Pakistan Meteorological Department has warned that the country is likely to witness high temperatures throughout June. Last month Pakistan witnessed record high temperatures where temperatures soared above 50 degrees Celsius in the south. International media termed the phenomenon a “Perfect Climate Storm”. Global average surface temperatures have risen by 0.08° C per decade since 1880 (2). According to the Meteorological Department, Pakistan’s main land surface air temperature in 2021 has risen by an alarming 0.99°C since the 1990s (3).

Figure 1. Pakistan’s annual mean temperature anomalies (with 1961-1990 as the base period) for the period 1961-2021 (Source: Pakistan Meteorological Department)

Accumulation of Greenhouse gases, specifically carbon dioxide, in the atmosphere is the main driver of “global warming.” A large amount of carbon dioxide is released from burning fossil fuels to generate electricity and contributes to the greenhouse effect. Pakistan is also heavily dependent on non-renewable energy sources for its power, as only 2% of electricity is generated from renewable sources. (4).

Figure 2. Pakistan’s energy mix – share in Electricity Generation (Source: Ministry of Energy)

To support a shift toward green energy State Bank of Pakistan (SBP) had launched its “Green Banking Initiative” to encourage renewable energy projects. The policy enabled sponsors of renewable energy access to grants of refinancing (5). Shams Power Limited was able to successfully close a 𝐏𝐊𝐑 𝟐 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 project finance facility from Bank Alfalah Limited with a partial credit guarantee from GuarantCo, under this SBP refinancing policy.

Figure 3. 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)

See blog: Shams Power Secures Financial Closure Of PKR 2 Billion With Bank Alfalah And Guarantco To Invest In 21MW Solar Power Plants In Pakistan

Climate change directly affects the competitiveness, profitability, and survival of corporates. Pakistan’s Commercial and Industrial sectors need to be vigilant and should champion a cause for sustainable development. One of the core pillars of Sustainable development is the adoption of renewable energy sources like solar, wind, and biogas. Collaborating with a private energy provider to access renewable energy is a popular method to ensure replacement for traditional energy sources.

Shams Power is one of Pakistan’s recognized solar energy providers, serving the commercial and industrial sectors by facilitating solar sustainability on a PPA basis. Renowned corporates like METRO Cash & Carry Pakistan, Coca Cola, Packages Mall, Maxim Agri Pvt Ltd, Nishat Hyundai, Emporium Mall, AkzoNobel Pakistan, and many more have chosen clean and green energy through power purchase agreement plan with zero upfront cost and guaranteed savings in return for discounted rates on energy tariff.

[vc_row][vc_column][vc_column_text]Over the last decade, PPA Solar System has emerged as one of Pakistan’s most promising renewable energy financing options available for the commercial and industrial sectors. When choosing Solar Energy in Pakistan, companies tend to look at the solar benefits and their contribution to a sustainable future. Solar PPA enables multiple benefits like discounted tariff rates, zero installation fees, and no O&M hassle. With the tightening economic conditions commercial & industrial sector’s tendency to opt for solar energy on a PPA basis has increased.

Let’s have a look at a few reasons why Solar System on PPA basis is suitable for your business in 2022.

Solar PPA Cut Downs the Utility Bills with Solar Energy

In Pakistan electricity tariff rates constantly fluctuate and the trend seldom dips. Unexpected hikes occur in the energy expenses which upsets the operational excellence of the organizations. However, with Solar Power Purchase Agreements, the company get electricity units at a discounted rate. It helps them accomplish their energy requirements with reduced electricity bills.

Through Solar PPA Get Solar Energy with Zero Capital & Operation Costs

Under Solar PPA contract, clients enjoy access to solar energy without paying any financial or operation costs. Through solar energy corporates can utilize a diverse energy mix to enable significant savings on electricity bills, increase energy independence and achieve sustainability goals. By supporting businesses that share the sustainable development goals, Shams Power aims to provide turnkey environment friendly solutions

Get free Maintenance

Solar Power plants do require regular maintenance and the whole process is very delicate so must be handled by experts. Under Solar PPA clients get free maintenance service for the complete solar plant throughout its PPA contract. Shams Power’s skilled professionals do all maintenance and cleaning throughout the duration of the contract while adhering to all HEC standards.

