Comment by Riaz Haq on March 8, 2025 at 9:53am

‘The Solar Blitz’: How crisis-ridden Pakistan is leading the world on the ‘Solar March’ – pv magazine International

https://www.pv-magazine.com/2025/03/04/the-solar-blitz-how-crisis-r...

The annual global solar radiation in Pakistan is 1.5 to 2.5 times the German values. With the possible photovoltaic expansion of 17 GW in 2024 or around 26 GW in the two years 2023/24, depending on the situation in the country, 30 to 50 TWh of solar power could be produced per year.

I'm sorry, what? That would be at least 30% of total electricity consumption, and it was “solarized” in a maximum of two years?

That is entirely conceivable and feasible:

If the regulators/grid operators can't do it, you can also generate XXL electricity yourself with solar energy.

Anyone can get involved — the technology forgives many mistakes and is largely “plug and play”. The Pakistanis are also used to bridging their grid problems with diesel generators or batteries of all kinds, and now both solar modules and batteries are cheaper than ever and available in large quantities. Thanks to the good relations with China, there are no tariffs standing in the way of taking advantage of the low prices in Pakistan. You just get started, put modules on the roof, in the field or wherever. If they fall over or fall down, you just install them again. Finally having permanent and cheap electricity is an extremely good motivation and, as already described, anyone can get involved, because solar is known to range from very small to atomic size.

You can see how quickly a “super grid” becomes obsolete when you combine production and consumption in a decentralized manner at thousands of locations. If the battery or generator is there anyway, there is no discussion about blackouts or anything like that. Impressive.

And yes:

If a poor country can do that — then many others will surely follow suit.

And for our (fear-filled) discussions in Germany, Pakistan can once again be a global example of what is possible if you really want it. Or if the citizens just do it. In Germany and the EU, for example, grids are only popular as long as energy generation cannot take over a 24/7 supply 365 days a year in a decentralized manner (usually redundant anyway) at a much cheaper rate.

The issue is already a reality in China: photovoltaic-wind power-storage hybrids on a gigawatt scale without a grid connection, but because their product is hydrogen and not clean electricity. This is now possible everywhere, even on a small scale, and Pakistan seems to be showing the way with warp speed and XXL.

I am excited to find out what we will learn about the details in Pakistan and how big the “solar flash” really is. For me, it is already one of the most exciting and inspiring stories in my 33 years as a solar entrepreneur. I hope that the people of Pakistan can continue to shape this great development for their own benefit and I am a little jealous of this “just do it, paperwork later” mentality.

Karl- Heinz Remmers — The author Karl-Heinz Remmers has been working as a solar entrepreneur since 1992, beginning with the planning and installation of solar systems and the production of solar thermal collectors. In 1996, he launched Solarpraxis, with its own specialist articles, book and magazine publishing and Solarpraxis Engineering, which is still active today. The successful start-ups also include the pv magazine Group, now overseen by well-known partners, and the conference series Forum Solar Plus. In addition to Solarpraxis Engineering, the focus of his activities today is on the development, planning, construction and operation of solar systems as IPP. He also carries out active political work within the framework of the Association of Energy Market Innovators (bne). More here: https://www.remmers.solar/ueber-mich/

Comment by Riaz Haq on March 8, 2025 at 4:01pm

Pakistan nearing $4.4 billion loan to ease power sector debt

https://www.arabnews.com/node/2592811/pakistan

Pakistan’s government is negotiating 1.25 trillion Pakistani rupee loan with commercial banks
Plugging unresolved power sector debt is top priority under ongoing IMF bailout program
KARACHI: Pakistan’s government is negotiating a 1.25 trillion Pakistani rupee ($4.47 billion) loan with commercial banks to reduce its bulging energy sector debt, the power minister and banking association said.

Plugging unresolved debt across the sector is a top priority under an ongoing $7 billion International Monetary Fund (IMF) bailout, which has helped Pakistan dig its way out of an economic crisis.

“The loan will be repaid over a period of 5 to 7 years,” Power Minister, Awais Leghari told Reuters, adding that the term sheets are yet to be signed.

