Is Pakistan Ready For Clean Energy Revolution?

Rising worries about climate change have recently made me join the Clean Energy Revolution by installing rooftop solar and leasing an electric car. What is the Clean Energy Revolution? It is the growing use of solar panels, battery storage and electric vehicles to reduce carbon emissions. Is Pakistan ready to join the Clean Energy Revolution?

Tesla Surpasses China's BYD in EV Sales. Courtesy Electrek

Tesla Electric Cars:

Silicon Valley is at the forefront of this clean energy revolution led by Tesla. Tesla is more than an electric car company; the company also supplies solar panels and batteries. Other automakers are also taking their cues from Tesla.  China's BYD Auto has only recently been surpassed by Tesla in production volumes. Auto giants General Motors and BMW are both building electric cars and planning to build "gigafactories" like Tesla's to manufacture battery packs for vehicles and homes. Pakistan is building up renewable power generation capacity. The country has also recently announced its National Electric Vehicle Policy that offers incentives to transition to clean energy.

Bloomberg estimates that Batteries and electric transmission account for about 40% of passenger cars’ costs. European demand is met by mainly Japanese and South Korean battery makers like Panasonic, LG Chem Ltd. and Samsung SDI Co. In the U.S., Tesla has built its own battery cells at its Gigafactory to manage costs and satisfy demand for the cars it produces. Chinese demand for battery packs is met by BYD.

Battery Backed Renewable Energy Costs:

High-capacity battery pack costs have dropped nearly 40% since 2015, according to Wood Mackenzie data as reported by Wall Street Journal. The prices of lithium and vanadium—two of several key raw materials that are used in such batteries—also have declined over the past year or so.

Battery storage costs have fallen nearly 90% in the past decade, according to NextEra Energy.  Cost reductions are expected to continue to only $8 to $14 per MW-hour by 2020, or about a penny per kW-hour. For perspective, the average kW-hour of electricity costs about 13 cents for retail users.

NextEra Energy forecasts that post-2023, wind plus energy storage costs will be $20 to $30 per MW-hour, and solar plus energy storage will be $30 to $40 per MW-hour. Natural gas is expected to match the solar-plus-storage costs.

Pakistan Electric Vehicle Policy:

Pakistan has a low level of motorization with just 9% of the households owning a car. Nearly half of all households own a motorcycle. Motorization rates in the country have tripled over the last decade and a half, resulting in nearly 40% of all emissions coming from vehicles. Concerns about climate change and environmental pollution have forced the government to to take a number of actions ranging from adoption of Euro6 emission standards for new vehicles with internal combustion engines (ICE) since 2015 and announcement of a national electric vehicle (EV) policy this year.

Private vehicle ownership in Pakistan has risen sharply over the last 4 years. More than 9% of households now own cars, up from 6% in 2015. Motorcycle ownership has jumped from 41% of households in 2015 to 53% now, according to data released by Federal Bureau of Statistics (FBS) recently. There are 32.2 million households in Pakistan, according to 2017 Census.

Vehicle Ownership in Pakistan. Source: PBS

Pakistan's National EV Policy is a forward looking step needed to deal with climate concerns from growing transport sector emissions with rapidly rising vehicle ownership. It offers tax incentives for buyers and sellers. It also focuses on development of nationwide charging infrastructure to ease adoption of electric vehicles.

Low Carbon Energy Growth:


In recent years,  Pakistan government has introduced a number of supportive policies, including feed-in tariffs and a net metering program to incentivize renewables. These have been fairly successful, and renewables capacity in the country surged substantially over 2018 when 1245 MW was added, of which 826MW was contributed by the solar sector, according to Fitch Solutions.

Non-Hydro Renewables in Pakistan. Source: Fitch Solutions

Pakistan’s Alternative Energy Development Board (AEDB) recently signed deals for projects that will see the country expand its wind power capacity by 560 MW.  Fitch Solutions forecasts Pakistan's solar capacity to grow by an annual average of 9.4% between 2019-2028, taking total capacity over 3.8GW by the end of our forecast period.

Sindh government has recently signed a deal for 400MW solar park at Manjhand, 20MW rooftop solar systems on public sector buildings in Karachi and Hyderabad, and 200,000 solar home systems for remote areas in 10 districts of the province. The project is estimated to cost USD105million, with the World Bank funding USD100 million.

