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.

 

 

Solar energy is a natural renewable source of energy that is derived directly through the sun. The irradiance coming from the sun is converted into solar power, which is also an excellent profitable way to produce electricity. If we talk about Solar energy, it is transformed into three different processes: directly using photovoltaics; indirectly with the use of concentrated solar power through solar panels etc. or a combination of the two photovoltaics and concentrated solar power. With the sun being a direct, ample and readily available natural resource, there is a boom of solar energy companies in Pakistan providing energy-efficient solar power supply to industrial and commercial sectors.

 

Solar Energy in Pakistan

The sun is free and is an overly abundant resource available in Pakistan. According to the study shown by the World Bank (Report) on Solar Mapping, it states that more than 90% of Pakistan’s area receives 1,500 kWh/m² of irradiance and 75% of the land has an annual Global Horizontal Irradiance (GHI) of over 2,000 kWh/m².

 

However, solar energy and the process of converting direct sun heat into electricity do not come cheap and inexpensive. It is a one-time investment that requires high capital cost and operation management. Still, the return on investment is worth the price, not only in terms of renewable electricity production but also the reduced negative and harmful impact on the environment compared to burning non-renewable sources of energy like coal. Hence, it is where Solar PPA companies come into play.

 

Solar PPA Company Pakistan

Being a long-term contract arrangement, solar PPAs make solar energy in Pakistan even more accessible for business users, industries, and commercial sectors alike. With this type of agreement, customers get a reliable energy solution ranging from ten to twenty-five years. Moreover, solar electricity units are priced lower than the local utility rate for customers. Thus, in this type of agreement, repairs and maintenance, upkeep, and all other costs are borne by the solar energy provider. Therefore, the customer gets a discounted electricity rate with zero cost on maintenance and any operational hassle, resulting in a risk-free investment plan. Once the PPA contract term has reached its customer’s expiry, the solar power plant is then transferred to the customer free of cost.

 

What is a Solar PPA?

A Solar PPA or a Solar Purchase Power Agreement is a solar financing agreement between a customer and PPA solar companies or solar developers. According to this model, the customer does not incur the cost of a solar system setup. Under the PPA model, the customer will be entitled to all benefits, including design, materials, investment, and installation, all being taken care of by the developer. Moreover, the customer will benefit from using solar power generated electricity produced from solar panels. Solar electricity production would also be at a cheaper rate as compared to standard utility electricity bills.

 

What are the advantages of opting for Solar PPA?

Solar PPA is a revolution within the solar energy system globally and is now accessible within Pakistan too. With the main barrier to solar energy being capital-intensive, solar PPAs allow customers to enjoy solar energy without incurring operational and maintenance costs. As soon as the solar energy system is installed at the customers’ site, they can start reaping the benefits with a fixed discounted pricing of solar electricity.

 

1. Zero or Minimal Cost of Capital Cost

As mentioned before, the most significant advantage of Solar PPA is that you can enjoy all the benefits without worrying about any setup costs. The developer takes care of the entire process, making it hassle-free for the user. From planning, sizing, materials, area survey, procurement and installation, everything is taken care of by the solar PPA provider.

 

2. Decrease in Electricity or Utility Bill

Under the PPA model, the customer gets fixed electricity pricing for the entire contract duration. The contract’s final pricing is always lower than the price of the customer’s regular electricity bills. Utility electricity bills are also subject to inflation and unexpected price hikes, whereas, with solar renewable energy contracts, the pricing terms are fix in the agreement.

 

3. Low Risk Arrangement

Solar PPAs are a low-risk arrangement for the customers as the service provider controls the entire process end to end. With solar panel infrastructure on the premises, either in the form of a ground-mounted system, carport system or rooftop system, the customers always experience a seamless solar electricity delivery.

 

4. Increase in Property Valuation

Having a solar plant system installed on your property increases the property’s worth and value over time. Having your own power plant enables energy savings for a lifetime.

 

Shams Power for Solar PPA

If you are looking to have a Solar Purchase Power Agreement, Shams Power has the best tailor-made solutions for you. With the Purchase Power Agreement, Shams Power sets up the solar system on your commercial and business area for free, with zero investment and operation maintenance cost. Hence, with such an appealing offer and years of industrial experience, Shams Power has undoubtedly become one of Pakistan’s leading PPA solar companies. Shams Power is a joint venture between Pakistan’s leading energy companies PITCO and Orient Operating Company. Shams Power provides its customers with very reasonable and economically feasible solar priced power plant options to customers.

 

The Solar PPA at Shams Power offers agreements for up to 25 years with bespoke solutions, supporting clean and green energy without investing any capital, equipment or investment. With savings from day one, strong technical expertise, the backing of financially strong sponsors and no capital investment, Shams Power is the right option for anyone seeking solar solutions.