What is a net metering bill?

The process of recording surplus energy produced by a solar installation and crediting it to the customer’s bill as a credit toward energy drawn from the grid is known as net metering. It’s been the law in many Pakistan locations for years and is a rather simple method of rewarding solar panel owners for their contributions.

Profitable incentives like high repurchase rates, fixed long-term generation licenses, and sizable allowances for installed capacity are provided by Pakistan’s present Distributed Generation and Net Metering Regulations. Due to favorable payback times brought about by these regulations, net-metered rooftop solar PV capacity has recently increased nationwide as a result of the sharp decline in solar photovoltaic (PV) prices on a worldwide scale.

Net metering credit value

Each kWh credit is equivalent to one kWh under real net metering, and they can be exchanged for grid energy whenever they want. Sometimes the credit is less than the retail value of a kWh, but other times it may be exactly the same.

Time of use rates

Under time of use (TOU) rate plans, which are provided by certain utilities, the price of energy varies according to the amount of time it is utilized. On weekdays, when most companies start using their appliances, the grid often experiences its peak demand in the morning. The price of energy rises during these periods. 

There are at least two distinct charges for on-peak and off-peak periods in TOU rate plans. Owners of solar panels with TOU rates receive credit for the electricity their panels generate and deliver to the grid. 

So, what are the benefits?

Financial Savings

Through net metering, companies acquire electricity generation capabilities that reduce their need for conventional power supply systems. Solar power permits businesses to cut their electricity expenses through use of excess energy that was sent back to the grid over an extended period. Businesses experience reduced costs with better financial conditions through the implementation of this system.

Return on Investment

The financial gain generated by installing renewable energy systems to take part in net metering schemes presents itself as an attractive opportunity. The combination of cheaper electricity and possible earnings from excess electricity helps companies recover their initial solar panel expenditure. A successful financial return of initial investment funds emerges throughout the entire operational duration of the system for business users.

Independence in Energy

The ability to achieve power independence requires you to select the appropriate solar power system size. One major advantage of producing your own electricity is that it enables you to lower dependency on unstable conventional energy costs and preserves your operations from electric outages and energy supplier disruptions. Solar power inPakistan leads to companies benefiting from increased energy autonomy which strengthens their electrical supply reliability.

Sustainability of the Environment

The environmental benefits of net metering are among its many noteworthy features. Net metering lessens dependency on fossil fuels, which cause air pollution and climate change, by encouraging the use of renewable solar energy.

Grid Efficiency and Stability

The integration of distributed energy generation into the current power system is made easier by net metering. In order to improve grid stability and lessen the burden on centralized power generation, net metering participants feed back the excess electricity they create.

Conclusion

In conclusion, net metering offers solar owners a thrilling chance to produce a few additional units and lower their electricity costs. It reduces the payback period of your solar system in addition to helping you save money on your monthly expenses. Businesses, regulators and policymakers must all understand that choosing the appropriate incentives necessitates striking a careful balance. The government can promote the use of renewable energy by keeping or increasing buyback rates, but this needs to be combined with initiatives to digitize and optimize the grid. Businesses return on investment can be greatly impacted by choosing the appropriate system size and comprehending their consumption profile.

Pakistan portrays outstanding energy transition against a backdrop of increasing climate change effects and rising energy prices in today’s world. Due to the necessity for a reliable energy source and the rising cost of electricity, businesses are increasingly using solar energy.

Many Pakistani businesses find electricity prices so high and unstable that they have become practically unreliable. Companies now consider “load shedding,” or frequent power outages to be a normal occurrence and a way to reduce the strain on the grid. Certain operations may face fatal risks to employees because of summer temperatures over 40°C when cooling systems are essential along with fans.

Action Taken Due to Increasing Electricity Prices

Solar energy use has seen an increase in demand because of the combination between rising costs and uncertain supplies. Solar panel installations on business roofs have become common practice because companies seek to decrease their dependence on the nation-wide electric grid. This developing tendency results from society needing stable renewable power with sustained availability at reasonable prices.