Pakistan’s government, the largest shareholder or owner of most power companies, faces a challenge in resolving debt due to fiscal constraints. To address this, Islamabad has raised energy prices, as recommended by the IMF, but still needs to settle the accumulated debt.

“We’ve approached many banks, let’s see how many participate. It’s a commercial transaction and they have the choice of participating, however, we think there is liquidity in the system for it and banks have the appetite,” Leghari said.

The government plans to reduce “circular debt” — public liabilities that build up in the power sector due to subsidies and unpaid bills — this year by eliminating government-guaranteed debt and moving to a revenue-based system.

This approach is expected to lower financing costs, enabling the government to pay off interest and service debt obligations, he added.

“Such repricing of liabilities induces more efficiency, and reduces cost for consumers,” said Ammar Habib Khan, adviser to the power minister.

Zafar Masud, Chairman of the Pakistan Banks Association, told Reuters that the interest rate would be a floating exchange rate and the country’s top banks would participate, in addition to those who are already part of the outstanding loan.

“⁠This will help in clearing up all the debt in the next 4 to 6 years which has been sitting on banks’ balance sheets,” he said.

Masud added that more than half of the 1.25 trillion debt is already on the banks’ books and is undergoing restructuring through self-liquidating facilities, which currently lack identifiable cash flows to support them.

Comment by Riaz Haq on March 11, 2025 at 5:01pm

US legal troubles for tycoon Adani expose shortcomings in India's booming solar sector | AP News


https://apnews.com/article/india-solar-adani-bribery-energy-fcpa-4f...

Earlier this month, Trump suspended the Foreign Corrupt Practices Act, raising expectations among some in India that the allegations against Adani might be put on ice. Shares in Adani’s companies surged but then fell just days later when the U.S. Securities and Exchange Commission sought help from Indian authorities in serving its complaint against Adani.

The allegations have had wider repercussions outside India. Adani Green Energy has withdrawn its wind energy projects from Sri Lanka after the island nation sought to renegotiate prices. Kenya canceled energy and airport expansion deals with the company, while investor TotalEnergies, a French oil giant, has paused new investments.



————-

India restricts imports of cheap Chinese solar modules and is subsidizing local manufacturers. That helped raise domestic production by six-fold in 2021-2023, according to the Press Trust of India, though Indian-made solar components are more expensive than Chinese one.

But India lags behind countries like Brazil and Australia in rooftop solar, having installed only 11 gigawatts so far -– far less than the 40 gigawatts it aimed to have by 2022. Policies favoring large installations have constrained growth of solar, which mainly comes from football-field-sized farms, Rutter said.

—————-

India’s state-owned electricity companies are chronically short on cash. By 2022-23 their losses totaled $7.8 billion — 2.4% of India’s GDP, according to government data. Operations are plagued by bad planning, fears of public anger over higher electricity rates and large electricity losses during transmission.

“Waiving the costs upfront makes it cheap for those building power plants, but ultimately the system has to bear that cost,” said Rohit Chandra, a professor at the Indian Institute of Technology in New Delhi.

Accommodating inevitable fluctuations in solar and wind power is also costly, said Vibhuti Garg, an energy economist at the Institute for Energy Economics and Financial Analysis or IEEFA. That means keeping expensive coal power on standby.

Renewable energy is cheaper than coal in India, but utilities still view clean power as just a “statutory obligation,” said Alexander Hogeveen Rutter, an energy analyst in Bengaluru.

Comment by Riaz Haq on March 15, 2025 at 10:00am

Pakistan cuts solar net-metering buyback rate to Rs10 per unit
ECC approves amendments to net-metering regulations to ease financial burden on grid consumers.

https://tribune.com.pk/story/2534077/govt-revises-solar-net-meterin...

The government has reduced the buyback rate for electricity under net metering from Rs27 per unit to Rs10 per unit, citing a "significant increase in the number of solar net-metering consumers" and the resulting financial strain on grid consumers.

The Economic Coordination Committee (ECC) of the cabinet, chaired by Finance Minister Muhammad Aurangzeb, approved amendments to the existing net-metering regulations aimed at alleviating the growing financial burden on grid consumers, according to a statement from the Finance Division.