The biggest and most important source of low-carbon energy in Pakistan is its hydroelectric power plants. Pakistan ranked third in the world by adding nearly 2,500 MW of hydropower in 2018, according to Hydropower Status Report 2019.  China added the most capacity with the installation of 8,540 megawatts, followed by Brazil (3,866 MW), Pakistan (2,487 MW), Turkey (1,085 MW), Angola (668 MW), Tajikistan (605 MW), Ecuador (556 MW), India (535 MW), Norway (419 MW) and Canada (401 MW).

New Installed Hydroelectric Power Capacity in 2018. Source: Hydrowo...

Hydropower now makes up about 28% of the total installed capacity of 33,836 MW as of February, 2019.   WAPDA reports contributing 25.63 billion units of hydroelectricity to the national grid during the year, “despite the fact that water flows in 2018 remained historically low.” This contribution “greatly helped the country in meeting electricity needs and lowering the electricity tariff for the consumers.”

Chinese BYD in Pakistan:

Multiple media reports suggest that China's BYD is about to enter Pakistan market following the announcement of Pakistan National EV Policy.   These reports indicate that Toyota, one of the largest automakers in Pakistan, has signed a deal with BYD to manufacture electric vehicles.

Other reports indicate that Pakistan's Rahmat Group is in talks with BYD to set up an electric vehicle plant at Nooriabad in Sindh province.

Minister for Science and Technology Fawad Chaudhry has claimed that in three years Pakistan will become the first country to manufacture electric buses, which will be driven by an electric motor and obtains energy from on-board batteries.

Summary: 

It appears that Pakistan is starting to get serious about joining the Clean Energy Revolution to deal with rising climate change concerns. The country has set targets for renewable energy growth and announced National Electric Vehicle Policy.  In recent years, Pakistan government has introduced a number of supportive policies, including feed-in tariffs and a net metering program to incentivize renewables. These have been fairly successful, and renewables capacity in the country surged substantially over 2018 when 1245 MW was added, of which 826MW was contributed by the solar sector, according to Fitch Solutions.  High-capacity battery pack costs have dropped nearly 40% since 2015, according to Wood Mackenzie data as reported by Wall Street Journal.  Cost reductions are expected to continue to only $8 to $14 per MW-hour by 2020, or about a penny per kW-hour. While production and use of renewable energy are growing, the electric vehicles in Pakistan have yet to find traction. Hopefully, the National EV policy will encourage production and adoption of electric vehicles in the country.

Related Links:

Haq's Musings

South Asia Investor Review

Pakistan Electric Vehicle Policy

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Recurring Cycles of Drought and Floods in Pakistan

Pakistan's Response to Climate Change

Massive Oil and Gas Discovery in Pakistan: Hype vs Reality

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Comment by Riaz Haq on January 10, 2021 at 10:33am

#Pakistan’s power restored after massive #blackout.
#Poweroutage highlights long-term challenges surrounding electricity transmission networks. Between 80 to 90% electricity supply lost in a few seconds. It's never happened before. https://www.ft.com/content/47c4ca69-918c-4cc2-bdcd-38849a6bec73 via @financialtimes


Pakistan’s power supply was gradually being restored on Sunday after a massive power cut plunged almost the entire country into darkness over the weekend.

Prime minister Imran Khan’s government said the blackouts, which started late on Saturday night, were caused by a “technical fault” stemming from a failure at a power plant in the country’s south. 

The breakdown highlights Pakistan’s chronic infrastructure challenges, especially the inability of successive governments to resolve long-term challenges surrounding its electricity transmission networks. 

Although power outages are common in Pakistan, a senior government official told the Financial Times the weekend disruption was unprecedented in Pakistan’s history. “Between 80 to 90 per cent electricity supply was suspended in a few seconds. This has never happened before”.

The government urged citizens to remain calm as airports, hospitals and other key locations across the country of more than 200m people experienced blackouts.

Hafeez Pasha, a former finance minister and respected economist, said the latest blackout “represents a complete breakdown of governance in the power sector”.

Pakistan’s local media have pointed to the widespread theft of electricity as illegal power connections proliferate. There have been allegations that some electricity company officials have colluded with consumers to set up connections linked straight to power transmission lines rather than going through a meter.

The country’s main electricity supply companies have repeatedly run at a loss, prompting Pakistan’s western lenders to urge immediate remedial measures.