Affordable Solar Energy

Prices for solar panels have dropped by 90% in the last decade, making solar energy more affordable for businesses. Government programs such as the elimination of the sales tax on solar panels and the introduction of net metering have further encouraged the use of solar energy.

Initiatives taken by the Pakistani Government

The Pakistani government comprehends solar energy’s value as a necessary power source for the country’s upcoming years. Additionally, they initiated a campaign to promote renewable energy development as a primary step as the aim is to achieve 30% renewable energy usage as a power source for Pakistan by 2030.

Environmental Benefits of Solar Power

1. Decreased emissions of greenhouse gases

One of the main advantages of solar panels for the environment is the reduction of greenhouse gas emissions. Unlike fossil fuels, solar energy is clean, renewable, and carbon-free. Using solar electricity enables commercial enterprises to reduce their environmental impact and take an active role in the worldwide effort to combat climate change.

2. Reducing air pollution

Air pollution is lessened by solar energy in addition to greenhouse gas emissions. Fossil fuel combustion releases sulfur dioxide, nitrogen oxides, and particulate matter, all of which greatly contribute to air pollution. The implementation of solar power systems by businesses helps minimize environmental pollution which results in better health conditions for their residents.

3. Conserving water

The procedure of generating power through conventional methods including coal and nuclear plants requires water for cooling purposes. The operating process of solar panels demands either minimal or nonexistent usage of water. This is especially helpful in a place like Pakistan where water conservation is essential.

Financial Benefits of Solar Power

1. Creation of jobs

The solar industry of Pakistan holds the ability to produce numerous new job positions. Solar power has the ability to support economic growth in Pakistan by employing skilled workers from diverse fields including research and development, manufacturing, installation and maintenance services.

2. Savings on energy costs

The utilization of solar energy proves to be financially advantageous for the long-term generation of power. A business can decrease its electricity expenses when it implements reliable solar power production methods.

Other Benefits of Solar Power for Pakistan

1. Increased efficiency of solar panels

Solar panels function at their prime level in Pakistan because summer provides both longer daytime hours and extra strong solar energy. The power generation from sunlight reaches its highest point in this season, giving Pakistan an opportunity to capitalise the economic and environmental benefits of solar power.

2. Reducing excessive power consumption

Important times of electricity consumption in Pakistan’s summer months become more manageable due to solar power generation. Thus, solar panels decrease electrical grid strain and eliminate the necessity for new power station development and associated environmental effects from electricity production.

Conclusion

There are several financial and environmental advantages to solar panels, especially in Pakistan during the summer. By using the nation’s abundant sunshine and solar energy, Pakistan may reduce its reliance on fossil fuels, combat climate change, and give us a better, healthier environment.

Frequent power disruptions would have halted operations just a year ago. Currently, a collection of solar panels installed on the roof provides all the energy. At Shams Power, we believe that distributed solar energy will play an important role in the future by providing more affordable and easily available electricity. 

Fair and reasonably priced power access 

Solar energy is evolving from a commodity to a technology with two main advantages. First, the cost of solar technology keeps decreasing as it advances. The cost of solar energy has dropped by 33.4% each time production has doubled between 2010 and 2023.

Secondly, international politics and the global market control the price of fossil fuels. In contrast, using solar panels goes a long way in allowing businesses to produce their power, therefore increasing control. People are able to produce their electricity requirements, unlike fossil fuel systems, which require expensive and unpredictable transmission and imports.

This independence will increase, and energy generation may become more decentralized as batteries become more affordable. This year, Pakistan is among the most glaring examples of emerging economies spearheading this shift.

