shows the overall demand, supply of Solar Energy in Pakistan from 2017-2021

Pakistan’s global collaboration for solar initiatives

China Pakistan Economic Corridor (CPEC) has already planned to invest and promote the initiation of clean energy sources via its multiple renewable energy projects. One of them is covering a 1,000MW solar project.

Quaid-e-Azam solar park is a major project initiated by the government with foreign collaboration. With the help of China, Pakistan was able to build 100MW solar capacity at Bahawalpur City.

In addition, the Japan International Cooperation Agency (JICA) assisted the country in constructing a 365W solar facility, bringing in more attention towards the solar investments. As a result, the Alternative Energy Development Board (AEDB) has issued letters of intent to twenty-eight enterprises with a total capacity of 956.52 MW.

These initiatives have encouraged many solar energy companies in Pakistan to continuously bridge the energy and demand gaps in the commercial and industrial sectors (C&I). The solar structures like rooftops, carports, and ground-mount are also facilitating the installation options for all types of enterprises.

UNIDO extends supports to commercial organizations (Featuring Shams Power)

To combat the energy crises in Pakistan, the United Nations Industrial Development Organization (UNIDO) started clean initiatives for business entities.

They initiated a substantial energy program to boost the adoption of RE technology in Pakistan’s industrial sectors. They are also encouraging the trend of Solar Project Finance among businesses to go green.

With UNIDO’s assistance, Shams Power has also managed to secure 12 commercial and industrial sites’ power purchase agreements (PPA) Projects. That said, METRO Pakistan (Pvt) Limited, Packages Mall, and AkzoNobel in Lahore, among many, have managed to sign Solar PPA Agreement under this initiative with Shams Power.

 

Commending the industrial sector’s shift towards renewable energy resources, Omar Malik, Director Business Development of Shams Power Limited, said: “UNIDO and GEF’s Sustainable Energy Initiative has been instrumental in creating market-based adoption of RE technologies and measures in the industrial sectors of Pakistan. Our goal is to scale and replicate this concept throughout Pakistan’s commercial and industrial sites. We believe that we have developed the right expertise and experience with the support of UNIDO that will lead to substantial clean and green industrialization.”

Hence, with UNIDO’s support, knowledge, and experience, Pakistan is now moving one step closer towards a sustained, clean and environment-friendly industrialization.