A $6bn loan from the IMF agreed in 2019 to help Pakistan stave off a debt crisis has been stalled, partly because of the prime minister’s refusal to accept an increase in electricity prices that would be unpopular with voters.

Analysts say Mr Khan has become increasingly averse to adopting unpopular measures as Pakistan’s political opposition has stepped up its protests against his two-year-old government, accusing him of winning the 2018 elections with the backing of the powerful army.

Opposition parties have threatened en masse resignations from parliament and a march to Islamabad unless Mr Khan resigns by the end of January.

Mr Pasha said the problem with Pakistan’s electricity grid was the result of under-investment in transmission and distribution networks, which means that about a third of electricity generated is lost during transmission or due to discrepancies in the billing system.

“How can you ever run the electricity network in a sustainable way?” Mr Pasha said. “There are bound to be growing problems.”

Comment by Riaz Haq on February 25, 2021 at 12:12pm

Pakistan leapfrogging to a green energy future
18 September 2020
Author: Maha Qasim, Islamabad

https://www.eastasiaforum.org/2020/09/18/pakistan-leapfrogging-to-a....

In August 2020, the Pakistan government formally approved the Alternative and Renewable Energy Policy 2019. The new policy aims to boost the share of electricity generated from renewable sources from around 5 per cent at present to 20 per cent by 2025 and 30 per cent by 2030.


To encourage the shift to renewables and empower the domestic industrial sector, the policy offers generous tax benefits to investors, encourages lower tariffs by introducing competitive bidding, and incentivises local production of renewable energy equipment such as wind turbines and solar panels.

The recent introduction of net-metering legislation for solar installations allows consumers to sell power to the grid. This is expediting the adoption of rooftop solar by homeowners and presents an opportunity to electrify remote villages and commercial enterprises that have sufficient rooftop space and available land.

Around 1000 MW of wind power has also been developed over the last few years. Wind power receives the highest level of private sector interest due to bite-size investment requirements and a relatively short gestation period. Utility-scale wind and solar plants could soon be augmented by battery storage to overcome the challenge of intermittent power supply.

The National Electric Vehicles Policy launched last year also promotes the large scale adoption of electric vehicles in an effort to combat urban air pollution and provides incentives to jumpstart the local electric vehicle manufacturing industry. The shift to electric vehicles could play a significant role in reducing Pakistan’s oil import bill and securing the transport sector against international price shocks, while also creating numerous green business and employment opportunities.

Pakistan currently imports almost a third of its energy resources in the form of oil, LNG and coal. An import-driven energy policy is not sustainable for Pakistan as it contributes to long-term energy insecurity, exposing the economy to energy price shocks and the risk of inflation. Inflationary pressures reduce the competitiveness of the country’s exports, further constraining Pakistan’s capacity to pay for energy imports.

The rapid adoption and upscaling of green energy solutions in the form of distributed generation, smart metering and electric vehicles — coupled with investments in utility-scale renewable energy power plants and increased energy conservation efforts — will significantly reduce energy imports and decrease the cost of electricity. This amounts to greater self-sufficiency and energy security for Pakistan.

Thanks to infrastructure and energy projects built under the China–Pakistan Economic Corridor (CPEC), Pakistan has managed to plug the energy shortfall that has plagued the country for several years. The government has various power projects in the pipeline and forecasts surplus generation capacity in the next decade — a surplus that could benefit the growing electric vehicles sector.

Comment by Riaz Haq on February 25, 2021 at 12:17pm

Overall, Pakistan attracted more than 50% of renewable energy investments (47% of which in hydropower), while Russia and Indonesia received predominantly fossil fuel related energy investments. (Green Belt and Road BRI Initiative)

https://green-bri.org/china-belt-and-road-initiative-bri-investment...


Among the BRI countries, investments were spread broadly across the continents. The countries that received most investments were Vietnam, Indonesia, Pakistan and Chile. Particularly Vietnam saw a strong increase of Chinese investments – an increase of over 200% compared to 2019, possibly driven by near-shoring to avoid American sanctions. Other BRI countries that saw increases of Chinese investments despite the COVID-19 pandemic include Poland, Bulgaria, Serbia, Zimbabwe, Zambia and Chile, as well as Thailand.