As part of the approved changes, the ECC revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs10 per unit. The decision follows concerns about the financial impact of the rising number of solar net-metering consumers on the national power grid.

The National Electric Power Regulatory Authority (NEPRA) will now be authorised to revise the buyback rate periodically, ensuring the framework remains flexible and aligned with market conditions.

However, the revised framework will not apply to existing net-metered consumers who have valid licenses, agreements, or concurrence under the NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015.

These agreements will remain effective until they expire, ensuring the rights and obligations of these consumers are upheld as per the original terms.

The ECC also approved an update to the settlement mechanism for electricity billing. Under the new structure, imported and exported units will be billed separately.


Exported units will be purchased at the new buyback rate of Rs10 per unit, while imported units will be charged according to peak/off-peak rates, inclusive of taxes and surcharges.

The Power Division was authorised to issue proposed guidelines, subject to Cabinet’s ratification, for NEPRA’s incorporation into the regulatory framework to ensure clarity and consistency in the implementation of these changes. The decision follows discussions on the growing impact of solar net-metering on the national power grid.

The Power Division highlighted the need for regulatory adjustments due to the record decline in solar panel prices, which has led to a sharp rise in the number of solar net-metering consumers.

As of December 2024, solar net-metering consumers had transferred a burden of Rs159 billion to grid consumers, a figure that is projected to grow to Rs4,240 billion by 2034 without timely amendments.

The number of solar net-metering consumers surged significantly, reaching 283,000 by December 2024, up from 226,440 in October, 2024. The total installed capacity also grew from 321 MW in 2021 to 4,124 MW by December, 2024, underscoring the rapid expansion of the sector.

However, the increase in solar net-metering consumers has led to a higher cost of electricity for grid consumers, undermining the government’s efforts to reduce power tariffs.

The ECC also discussed how these consumers avoid paying the fixed charge component of the tariff, which includes capacity charges and the fixed expenses of power distribution and transmission, placing a disproportionate financial burden on grid consumers.

The committee also noted that 80% of solar net-metering consumers are concentrated in nine major cities, with a significant portion located in affluent areas. This geographic concentration highlights the need for regulatory reforms to ensure fairness and balance within the energy distribution system.

Comment by Riaz Haq on March 15, 2025 at 10:07am

Faysal Bank, Akhuwat Foundation, TCF partner for interest-free solar financing

https://www.thenews.com.pk/print/1290007-faysal-bank-akhuwat-founda...

KARACHI: Faysal Bank Limited (FBL) has strengthened its commitment to sustainability and women’s empowerment by partnering with Akhuwat Islamic Microfinance (AIM) and The Citizens Foundation (TCF), a statement said.

Under this collaboration, the bank aims to provide women with interest-free solar financing. Launched on International Women’s Day, this initiative reflects FBL’s long-term vision of creating an equitable and sustainable future while making a real impact through corporate social responsibility (CSR).

This initiative will allow educators and women across Pakistan to install solar systems with flexible repayment plans.

By promoting green energy, this initiative supports global climate goals. It helps reduce electricity costs, lowers carbon emissions, and lessens reliance on the national grid. Faysal Bank remains committed to meaningful change, ensuring financial relief and sustainability for educators—most of whom are women -- so they can continue shaping future generations.

Speaking on the occasion, President and CEO of Faysal Bank Yousaf Hussain stated: “At Faysal Bank, we believe that true progress is driven by sustainability and empowerment, leading to meaningful action. Through this initiative, we are not only promoting renewable energy but also alleviating financial burdens and fostering long-term resilience for women. In line with this year’s International Women’s Day theme, Accelerate Action, we remain steadfast in our commitment to creating a more inclusive, equitable, and sustainable future -- one where all women have the opportunity to thrive”.

Founder of Akhuwat Foundation Dr Amjad Saqib said: “Our collaboration is a step towards creating a more sustainable and equitable society. By offering interest-free solar financing, we are not only contributing to environmental conservation but also uplifting women and educators, providing them with financial independence and a cleaner, greener future. We extend our heartfelt gratitude to Faysal Bank for supporting this noble cause.”

