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Pakistan

Canada To Build Another 1,000 Megawatts Solar In Pakistan

written by saurabh

Pakistan got a much needed boost for its power sector when, recently, a Canadian government entity announced plans to set up large-scale solar power projects in the south Asian country.

The Canadian Commercial Corporation signed a memorandum of understanding with the government of Khyber Pakhtunkhwa province of Pakistan to set up 1,000 megawatts of solar power capacity. The capacity is expected to be installed over a period of three years but size and location within the province has not yet been disclosed.

Second such agreement with Canada

This is possibly the second such agreement signed by the Canadian government to set up solar power projects in Pakistan. Last year, Canada signed an agreement with the government of Balochistan province to set up 1,000 megawatts solar power capacity. As per the agreement, a Canadian company will set up 20 solar power projects of 50 MW capacity each. The projects are expected to be distributed across the province.

Pakistan: A suitable market for solar

Pakistan is the perfect location for setting up solar power projects. The company has vast swaths of land to host large-scale solar power projects. The power demand-supply situation in Pakistan has been poor for several years and the country has been marred with frequent and long power outages. The power sector is overwhelmingly dependent on furnace oil and hydro projects for power generation; the former is costly while the latter is highly dependent on rainfall.

Pakistan currently faces a shortfall of around 6,000 megawatts. It has been forced to import electricity from neighbouring Iran. The volume of import from Iran stands at 100 megawatts but Pakistan plans to increase it to 3,000 megawatts.

Attractive tariffs for developers

A number of foreign project developers are looking to invest in Pakistan due to the attractive feed-in tariffs offered by the government. The country is yet to shift to competitive auctions, like many developing countries have.

In late 2015, Pakistan’s National Electric Power Regulatory Authority (NEPRA) announced a 25% reduction in solar feed-in tariffs. Even at these reduced tariffs the developers of these projects are expected to get around 11.0/kWh. In neighbouring India, however, tariff discovered through competitive auction have fallen to 6.5¢/kWh, and more recently to 4.9¢/kWh.

February 25, 2017 0 comment

Pakistan Gets Renewable Energy Investment Offers Worth $500 Million

written by saurabh

Pakistan continues to receive investment offers for renewable energy projects as the current demand-supply situation in the country makes it attractive for developers to set up new projects.

Project developers recently offered to set up 300 MW of renewable energy capacity across Pakistan. According to media reports, these offers would result in a cumulative investment of $500 million.

Zhenfa Pakistan New Energy Company has approached the government to acquire power generation license for its planned 100 MW solar power project. The company plans to set up the project in the Punjab province at an estimated investment of $122 million.

Three other companies have also revealed plans to set up wind energy projects in the neighbouring Sindh province. Western Energy Private Limited plans to set up 50 MW project worth $116 million, Trans Atlantic Energy plans to set up 48 MW capacity at $110 million investment while Siachen Energy Limited has proposed a 100 MW project.

Large number of wind energy projects are being planned in the Sindh province as it has vast wind energy sources as well as ample land availability. Recent media reports stated than 21 wind energy projects are currently at various developmental stages. These projects are likely to be commissioned by 2018 adding over 1 GW capacity of Pakistan power grid.

Pakistan has seen significant rise in renewable energy investment over the last few years. The investment has been mainly driven by Chinese companies due to close government-to-government relations between the two Asian countries. However, European countries have also announced plans to set up large-scale projects in the country where competition is still very low compared to emerging and developed markets.

Image by vectoropenstock.com for Cleantechies

August 31, 2016 0 comment

Pakistan To Add 1 GW Wind Energy Capacity Over Next 2 Years

written by saurabh

Pakistan is expected to see a huge jump in wind energy installed capacity over the next two years as 21 projects are lined up for commissioning.

Government officials in Pakistan has told local media that almost two dozen wind energy projects are currently at various stages of development and 1,012 MW capacity is expected to be added to the grid by 2018.

All these projects are being developed in the eastern province of Sindh which shares international border with the Indian states of Rajasthan and Gujarat. These states have some of the largest installed wind energy capacities among all Indian states.

A number of foreign companies are planning these projects, including China Three Gorges Corporation, China Sunec Energy, and Tricon Boston Consulting Corporation. Nine projects with cumulative capacity of 479 MW have already achieved financial closure and are currently under construction. Six projects with 308 MW capacity are already operational.

The Sindh government has taken several measures to promote renewable energy sector. Last year, it approved allocation of 15,089 acres of land to set up 21 solar and wind energy projects, amounting to a total installed capacity of 1,880 MW. The government will also allocate an additional 6,622 acres land for 12 more renewable energy projects later.

Several European and Chinese companies have already invested in Pakistan’s renewable energy market. Foreign investors poured over $3 billion into the renewable energy sector in Pakistan over the last year.

Image by vectoropenstock.com for Cleantechies

August 30, 2016 0 comment

Kuwait’s Ener Tech To Set Up Solar Power Projects In Pakistan

written by saurabh

The Pakistan government is continuously making efforts to attract foreign investment in the renewable energy sector.

The Balochistan government has signed a Memorandum of Understanding with Kuwait-based Company Ener Tech to set up solar power plants ranging from 50 MW to 500 MW in Quetta, Baluchistan. The projects would be set up in phases.

There are vast prospects of making investment in energy, livestock and other sectors in Baluchistan and EnerTech is keen to make investments in these sectors, Ener Tech Chief Executive Abdullah Almatari said.

This announcement came just a week after Pakistan’s National Electric Power Regulatory Authority (NEPRA) published the new Feed-in-Tariff (FITs) for large-scale PV and wind installations.

The Pakistan’s government strategy to attract foreign investment in the renewable energy sector particularly solar has so far yielded positive results. According to the Alternative Energy Development Board (AEDB) foreign investors poured $3 billion over the last year into the renewable energy sector in Pakistan. Majority of this investment came from China.

The Alternative Energy Development Board (AEDB) recently reported that as many as 35 solar PV power projects are at various stages of development. These projects shall have cumulative installed capacity of 1,111 MW. Also, according to AEDB, 40 wind energy projects are in various stages of development and are likely to contribute around 2,050 MW capacity to the national grid by 2017-18.

June 29, 2016 0 comment

35 Solar Power Projects Of 1.1 GW Capacity Being Developed In Pakistan

written by saurabh

Pakistan is expected to see a sharp jump in operational solar power capacity over the next few years as several project developers have signed pacts to set up projects.

The Alternative Energy Development Board (AEDB) has reported that as many as 35 solar PV power projects are at various stages of development. These projects shall have cumulative installed capacity of 1,111 MW.

The largest of these projects will come up at the Quaid-e-Azam solar power park. The project currently has 100 MW operational capacity. Apollo Solar Pakistan, Crest Energy Pakistan and Best Green Energy Pakistan are working on 100 MW solar power capacity each. These projects are expected to be commissioned by the end of this year. The total capacity of Quaid-e-Azam solar power park will thus increase to 400 MW against planned capacity of 1,000 MW.

Six other developers have been issue letters of support for development of products with cumulative capacity of 47.84 MW. The ADEB has also issued letters of intent for development of 25 projects with combined generation capacity of 663 MW. These projects are expected to be operational by 2018.

Additionally, the government of Punjab province has also issued letters of intent for projects with 600 MW capacity, of which 300 MW capacity has already secured financing.

May 30, 2016 0 comment