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]

 

 

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.