CEO of TCF Asad Ayub shared his remarks: “This partnership brings together our shared vision of empowering women and ensuring a sustainable future for the next generation. By providing access to solar energy, we are equipping women with the tools for a brighter, self-sufficient tomorrow. We are grateful to Faysal Bank and Akhuwat Foundation for making this initiative possible.”

Comment by Riaz Haq on March 24, 2025 at 8:57am

Report: Pakistan to Unveil Crypto-Friendly Electricity Tariffs to Lure Miners – Mining Bitcoin News

https://news.bitcoin.com/report-pakistan-to-unveil-crypto-friendly-...

Pakistan is reportedly planning to develop a specialized electricity tariff regime for crypto mining and blockchain-based data centers.

In a significant move, Pakistan is reportedly developing specialized electricity tariffs to attract crypto mining and blockchain-based data centers, further loosening its past stance on cryptocurrencies. This initiative aims to capitalize on the country’s surplus power capacity, transforming a potential liability into a valuable asset while fostering growth in the burgeoning digital asset industry.
According to a Dawn report citing sources in Pakistan’s power ministry, extensive consultations are underway with stakeholders to formulate an attractive electricity tariff structure for emerging industries. This development follows a series of high-level discussions, including a recent meeting between Power Minister Awais Leghari and Bilal Bin Saqib, CEO of the newly formed Pakistan Crypto Council (PCC).

As reported by Bitcoin.com News, the PCC was launched with the mandate of integrating blockchain and digital assets into the financial system. The PCC’s inaugural meeting on March 21, presided over by Finance Minister Muhammad Aurangzeb, further solidified the government’s interest in exploring the crypto space.

At this meeting, Saqib presented a vision for utilizing Pakistan’s surplus electricity for bitcoin mining, drawing significant attention from attendees, including State Bank Governor Jameel Ahmad and the Securities and Exchange Commission of Pakistan Chairman Akif Saeed.

In remarks commending the PCC’s first meeting, the Pakistani Finance Minister said, “This is the beginning of a new digital chapter for our economy. We are committed to building a transparent, future-ready financial ecosystem that attracts investment, empowers our youth, and puts Pakistan on the global map as a leader in emerging technologies.”

The PCC-sponsored initiative highlights the shift in Pakistan’s approach to cryptocurrencies. Previously, Pakistan regulators, including the State Bank of Pakistan (SBP), warned against the use of cryptocurrencies, citing concerns about money laundering and financial instability. In 2023, the SBP and the Information Ministry considered banning cryptocurrencies altogether.

The government has since recognized the potential of blockchain technology and digital assets, leading to its latest attempt to attract miners.

Comment by Riaz Haq on April 2, 2025 at 9:43am

Cheap solar power is sending electrical grids into a death spiral

https://www.economist.com/finance-and-economics/2025/02/13/cheap-so...

In 1812 frederick winsor, a madcap entrepreneur, invented the public utility. The idea behind his Gas Light and Coke company, which would supply residents of London, was that instead of each household buying its own energy—bags of coal, bits of firewood—the stuff would be piped directly to them from a central location. More customers, with differing patterns of demand, would allow power plants to be used more efficiently. It was a natural monopoly: scale would spread the cost of the gasworks, the pipes and so on across large numbers of customers, each spending less than they would individually to consume just as much. The idea of “energy as a service” spread across the world.

But cheap solar power is now breaking the model. Last year Pakistan became the world’s third-biggest importer of Chinese solar panels. Many were destined for the roofs of commercial and industrial outfits or farms, to replace diesel generators. Pakistan has sky-high energy prices, a legacy of expensive contracts to pay for capacity from often Chinese-built coal plants. The adoption of cheaper, cleaner solar power is a welcome development. At the same time, however, it leads to a vicious cycle. The costs of running the grid and paying for coal power fall on fewer people, who then have more reason to opt out, undermining the economics of the whole enterprise.