Analyzing Chinese energy investments in different countries, we find that Pakistan was the country, which received most energy investments from 2013 to 2020, followed by the Russian Federation and Indonesia. Pakistan is both the largest recipient of coal-related investments and also the largest recipient of investments in hydropower. Overall, Pakistan attracted more than 50% of renewable energy investments (47% of which in hydropower), while Russia and Indonesia received predominantly fossil fuel related energy investments.


----------

Rail: Rail investments included high-speed rail projects connecting China through Thailand and Malaysia to Singapore (Kunming-Singapore rail). A deal of the first 40km segment of the China-Thailand high-speed rail linking Bangkok to Thailand’s border with Laos was signed in December 2020. China is also building a US$6 bn high-speed rail connecting 142 km between Jakarta and Bandung in Indonesia. Furthermore, China has been engaged in building several railway projects on the African continent (e.g. Standard Gauge Railways in Kenya and Ethiopia). China also invested in rail in Europe, such as the Budapest-Belgrade railway. China also invested in several urban rail transport projects, such as US$900 million in a subway in Hanoi, Vietnam (which has been delayed) or the US$1.6 billion metro line in Lahore, Pakistan opened in October 2020.

Road-transport: China invested across all countries with investments including road construction in Pakistan (e.g. Karakoram Highway connecting China and Pakistan all the way to Pakistan’s Gwadar Port). In 2020 investments in road infrastructure decreased by close to 70% to about US$4 billion.

Ports: Pakistan is also one of the largest recipients of Chinese investments in port infrastructure, such as the Gwadar port operated by China Overseas Port Holding Company, which is a strategically important and also contested investment for China. Other strategic port investments can be found in Piraeus, Greece or in Lamu and Mobasa, Kenya, as well as in Djibouti. A recent US$3 billion agreement to commission Croatia’s largest port (Rijeka Port) to a consortium of three Chinese contractors has been cancelled at the beginning of 2021.

Comment by Riaz Haq on March 6, 2021 at 9:11pm

Worlds largest #Tesla #ElectricVehicle #Supercharger V3 Station Approved For Santa Monica, #California, with 62 V3 (250 kW) stalls. Currently, the largest Supercharger station in the world is in #Shanghai, #China, with 72 stalls of V2 (120 kW) https://insideevs.com/news/492495/massive-62-stall-tesla-supercharg...

Following long discussions and plenty of objections, Tesla will move forward with the two-facility 62-stall Supercharger site.
Just two days ago, we reported about potential plans for a massive Tesla Supercharger V3 station in Santa Monica, California. The Tesla site will be the largest of its kind in the world, with 62 V3 (250 kW) Supercharging stalls distributed between two facilities. After hours of discussion, the charging project was approved.

For reference, the world's largest V3 Supercharging station is in Firebaugh, California, with 56 stalls. Currently, the largest Supercharger station in the world is in Shanghai, China, with 72 stalls. However, the Shanghai station uses the former V2 (120 kW) Supercharging technology.


The Santa Monica Planning Commission finally approved the project with a 5-2 vote after hours of discussion, which was a result of objections and opposition to the future project. It will be located at 1401 Santa Monica Boulevard, with two sites separated by an alley. One site will house 36 stalls while the other will have 26. It will also feature solar power and battery storage.

Local residents mentioned concerns about the Supercharger station's fan noise, booming car sound systems waking people late at night, and the worry of homeless people trying to access the Supercharger station's restrooms, among other concerns. You can check out the Santa Monica Planning Commission’s vote by clicking on the video in the tweet above.

It's important to note that despite the lengthy question and answer session, as well as the long list of concerns, it comes as no surprise the commission approved the project with only two votes in opposition. While there are often concerns about such projects, there's something to be said about having the world's largest Tesla Supercharger station, and a progressive California city is arguably an ideal location for the charging facility.

Comment by Riaz Haq on March 23, 2021 at 4:31pm

LONGi Solar has taken its confirmed solar module orders from Pakistan this year to 500MW, the majority of which it said were for its Hi-MO 5 series.

https://www.pv-tech.org/longi-solar-takes-pakistan-module-orders-to...

LONGi said more than 80% of orders secured in the country, equivalent to around 422MWp, were for the Hi-MO 5 series of modules which come in power output variants of up to 540W.