Reduce Carbon Footprint

The recent forest fire in the Koh-e-Suleman (Pakistan) mountain range brought attention to the urgent need to address the world’s rising climate crisis. A shift towards renewable energy sources such as solar, wind or biogas would greatly reduce harmful carbon emissions. In solar industry high upfront cost is the greatest barrier to solar adoption. With Solar PPA more corporates can have access to solar energy as the client only has to pay a discounted tariff on the energy units consumed and there are no upfront or operational costs.

Increases The Company’s Eco-Friendly Value.

With energy independence through Solar PPA, the commercial and industrial sectors can reduce their carbon footprints and fulfill their energy requirements at discounted tariff. Clients can choose a variety of solar installations like Commercial Rooftop Solar structure, ground mounted structure or car parking.

Shams Power recognizes the importance of environmental sustainability beyond its product line and is proud to be at the forefront of the industry in this regard. In 2021 Shams Power produced 6 million units of clean solar energy, which is 3510 tons of Carbon emission reduction 2021. Shams Power strives to develop solar systems that are as ecologically sustainable as possible. Thus, companies working with a PPA Solar system developer like Shams Power are better positioned to successfully accomplish their Sustainable Development Goals.

Conclusion

If you are a business determined to contain environmental degradation through adoption of renewable energy sources, then going solar is a prudent option. To begin the journey of change, answer a few simple questions about your factory/workspace/production unit and discover how it would look with solar plant from our design specialists.[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]Solar energy is the most adopted and feasible renewable energy option for Pakistan’s commercial and industrial sectors. Organizations have renewed their interest in solar energy due to its commercial and environmental benefits. Solar energy enables significant savings in electricity bills, access to clean energy, and an increase in energy independence. However, a few but widespread ‘myths’ have been a major hindrance to solar adoption.

The following are the handful of the most common solar power misconceptions and truths.

1. Myth: Installing Solar Power System is expensive for a Business

Fact: Investment in a Solar Power Plant is relatively expensive in the short run but only if fully financed by the user itself. New solar financing options such as Solar PPA, have made Industrial Solar Installations very feasible. Under Solar Power Purchase Agreements (PPA) the client does not bear the financial investment or operational costs and still can enjoy all the benefits of solar energy. Shams Power is the leading Solar PPA developer and undertakes all of the financing, installation, operations & maintenance of the solar power plant.

2. Myth: Solar power is more effective in hotter weather

Fact: This is another popular misconception when it comes to understanding the production of solar energy. In reality, PV cells in the solar panels absorb sunlight instead of heat to produce electricity. If there is ample sunlight It’s possible to generate solar energy even in extremely cold conditions of Artic or even in Sub-zero Space. Too high temperatures may hamper energy production.

Shams Power experts perform yield and shadow analysis that makes solar system positioning effective and efficient enough to produce optimum energy units.

3. Myth: Solar Energy System needs consistent high maintenance

Fact- Solar Power plants do require regular maintenance and the whole process is very delicate so must be handled by experts. However; the solar system’s maintenance is still less complex when compared to the maintenance needs of other energy sources.

Under Shams Power’s Solar PPA all of the maintenance and cleaning is handled by our professional experts who will clean and maintain the solar plants by adequately following all the HEC policies.

4. Myth: Solar systems can badly affect the roof of the installation site

Fact: Solar systems if designed and installed by a proficient team will have no adverse effect on the roof, on the contrary, the solar panels can provide coverage to the roof protecting it from various harmful elements.

5. Myth: Solar systems look unattractive on the premises.

Fact: Experts ensure to install Solar PV systems in places and angles that do not affect the physical outlook of any building. Solar installation types vary and can be installed on the rooftop, ground, and even on a parking lot as per the available area.

With the experience of overseeing 450MW, Shams Power boasts a highly experienced and skilled in-house team.  These seasoned professionals ensure that the solar system design is aesthetically appealing and business’s premises are not harmed during installation.