Growing demand for solar energy

Pakistan is now the third-largest importer of these panels after purchasing an astounding 13 gigawatts (GW) of Chinese solar panels in the first half of this year. The UK is only expected to build 1.5 to 2 GW of solar capacity this year, and the US had build 32GW in 2023. In contrast, 46 GW, or 30% of Pakistan’s total power capacity, was imported in just six months in 2023. Locally, the impact is more significant, and this could place Pakistan as the sixth-largest solar panel installer in 2024. 1

Pakistan’s solar revolution’s driving forces 

The reliable grids in Pakistan and the inexpensive and abundant supply of solar energy are the two primary drivers propelling the fast adoption of solar power. Businesses in Pakistan suffer from frequent power outages or load shedding, and electricity costs have increased by 155% since 2021.

Businesses in Islamabad pay between PKR 29.11 ($0.10) and PKR 48.00 ($0.17) per kWh for grid electricity, but solar panels cost about PKR 22-30 ($0.08-$0.11) per kWh.1  Local businesses are adopting solar power due to its affordability and dependability, and more decentralized energy systems are anticipated to develop as battery storage becomes more affordable. This helps businesses because almost three-quarters of Pakistani companies face power disruptions.

Implications for Pakistan’s emerging economy

Since coal, oil, and gas generation have decreased during the past two years, Pakistan’s power sector’s carbon dioxide emissions have also decreased. This method can spread to developing nations with strong solar potential. Solar energy is already reasonably priced in Pakistan compared to grid energy, and it will only get more affordable as technology develops. The firms with fewer limitations on their energy use are more likely to grow faster, invest more and recruit more employees. Additionally, businesses can expand thanks to solar’s ability to lessen the need for national infrastructure. 

Pakistan’s solar revolution demonstrates how solar energy can enable people to take charge of their energy goals and assist Pakistan to get past infrastructure constraints. It closes the performance gap between advanced and developing economies in the energy transition while ensuring equity.

Managing a business involves targeting clients or consumers through the nature and principles of the business. Customers are ultimately there for your products or services, but solar panels could convey your objectives and core values more quickly than any advertising could. Solar panel installation comes with other advantages for your company in addition to providing renewable electricity.

• Solar panels can be mounted on almost any commercial or industrial roof including offices, warehouses, sports facilities, restaurants, apartment buildings, service stations and so on. This allows the chance of phasing out your electric bill based on the size of your system or the number of rooftops that have solar panels. Depending on the region, there might be even more savings for the eligible businesses if they can feed the other company with excess power produced by solar energy through net metering.
• Customers can hardly get a better demonstration of what solar panels provide for them. Their exposure benefits businesses as solar is an environmentally friendly endeavour.

• Solar power also acts as a boost for society since every facility with solar power is reducing the load on the power supply network.
• This solar use has several levels of success, despite its apparent nature. When there is a power outage, solar energy will not only allow you to keep some lights on and desktop computers working, but it may also temporarily protect your assets if your company sells frozen or refrigerated goods. Additionally, having a source to keep at least some of your lights on can help you keep your business open, depending on the size and layout of your facility.
• It can be costly for businesses, especially large-scale installations may not be affordable to businesses or businesses may not wish to make such a capital investment upfront. Commercial solar installations can, however, be financed through PPA. Businesses can greatly lessen their financial burden by working with Shams to implement Power Purchase Agreement (PPA) based solar solutions, which require no upfront costs, guarantee savings, and provide hassle-free operations and maintenance.

• One of the most alluring advantages of solar electricity for companies is energy independence. Fluctuations in the grid might affect business as usual depending on how much power is consumed by your firm. Small-scale solar arrays can produce enough electricity for any small business to be “behind the meter,” producing just power for on-site consumption.
• It would have several financial implications if the small business were to make the move to solar power and decrease its dependence on the grid, all to do with the power usage of the business. Consequently, the demand on the grid is reduced, and the amount of electricity generated in a top-down manner from conventional sources such as coal and natural gas is also reduced.

Conclusion

Solar panel installation for businesses is the right decision to benefit the organisation and the environment. The rewards of this investment will likely become apparent in a few early years of cash flow and will proceed to generate more than a substantial amount of savings in the long run. Moreover, such companies and institutions can also set a trend for other companies on their premises when they install solar energy sources on their premises.