South Africa has seen a similar development. “Load shedding” by Eskom, a state-owned energy firm, cuts off users when there is insufficient electricity to meet demand. This has led to a solar boom, causing financial problems for municipal governments, which have to buy increasingly expensive power from Eskom to sell on to consumers. By November they had unpaid bills of 95bn rand ($5bn, or 1.2% of gdp) with the firm. In Lebanon, where the state energy company limited electricity generation to a couple of hours a day in 2019, the amount of installed solar power rose from 100 to 1,300 megawatts from 2020 to 2023. Rooftops in Beirut’s richer neighbourhoods are covered by dark panels.

Even in America, high energy prices and blackouts after natural disasters have persuaded people to go off-grid. Seyyed Ali Sadat and Joshua Pearce, both of Western University, have found that in parts of five states a mixture of solar panels, batteries and diesel generators is a cost-effective alternative to relying on the grid. And prices of such systems are falling by around 9% a year, they estimate, owing to cheaper batteries and solar panels.

For optimists these trends present a vision straight from the green movement of the 1970s. Back then, Amory Lovins, an energy analyst, coined the term “soft energy path” to describe a future in which power would be renewable, decentralised and small-scale. “An affluent industrial economy could advantageously operate with no central power stations at all,” he wrote. Libertarians cheer the shift, too. Technological change is making electricity markets more “contestable”, says Lynne Kiesling of the American Enterprise Institute, a think-tank. The possibility of disconnecting, even if unused, means that natural monopolies face the threat of defection.

Daylight robbery
Yet there are drawbacks to the change. One concerns efficiency. Over its lifetime, a solar farm’s per unit cost of energy comes to around a quarter of that from rooftop solar, estimates Lazard, a bank. There are economies of scale in installation and maintenance. On top of this, lots of self-generated power will ultimately be wasted.

Comment by Riaz Haq on April 2, 2025 at 9:44am

Cheap solar power is sending electrical grids into a death spiral

https://www.economist.com/finance-and-economics/2025/02/13/cheap-so...

Moreover, the upfront cost of quitting the grid typically makes it a viable option only for the rich. Since wealthier Pakistanis can pay for their own solar systems, poorer ones are forced to bear more of the costs of the grid or do without electricity altogether. In Lebanon the lack of regulation has made the country “a dumpster of low-quality solar systems and batteries”, says Jessica Obeid of the Middle East Institute, a think-tank. The small firms that crop up to install them go bankrupt and cannot provide maintenance.


Policymakers are now attempting to come up with solutions. “You can make solar play nice with the grids,” says Jenny Chase of Bloombergnef, a research firm. Pakistan’s problems emerge from its legacy of high-cost coal power and the way in which customers are charged: fixed costs arising from transmission and distribution are paid back through hourly prices, which do not flex much according to demand. For the moment, few people have energy-storage systems, which means that they use the grid as backup rather than disconnecting altogether. As a consequence, those who are able to afford a solar system can free ride, enjoying their own electricity when the sun shines and making use of the grid for artificially cheap power when it sets. Residential consumers also enjoy “net metering”, gaining credit for supplying electricity during daytime when it is less valuable. Eliminating such incentives would help spread the cost of maintaining the grid in a fairer manner.
Yet the best solution would be for energy firms to respond to the competition and sort themselves out. In Pakistan they often fail to make consumers pay their bills. In South Africa, as Eskom has at last managed to curtail blackouts, the solar boom has slowed down. Although decentralised energy production may be destabilising, it does mean that providers have an incentive to improve. Rooftop solar offers an alternative to a monopoly that can no longer be considered natural.

Comment by Riaz Haq on April 4, 2025 at 5:47pm

Two cement firms boost renewable energy capacity with new projects - Profit by Pakistan Today

https://profit.pakistantoday.com.pk/2025/04/04/thatta-cement-comple...

Thatta Cement completes 4.8 MW wind power project in Sindh, Cherat Cement commissions 6.065 MW solar power plant in KP

Two cement firms, Thatta Cement and Cherat Cement, have made significant advancements in increasing their renewable energy capacity.

Thatta Cement announced the successful completion of its 4.8 MW wind power project at its plant in Thatta, Sindh, ahead of schedule. The project, which became operational on April 3, 2025, adds to the company’s growing renewable energy portfolio, which now includes a combined 9.8 MW capacity from wind and solar sources.