Among the clients LONGi has secured in the country are Reon Energy, which is to develop Pakistan’s largest commercial solar project to date – and among the largest commercial rooftops outside of China – at 70MWp. The project is due to enter commercial operations in Q3 2021.

Dennis She, senior vice president at LONGi Solar, said the module manufacturer was committed to helping its customers in Pakistan contribute towards the country’s “path towards greater energy independence”.

“As Pakistan is prioritizing its energy generation methods and enhancing capacity to produce clean energy in order to meet growing demand without degrading the environment, energy project cooperation is playing a pivotal role,” he said.

Amidst a sizeable energy deficit where demand far outstrips power supply in Pakistan, the country is quickly turning to renewable power to bolster its power generation base. As of 30 June 2020, Pakistan had an operational solar generation capacity of 530MW, equivalent to around 1.36% of the country’s total power generation capacity of just over 38.7GW. Renewables in total contribute just 4% to total power output.

But Pakistan maintains an ambition to see that share rise to 30% by 2030, and sizeable additions to the country’s renewables portfolio are planned. LONGi cited estimates that between 565MW and 1,120MW of new solar capacity will be added this year, followed by between 623MW and 1,287MW in 2022.

Comment by Riaz Haq on March 28, 2021 at 11:26am

Apparently irked over not being invited by longtime ally US to an upcoming meeting on the climate change crisis, Pakistan on Saturday said its commitment to addressing the simmering issue is “well accepted and appreciated around the world.”

https://www.aa.com.tr/en/asia-pacific/pakistan-responds-to-us-clima...


US President Joe Biden has invited 40 world leaders to a two-day Leaders Summit on Climate “to galvanize efforts by the major economies to tackle the climate crisis,” the White House announced on Friday.

The virtual summit, which follows Washington’s return to the 2016 Paris agreement, is slated to be held on April 22 and April 23.

Responding to the US snub, Foreign Ministry spokesperson Zahid Hafeez Chaudhri issued a statement outlining Islamabad’s contributions to the global fight against climate change.

“Pakistan’s landmark initiatives like the Billion Tree Tsunami have won international acclaim, including from the World Economic Forum,” he said, referring to a nationwide tree plantation drive spearheaded by Prime Minister Imran Khan’s government.

“Pakistan is also meaningfully contributing to shape the global climate change discourse, inter alia, as the Vice President of the UN Framework Convention on Climate Change and member of the Intergovernmental Panel on Climate Change,” read the statement.

“Pakistan also co-chaired the multibillion-dollar Green Climate Fund, established to support climate actions in developing countries, last year.”

The summit, Chaudhri pointed out, would bring together “leaders from countries responsible for approximately 80 percent of global emissions and GDP.”

“Pakistan, despite being among the top ten countries affected by climate change, is one of the lowest emitters – with less than one percent of the global emissions,” he said.

“Climate change is one of the defining challenges of our times that can only be countered through inclusive, cooperative and forward-looking policies. Pakistan remains fully committed to play its due role in this fight.”

Comment by Riaz Haq on May 7, 2021 at 8:33pm

State Bank of #Pakistan has provided Rs36 billion in financing for 521 #renewableenergy projects producing approximately 850MW. It offers financing options ranging from Rs400 million to Rs6 billion for a range of entities and persons #solar #wind #hydro https://www.dawn.com/news/1622092


The State Bank of Pakistan (SBP) has been providing financing on a large scale to promote renewable energy that helped Unilever Pakistan run its 30 per cent plants on renewable energy, central bank governor Dr Reza Baqir said on Tuesday.

Addressing a joint webinar hosted by the SBP and Unilever Pakistan to create awareness about the former’s Financing Scheme for Renewable Energy (FSRE), Dr Baqir said that as of February 2021, financing of around Rs36 billion has been extended for 521 projects producing approximately 850MW.

Financing for sustainable development is the need of the hour and financial institutions have a crucial role in this area, he added.

FSRE aims to encourage investments for clean energy in Pakistan, the SBP governor said, adding that this is part of the country’s efforts to diversify the energy mix and reduce climate change impact.


The scheme offers varied financing options ranging from Rs400 million to Rs6 billion for a range of entities and persons, he said.

This includes captive energy units as well as commercial projects and individual consumers who may share excess production with the national grid.

The SBP issued its FSRE in 2016 and based on positive feedback the scheme was revised in July 2019. The SBP also introduced a Sharia-compliant version of this scheme in August 2019. The scheme aims at meeting Pakistan’s growing electricity demand through renewable energy and promoting clean energy projects as part of Sustainable Development Goals (SDGs).