Shams Power: Your trusted partner for reliable and affordable solar energy solutions.

Solar energy is becoming a popular choice in today’s constantly shifting energy landscape since it holds tremendous potential for a business, both financially and for the future of the planet. Given that global concerns about climate change are so prevalent today, solar panels provide society with a long-term product that satisfies not only the need for sustainability but also a range of other concerns.

Financial Savings and Incentives

Mandatory expenditures across various sectors have continually risen with more businesses accessing banking and other financial services. One of the biggest benefits of using solar energy in the future for companies is cost savings. Implementing photovoltaic systems means that electricity costs will be slashed, which is useful for energy-intensive businesses. They may also choose to adopt net-metering benefits in which they could sell back excess power to the grid. It also assists in reducing energy costs while on the side increasing income, hence improving the worth of the business.

Better Brand Association and Corporate Governance

With the growing consciousness towards nature, mainstreaming solar energy can go a long way in building a more positive image of the company. Renewable energy buying makes a statement regarding corporate social responsibility (CSR) which enhances the image of the business and attracts customers who are particular as to the type of business they support.

This also helps in enhancing other stakeholders such as investors and locals as it shows that the company is futuristic and friendly to the environment.

Energy autonomy and security

In most cases, using conventional energy resources calls for high costs in terms of price changes and supply disruptions. Solar energy offers an opportunity to increase the degree of freedom in energy supply and demand, which allows companies to mitigate fluctuation in operating expenses. Self-generation results in freedom from market fluctuations, hence providing protection against the uncertainty of fossil fuel prices.

Additional progressions in the field of energy storage improve this independence since companies are able to store the excess energy for another use, maintaining the power supply during days of peak demand or in case of blackouts.

Future readiness

As governments around the globe place new sanctions on their countries to reduce the detrimental effects of climate change, organisations need to be flexible in order to remain relevant. Purchasing solar power positions companies to not only satisfy the current  requirements of the regulations but also to adapt to future changes.

Recruitment

Nowadays, people, particularly the young generation, expect employers to be environmentally friendly. Especially when companies commit themselves to solar energy and sustainable actions, they can attract the best workers who want to work for a company that is also concerned about the environment. Therefore, promoting a green environment at the workplace increases the morale and productivity of the employees as the emerging youth likes to work for companies that are environmentally conscious.

Conclusion

With the increasing focus on finding sources of sustainable energy, solar power presents a chance for organisations to minimise their impact on the environment. The cost benefits of embracing solar energy include savings on energy expenses, building a strong brand reputation, increased organisation independence on energy, meeting legal requirements, and attracting talented people into the organisation. Do not approach solar energy change as an act of compromise, but as the new, effective business decision that it is. Use the sun’s energy and join us in building a sustainable future for Pakistan.

[vc_row][vc_column][vc_column_text]In recent years, the cost of electricity has been steadily climbing, impacting businesses. This trend isn’t unique to one region or country; it’s a global concern that prompts us to rethink our energy consumption and seek sustainable alternatives.

In Pakistan, the National Electric Power Regulatory Authority (NEPRA) has approved yet another increase in electricity rates, slated to take effect from the fiscal year 2024-2025. This decision underscores the urgency for businesses to explore alternative energy sources, such as solar power.

Understanding the Electricity Price Hike

The decision by NEPRA to raise electricity prices reflects various factors, including rising fuel costs, maintenance expenses for power infrastructure, and the need for investments in the energy sector. For businesses, this translates into higher monthly bills, adding to the financial burden already faced by many.

Embracing Solar Solutions with Shams Power Pakistan

Amidst these challenges, solar power emerges as a viable and sustainable solution. Shams Power, a leading provider of solar energy solutions in Pakistan, offers a compelling alternative to traditional grid electricity. Here’s why adopting solar with Shams Power Pakistan makes sense:

1. Cost Efficiency and Long-term Savings

By investing in solar panels, consumers can produce their own electricity, greatly decreasing their dependence on the power grid. While the initial setup cost may seem daunting, it pays off in the long run through reduced monthly bills and potential savings over the lifespan of the solar system, which can be 20 years or more.