6. Myth: Solar has a long payback time

Fact: Continuous innovation in solar technology has made harnessing the sun’s energy very feasible. Solar costs have decreased by 90% in the last 10 years. Solar energy users save on-grid electricity costs from day 1 by getting clean and green solar energy at discounted rates.

Through Shams Power’s Solar PPA our clients enjoy 30% to 60% savings on their electricity bills. With zero CAPEX – OPEX cost they enjoy savings from day 1.[/vc_column_text][/vc_column][/vc_row]

There is only one earth, and it’s in danger. Our blue planet is losing its majestic ability to sustain life. According to the National Aeronautics and Space Administration (NASA), there are more than 100 billion planets in our galaxy. Up till now, humans have been unable to find another planet completely capable of sustaining life. So, there is #OnlyOneEarth!

Why worry?

Decades of negligence have resulted in a ‘triple planetary emergency’^[1]. Temperatures on the world level are rising at an alarming rate which has led to plethora of disasters, including droughts, heat waves, and floods. Continuous destruction of habitat has put an estimated 1 million species on the trajectory toward extinction. Disturbance in ecosystems have caused a rapid decline in the population making many species endangered. Pollution of Air, Land & Water have directly affected the wellbeing of all living things on earth.

What is World Environment Day?

In 1972 United Nations, at the Stockholm Conference on the Human Environment, introduced the environment revival initiative known as “World Environment Day. The campaign aims.” to spread awareness about the environmental challenges and encourage a call to action to conserve and protect our ecosystems.

Pakistan has hosted the 2021 edition of “WORLD ENVIRONMENT DAY” under the slogan of “Ecosystem Restoration”. This year’s campaign will be hosted by Sweden under the theme of # OnlyOneEarth. This year also marks 50 years of celebrating WORLD ENVIRONMENT DAY since its inception in 1972.

Our Responsibility  

Corporates and Industries (C&I) are the commercial backbone of Pakistan’s economy. The scale of their operations is massive enough to have a direct effect on society and the environment. In 2021, Industries contributed around 23% to the GDP, and currently, employees are 15.3% of the labor force ^[2]; however, Pakistan also produced 217 million metric tons of carbon dioxide (MtCO2) emissions in 2021^[3] .

In order to promote collective action, all facets of the society must band together and work towards the revival of the lost ecosystems. C&Is can champion this cause by focusing on sustainable development, including increasing the adoption of renewable energy, reducing and recycling industrial waste, and introducing strict controls on commercial air, water & land pollution.

By focusing on sustainable development, Corporates and Industries (C&I) can revitalize environmental initiatives to save our planet as there is #OnlyOneEarth!

[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

International Energy Agency reports suggest that the consistent growth in the global demand for Social Energy solutions will create an expected rise in solar production to 3300 TWh by 2030.

This possibility of an efficient energy supply spike in developing countries indicates a strong socio-economic development relationship with its production capacity. However, many developing countries like Pakistan, where large energy production mainly relies on non-renewable sources, still face prolonged power shortages due to Energy Transmission and Distribution constraints.

The unreliability of the grids and transmission lines has called for a rise of new significant measures to produce energy with a sustainable solution. Hence, the demand for renewable energy solutions like solar PV systems has been progressively rising in the commercial and industrial sectors of the country.

With the introduction of rooftop and ground-mount solar applications, the implementation of the Solar System in Pakistan is helping large corporates to capitalize on solar energy for a better future.

Promising Scope of Solar in Pakistan

Solar Power is the most affordable and environmentally sustainable way to overcome Pakistan’s energy deficit if its demand in industrial and commercial sectors is increased. With this approach, Pakistan’s government has also set a target of producing about 10 GWh of renewable energy by 2030. Furthermore, to maintain and expand the country’s solar power resources, the Alternative Energy Development Board (AEDB) also abolished solar energy tax duties in 2006.

Hence, these uplifting policy regulations have encouraged large corporations and industrial sectors in Pakistan to collaborate with private energy providers to adopt renewable energy as a potential replacement for traditional energy sources.