It promotes the use of indigenous resources such as wind, solar and hydro power to generate electricity as well as encourages the use of renewable energy at consumer level.

Dr Baqir said that Pakistan faces challenge as a result of climate change and adopting prevention strategies are of paramount importance. In this regard the SBP has issued FSRE with a view to promoting renewable energy projects.

He highlighted the key features of the scheme that can be beneficial for the stakeholders ranging from the corporate to the individuals. The scheme has evolved over time and received strong response, said Dr Baqir urging participants to benefit from this facility.

He said that mobilisation of financial resources towards resource efficient and sustainable avenues would play a central role in mitigating climate change. Pakistan is member of Global Sustainable Banking Network (SBN) since 2015 and green and sustainable finance policies are being aligned with global environmental and social standards and best practice.

In his address, Chairman & CEO Unilever Pakistan Amir Paracha said FSRE offered tremendous social and business value to companies and producers both in terms of their environmental footprint and cost savings ambitions.

As part of this financing scheme, Unilever availed a loan of Rs833m through Standard Chartered Bank to set up 8.85MW of renewable energy production facilities across four factories in Punjab.

This effort is in line with Unilever’s global mission for carbon neutrality and sustainability in its manufacturing process. Unilever has committed to remove carbon emissions from operations by 2030, as well as net zero emissions from their products by 2039, which will be 11 years ahead of the 2050 Paris Agreement.

The webinar was attended by various chambers, media organisations, presidents and CEOs of banks, energy experts, representatives of Pakistan Business Council and senior officials from the SBP.

Comment by Riaz Haq on August 12, 2021 at 5:30pm

#US enhances #Pakistan’s #renewable #energy capacity. #USAID has increased #Pakistan’s #wind & #solar capacity by approximately 50% by leveraging over $900 million in private investment & facilitating the addition of 860 megawatts of wind & solar projects https://tribune.com.pk/story/2315262/us-project-enhances-pakistans-...


Pakistan on Thursday appreciated the United States for greatly enhancing capacity of renewable energy projects by approximately 50% through its Sustainable Energy for Pakistan (SEP) project.

The statement comes after Pakistani officials and representatives from the US government celebrated the conclusion of the four-year Sustainable Energy for Pakistan (SEP) project, an official statement said on Thursday.

Through the SEP project, the US Agency for International Development (USAID) partnered with the Pakistani government to provide more affordable, and climate-friendly power to Pakistan’s national energy grid while fostering economic growth for the country, it added.

Speaking on the occasion USAID Mission Director Julie Koenen said that the SEP has contributed towards making the energy sector more competitive, modern, efficient, clean, and financially viable for Pakistanis. “I am hopeful that the impact of this work will go beyond the energy sector and benefit the entire economy of Pakistan.”

Also read: Pakistan urged to expand solar, wind capacity

Additional Secretary for the Ministry of Energy’s Power Division Waseem Mukhtar praised the USAID for its partnership, innovation and support in making Pakistan’s energy sector more sustainable.

Through this project, the USAID increased Pakistan’s wind and solar capacity by approximately 50% by leveraging more than $900 million in private investment and facilitating the addition of 860 megawatts of wind and solar projects.

The SEP also introduced and standardised several new technologies in Pakistan’s power sector, including smart meters, which the Pakistani government has expanded with its own funds.

The US government’s partnership with Pakistan’s energy sector spans many decades and covers a wide range of projects to help Pakistan modernise its energy sector and combat the effects of climate change.

Comment by Riaz Haq on September 20, 2021 at 6:54pm

#Pakistan to build #solar plants on #canals. Solar plants on canals have already been successfully built in #India, where this technology has shown that solar power can be generated without occupying land and, at the same time, reduce #water evaporation https://www.pv-magazine.com/2021/09/20/pakistan-wants-to-build-sola...

The government of Pakistan is planning to build solar plants on top of canals spread across the region of Punjab, which hosts several canal irrigation systems.

The Punjab Power Development Board (PPDB) is currently seeking consultants to conduct a feasibility study for the deployment of solar plants on canals spread across the Gujranwala division, which is an administrative division in northern Punjab; and at the Rakh branch, which is a canal originating from Lower Chenab canal, in Gujranwala, and ending at Samundri, in Faisalabad district.