2. Environmental Benefits

Solar energy is a clean and renewable resource, in contrast to fossil fuels, which cause pollution and contribute to climate change. By switching to solar power, individuals and businesses contribute to reducing carbon footprints and promoting a cleaner environment for future generations.

3. Energy Independence

With solar panels installed, consumers gain a measure of energy independence. They become less susceptible to fluctuations in electricity prices and power outages, ensuring a more reliable energy supply for their homes or businesses.

4. Government Incentives

Governments often provide incentives and subsidies to encourage the adoption of renewable energy sources like solar power. These can include tax credits, rebates, and favourable financing options, making solar installations more affordable and attractive.

5. Supporting Economic Growth

Investing in solar power also supports local economies by fostering innovation in clean energy technologies. It contributes to a more resilient and diversified energy infrastructure for the country.

Taking the First Step

Transitioning to solar power with us begins with a consultation to assess energy needs and customise a solar solution that fits your requirements. If you are a business aiming for sustainable operations, Shams Power offers expertise in designing, installing, and maintaining solar systems tailored to your specific needs.

Conclusion

As electricity prices continue to rise, businesses must prioritise adopting sustainable energy solutions. Solar power stands out as a reliable, cost-effective, and environmentally friendly alternative to traditional grid electricity.

Embracing solar with Shams Power Pakistan not only benefits businesses but also contributes to a greener, more sustainable future for Pakistan and beyond. Join the solar revolution today and make a positive impact on your energy consumption and the planet.

For more information on how Shams Power Pakistan can help you harness solar energy, visit our website or contact our experts on  (+92) 0341 7426777 or sales@shams-power.com to start your solar journey.[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]Mondelez Pakistan has partnered with Shams Power to solarize its confectionary and powdered beverages plants and to take the installed capacity to around 2.2 MW of Solar on both sites. This initiative aims to enhance sustainability and reduce carbon emissions.

Shams Power will install the equipment, manage the operation and maintenance of the solar systems throughout the agreement, and transfer the equipment to Mondelez Pakistan upon the term’s completion.

This project is expected to contribute approximately 3.3 million units of clean energy annually to Mondelez’s electricity mix, offsetting around 1,500 tons of carbon emissions each year. This reduction in emissions is equivalent to the annual electricity consumption of approximately 1,000 households.

Sami Wahid, Managing Director, Mondelez Pakistan, stated: “ESG and environment initiatives are at the top of our priorities. We take pride in the fact that happiness is at the core of all our products, and we wish to extend that spirit into all our operations. We stand strong with a happier healthier planet and will ensure all steps necessary towards building a progressive community inside and around Mondelez.”

 

Omar Malik, CEO, Shams Power, spoke on the value addition of alternate energy to any business operations. He was especially elated to have partnered with Mondelez, and commented: “We at Shams Power are excited to extend our partnership with Mondelez Pakistan and are thankful to their leadership and management team for their vision, and commitment towards green energy, contributing in a positive way to mitigating climate change We look forward to expanding this relationship and exploring additional sustainability initiatives together.”

Mondelez, through this collaboration with Shams Power, is set to further reduce its carbon footprint, lower energy costs, and promote sustainability.

By using renewable energy sources, the company aims to support environmental conservation and align with global efforts to combat climate change. This initiative also reflects Mondelez’s commitment to corporate social responsibility and sustainable business practices.[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]High energy prices and levies are becoming strong drivers for commercial and industrial (C&I) solar projects in Pakistan. Omar Malik, the CEO of Pakistani C&I solar developer Shams Power, speaks with pv magazine about market trends and challenges.

C&I power consumers are increasingly deploying solar arrays in Pakistan due to high energy prices and tariffs.