Shams Power is one of Pakistan’s recognized solar energy providers, serving the commercial and industrial sectors by facilitating solar sustainability on a PPA basis. Renowned corporates like METRO Cash & Carry Pakistan, Packages Mall, Maxim Agri Pvt Ltd, Nishat Hyundai, Emporium Mall, AkzoNobel Pakistan, and many more have chosen clean and green energy through power purchase agreement plan with zero upfront cost and guaranteed savings in return for discounted rates on energy tariff.

What does a commercial and industrial solar installation look like?

Solar Energy brings a tremendous amount of convenience to corporate sectors and solar financing investors. Since Pakistan is known to have an enormous capacity for solar power, every merchandising firm, factory owner, and educational institute can get the benefits of solar energy in one way or another.

With the help of Solar PPA, many solar installations like rooftop and ground-mounted solar have become feasible for different industrial and commercial sectors, and many corporations are pursuing more solar projects on a PPA basis. Apart from reducing the carbon footprints, it attracts environmentally conscious clients looking for sustainable practices while doing a business.

Hence, contrary to traditional grid energy, with the PPA Rooftop solar power plant, companies avail a guaranteed saving from Day 1.

Enhancing efficiency with Rooftop Solar

The designs of factory roofs should be flat and broad with enormous unused space, making it more convenient for the company to use the available area to install solar power plants for proper production.

The rooftop solar spaciously utilizes the free space with flexible architectural designs to maximize solar energy output from better angles by doing the yield and shadow analysis.

In Pakistan, many businesses, including Multi-National companies, have large production plants with plenty of flat roof areas, making it ideal for generating renewable and low-cost solar energy to capitalize on existing unutilized resources.

Moreover, in the case of the Rooftop Solar Power Plant, the analysis of yield and shadow should be done, so the implementation of the solar system becomes simpler and quicker.

Accessibility to Commercial Entities

Commercial property owners can significantly reduce the expenses of electricity and operational activities by adopting more practical resources. As Shams Power is installing Commercial Rooftop Solar Power Plant on a Solar PPA basis, so it’s very profitable for large commercial businesses, especially when renting commercial facilities to other companies.

Hence, the Rooftop Solar solution reduces the net energy bills while shielding the retail spaces, large corporates, manufacturing units, and warehouses.

Convenience to Industrial Corporations

Industrialists are encouraged to fulfill their energy needs with renewable energy. Solar System in Pakistan facilitates the industrialists to utilize solar power plants at full potential and saves the incentives of tax exemptions and capital subsidies.

With the initiation of multiple flexible solar buying opportunities like Solar PPA, the cost of installing a solar system for industrialists has become zero. Therefore, now all industries can take the lucrative benefits of switching their energy supply to a clean, green, and sustainable solution.

The flexible availability of solar applications like rooftop solar has changed the power industry in many ways. Providing opportunities for flourishing production growth has altered the dynamics of the power industry.

End-to-End Solar Services for more significant benefits

The solar industry has been evolving continuously, and more companies are now shifting towards captive solar solutions. Shams Power is one of Pakistan’s leading solar providers, offering its comprehensive services in commercial and industrial sectors all over Pakistan for Rooftop, Ground-Mounted, and Car-Port solar installation under solar Purchase Power Agreements (PPA), thus diminishing any financial risk for businesses.

Shams Power leverages its flexible and premium services in the solar industry by offering unique solutions for every type of company. By offering a diverse range of solar power solutions, including Rooftop Ground-mounted, and carport solar structured Power Plants, our skilled team provides all-inclusive and reliable services to its clients, including the initial costs of design and finance procurement, installation, operations, and maintenance facilities. Our end-to-end solar assistance can be recognized by the significant commercial and industrial market entities adopting our solar PV systems.

With zero investments, hassle-free operation, and maintenance facility, the solar Purchase Power Agreement (PPA) operations are performed safely and securely. These Solar endeavors always aim to encourage environmental sustainability and decrease electricity costs by boosting the demand for Solar systems in Pakistan.