As a result of this announcement, Thatha Cement’s stock saw an immediate boost, with the share price rising by Rs 4.26, or 1.97%, reaching Rs 220.25 by 11:29 AM on April 4, 2025. This upward movement reflects investor confidence in the company’s sustainable energy strategies.

The company’s equity profile shows a market capitalisation of Rs 21.96 billion, with approximately 30% of shares in free float, indicating a healthy liquidity position in the stock market.

In a similar move, Cherat Cement announced the successful commissioning of its 6.065 MW solar power plant at its factory site in Nowshera, Khyber Pakhtunkhwa, on April 3, 2025. The company expects the total project capacity to reach approximately 9 MW, with an additional 2.935 MW set to be energized within the current financial year.

This project is expected to enhance the company’s captive power generation capacity, reducing reliance on traditional power sources.

Comment by Riaz Haq on April 5, 2025 at 7:34pm

Pakistan’s 22 GW Solar Shock: How a Fragile State Went Full Clean Energy - CleanTechnica

https://cleantechnica.com/2025/04/04/pakistans-22-gw-solar-shock-ho...


It’s more solar than Canada has installed in total. It’s more than the UK added in the past five years. And yet it didn’t make a blip in most Western media. While the U.S. continued its decade-long existential crisis about grid interconnection queues and Europe squabbled over permitting reforms, Pakistan skipped the drama and just bought the panels.

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How does a country once considered a textbook fragile state leapfrog into solar hyperscale? You can’t make sense of it without going back two decades. In the early 2000s, Pakistan was better known for insurgencies and instability than infrastructure upgrades. Terror attacks were frequent, electricity shortages were the norm, and governance was, to put it kindly, patchy. Political cycles flipped with the military’s mood, floods battered the countryside, and inflation hollowed out public services. Not exactly the backdrop for a clean tech success story.

But something changed. Slowly, unevenly, Pakistan started building institutional muscle. The terrorism that plagued the country for over a decade was brought under control through a combination of military operations and negotiated truces. Civilian governments, for all their dysfunction, managed peaceful handovers of power. The technocratic class—policy analysts, engineers, civil servants—began steering the country toward energy pragmatism. It wasn’t a revolution. It was governance on hard mode, with better outcomes.

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This isn’t just a solar story, though. Wind has been building quietly in the south for years, especially in the Gharo-Jhimpir corridor. Hydropower continues to play a big role, and bagasse from the sugar industry chips in some renewable electrons too. Battery storage is the next act, mostly in the form of hybrid inverters and lithium-ion packs tucked into homes and businesses. They aren’t grid-scale yet, but they’re everywhere you’d want resilience—factories avoiding outages, households tired of flickering bulbs. The pieces are in place for a distributed energy system that doesn’t wait for the grid to catch up. Which is good, because Pakistan’s grid is not remotely ready for this volume of variable generation. Utilities are already reeling from the revenue shock as high-value customers opt out of dependence. No one likes selling electrons when your best clients are making their own. That looming utility death spiral? It’s not theoretical in Lahore or Karachi.

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Pakistan’s electric vehicle transition is picking up momentum too, driven by a mix of foreign investment and homegrown innovation. Chinese companies have taken the lead in setting up large-scale operations, with firms like BYD announcing plans to open a production facility in Karachi and the ADM Group committing $350 million to build EV manufacturing capacity and install thousands of charging stations nationwide. These moves dovetail with Pakistan’s goal to convert 30% of all vehicles to electric by 2030.

But the real action is happening closer to the ground, where indigenous startups are rolling out electric two- and three-wheelers at a pace that could reshape urban mobility. Companies like Jolta Electric and Vlektra are assembling locally made e-motorcycles that target the country’s massive base of two-wheeler users—millions of whom rely on scooters and bikes for daily transport. With soaring petrol prices and worsening air quality in cities like Lahore and Karachi, these electric alternatives are fast becoming the obvious choice. The economics are simple: lower fuel costs, less maintenance, and in many cases, the ability to charge with rooftop solar. While car-scale EV adoption remains limited, the grassroots uptake of electric bikes and rickshaws—many of them assembled in Pakistan—is proving that the EV revolution here will likely be led from the bottom up.

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