“The average industrial consumers currently pay a tariff of $0.12/kWh,” Omar Malik, the CEO of Pakistani solar developer Shams Power, told pv magazine. “But this is only half the story, as they also have to pay another $0.10 in taxes on every kilowatt-hour they purchase from the grid. The government relies on five to six sectors for the bulk of its indirect tax collection, with electricity being one of the largest ones.”

High-self consumption rates mean lower electricity costs and lower taxes. Under the nation’s current regulations, the sale of excess power to the grid under net metering is only allowed for generators up to 1 MW in size.

The government also only exempts import duties on solar panels. “The exemption on solar inverters has been recently removed,” Malik said. “But this has not had consequences on the market development.”

Pakistan’s National Electric Power Regulatory Authority (NEPRA) issued 1,596 net-metering licenses across the country with a cumulative capacity of 221.05 MW in the 2022-23 fiscal year, according to official statistics from the Associated Press of Pakistan.

Malik said the market is also growing in terms of panel imports.

“In 2022, 2.8 GW of solar panels were imported into Pakistan. In 2023, about 5 GW, despite the import controls, and this year the prediction is for up to 12 GW,” he stated.

Financing concerns

One of the main hurdles to address in Pakistan’s C&I segment is access to financing.

“Banks and lenders in Pakistan keep considering solar assets as very fast depreciating assets,” Malik explained, noting that the volatility of the Pakistani rupee is still an issue compared to India, where access to financing is easier. “The Indian currency is stable enough for international investors.”

Despite these challenges, Shams Power was able to raise $20 million debt from local banks backed by a guarantee from an international credit enhancer, GuarantCo.

“In order to achieve this, we have to bring the bank in at the project finance stage,” Malik explained. “Or we can even do this after a year or two of operation, when we have some defined cash flows and we can show how these assets are performing and get the portfolio refinanced.”

Many Pakistani companies that export denim and textiles to the US and European markets face pressure from their buyers to support their supply chains with clean energy.

“In effect, there is some pressure to move toward renewables, but it is not coming from the government,” said Malik.

Storage segment

The C&I segment does not yet offer a big business case for battery storage.

“Batteries are still not economically viable when it comes to grid parity owing to high duties and taxes on import of batteries and storage technologies,” Irteza Ubaid, chief operating officer for Shams Power, told pv magazine. “With the current electricity price scheme in place, you can only generate profits when there is a power outage. Or when peak rates hit, you can start using batteries. However, the levelized cost of storage of C&I tier-1 batteries today, however, is still close to $0.35/kWh. We are still not able to give an economic benefit to clients to set up storage because they can buy grid power at less than $0.30, they’re really not interested – unless they have a continuous production process and cannot afford any interruptions.”

Shams Power is currently building 5 MWh of storage projects in Pakistan.

“We have been educating our clients and convincing them about not just looking at the per kWh cost, but also looking at additional benefits like the quality of power and environmental benefits,” Ubaid said.

Import duties are still being imposed on batteries, which means upfront costs remain higher than in other, more mature renewable energy markets.

Shams Power has a track record of deploying more than 40 MW of C&I solar for major clients such as Coca-Cola, Mondelez, AkzoNobel, Metro, Packages, Shifa Hospital, Hyundai, and Sanofi. It has a pipeline of more than 200 MW with large multinationals and local businesses across Pakistan.[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]Pakistan possesses abundant renewable energy resources, poised to catalyse a transformative shift in its energy sector. With vast potential in wind, solar, and biomass, the nation stands at the brink of substantial progress. These renewable sources not only offer a solution to the energy crisis but also pave the way for sustainable development, particularly in commercial and industrial sectors.

Solar energy is a clean and sustainable energy source that emits no greenhouse gases or air pollutants during the generation of power. Adopting solar energy can assist Pakistan in reducing its carbon footprint and combating air pollution, which is a major concern in many of its cities.

The cost of solar technology has steadily decreased internationally, making renewable energy sources more economically viable. Pakistan can capitalise on this trend by investing in solar systems and lowering overall electricity production costs to provide energy to the country.