“Punjab has one of the widest-spread canal network[s] in the region; comprising of lined and unlined channels,” the authority said in the tender document. “Installations of solar PV panels on canal[s] … can avoid [the] use of expensive land for generating environment-friendly power. The generated electricity can be used by nearby localities or industry.”

The selected consultants will have to identify all lined and unlined canal parcels and distributary, minor canals that are suitable for canal-top solar power generation; and suitable power infrastructure located nearby, and select six sites. The deadline to submit proposals has been set for September 30.

According to a recent study from the University of California, Santa Cruz, in the United States, solar canals are already competitive with ground-mounted PV. Solar plants on canals have already been successfully built in India, where this technology has shown that solar power can also be generated without occupying land and, at the same time, reduce water evaporation.

Comment by Riaz Haq on November 25, 2021 at 8:15pm

Riaz Haq has left a new comment on your post "Is Pakistan Ready For Clean Energy Revolution? ":

Tax breaks kick Pakistan's electric car shift into higher gear

https://www.reuters.com/business/cop/tax-breaks-kick-pakistans-elec...

ISLAMABAD, Nov 22 (Thomson Reuters Foundation) - Pakistani businessman Nawabzada Kalam Ullah Khan had been planning to swap his family's petrol-powered cars for electric models for years.

But it wasn't until a set of massive tax cuts came into effect in July that the 29-year-old from Pakistan's capital Islamabad finally put in an order for two electric cars.

"Someone has to take the initiative to switch to these cost-efficient, environment-friendly vehicles in the face of increasing pollution in big cities - and we've done it," Khan said.

His new cars, he said now cost about five times less to run day to day than his old vehicles, a major incentive to make the switch.

Major Pakistan and Indian cities are struggling with dangerous levels of air pollution, with Pakistan's Lahore this week declared the most polluted city in the world.

Heavy use of fossil-fuel-powered vehicles for transport combined with smoke from seasonal crop burning make the problem particularly severe at this time of year.

But Pakistan's electric vehicle push is picking up speed, nearly two years after the country launched its ambitious green policy, which envisions a shift to 30% electric cars and trucks nationwide by 2030, and 90% by 2040.

Key to the shift are hefty tax exemptions for both electric vehicles imports and imports of parts and equipment to build the cars in Pakistan.



That has helped make the vehicles more affordable, industry figures said, as Prime Minister Imran Khan's government pushes ahead with its plan to cut carbon emissions and urban pollution.

The general sales tax on locally manufactured electric cars - those with batteries holding less than 50-kilowatt hours (kWh) of power - has dropped from 17% to nearly zero, said Asim Ayaz, general manager of the government's Engineering Development Board (EDB).

At the same time, the customs duty on imported electric car parts - such as batteries, controllers and inverters - is down to 1%.

The duty on importing fully built electric cars also has fallen from 25% to 10% for one year, Ayaz told the Thomson Reuters Foundation.

Officials say the tax relief is a big step toward implementing Pakistan's National Electric Vehicle Policy, originally passed by the cabinet in November 2019.


It aims to put half a million electric motorcycles and rickshaws and 100,000 electric cars, vans and small trucks into the transportation system by 2025.

"Definitely the tax exemptions make the price point (on electric vehicles) competitive," said Malik Amin Aslam, the special assistant to the prime minister on climate change.

"It makes it extremely attractive for the customer to go electric."

Aslam said if about a third of new cars sold run on electricity by 2030, as envisioned, Pakistan could see a big drop in climate-changing emissions and pollution.


Electric vehicles currently produce 65% fewer planet-warming gases than those running on fossil fuels, he said.

Pakistan ranks second, behind Bangladesh, according to a list of nations with the worst air quality compiled last year by IQAir, a Swiss group that measures levels of lung-damaging airborne particles known as PM2.5.

In Punjab, Pakistan's most populous province with Lahore as its capital, transport accounts for more than 40% of total air-polluting emissions, followed by industry and agriculture, according to a 2019 study by the United Nations' Food and Agriculture Organization.

Shaukat Qureshi, general secretary of the Pakistan Electric Vehicles and Parts Manufacturers and Traders Association, said the new tax cuts mean savings of up to 500,000 rupees ($2,900) on imported small electric vehicles.

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