Why is it ideal for Pakistan to invest in Solar Power

Pakistan’s geographic location is a plus point for solar technology. The country is located at latitudes 23°35′ to 37°05′ N and longitudes 60°50′ to 77°50′ E, an aerial belt that receives a large amount of daylight which can produce around 95% energy during daylight hours (8 to 8.5 hours per day). We also have 185 to 290 sunny days per year.

Receiving all this sunlight all year round, Pakistan has 2.9 million MW of solar power potential, making it a viable source of energy to tap for producing power.

Harnessing solar energy lessens Pakistan’s reliance on imported fossil fuels, which are expensive and volatile on the international market. This improves the country’s energy security by minimising disruptions in the energy supply.

Pakistan’s Solar Energy Market is estimated to increase at a compound annual growth rate (CAGR) of 49.68% from 1.30 gigatonnes in 2023 to 9.77 gigatonnes in 2028.

The Pakistani government has set a few goals such as obtaining 30% of the country’s power from renewable sources by 2030. To fulfil these goals, the government is aiming to build solar-generating facilities across the country through the Alternative Energy Development Board.

Some of Shams successful installations

Shifa International Hospital

Shifa International Hospital has implemented a significant renewable energy initiative by installing rooftop and parking solar panels. With a total capacity of 1 MW, this solar system is seamlessly integrated into the grid, operating as a grid-tied setup.

Tripack Films Ltd

Tripack Films Ltd has undertaken a significant step towards sustainable energy by installing both rooftop and ground-mounted solar panels. With a combined total capacity of 5 MW, this solar installation is seamlessly integrated into the grid, operating as a grid-tied system.

Packages Mall

With a robust total capacity of 3 MW, this solar endeavour seamlessly integrates into the grid, operating as a grid-tied system.

Nishant Hyundai

Nishat Hyundai is pioneering a sustainable energy revolution through its rooftop solar installation. With an impressive total capacity of 2.5 MW, this solar array seamlessly integrates with the grid, operating in a grid-tied configuration.

Initiatives and collaborations taken by Pakistan’s Government

The Pakistan government has given the green light to the National Solar Energy Initiative, aiming to generate 10,000 megawatts (MW) of electricity through solar projects. This initiative targets cutting down the import costs of diesel and furnace oil. It seeks to transition government buildings and tube wells to solar power, while also partially replacing power plants running on diesel, coal, and furnace oil. Notably, Pakistan’s President House has already shifted to green energy, promoting renewable energy adoption since 2021.

Furthermore, within the framework of the China Pakistan Economic Corridor (CPEC), considerable investments are earmarked to promote clean energy sources, including various renewable energy projects. Among these endeavours is a significant 1,000MW solar project.

The Quaid-e-Azam solar park represents a pivotal collaboration between the Pakistani government and foreign partners, notably China, resulting in the establishment of a 100MW solar capacity in Bahawalpur City.

Moreover, the Japan International Cooperation Agency (JICA) has played a crucial role in constructing a 365W solar facility, amplifying interest and investment in solar energy initiatives. Consequently, the Alternative Energy Development Board (AEDB) has extended letters of intent to twenty-eight enterprises, totaling a capacity of 956.52 MW, further bolstering Pakistan’s solar energy landscape.

Such initiatives have spurred numerous solar energy firms in Pakistan to actively

address the disparities between energy supply and demand  in the commercial and industrial sectors (C&I). Solar infrastructure such as rooftop installations, carports, and ground-mounted systems are further enabling diverse installation opportunities for enterprises of all kinds.

Shams Power: Leading Solar Energy Provider

In its journey spanning over half a decade, Shams Power takes pride in successfully operating 30+ MW of distributed solar projects for many renowned corporations of Pakistan, efficiently utilising 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 College Lahore (GCU), Hilal Foods, and many more.

We provide you with an end to end solar solution. We specialise in rooftop solar power plants for building rooftops, car parks, and open spaces within the premises on Build Own Operate Transfer (BOOT) basis and are 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]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]