Comment by Riaz Haq on August 19, 2024 at 6:04pm

Solar projects receive lowest-ever tariff bid

Bid of Rs11.2 per unit marks pivotal shift in renewable energy sector

https://tribune.com.pk/story/2489390/solar-projects-receive-lowest-...

KARACHI:
In a landmark development, K-Electric's (KE) 150-megawatt solar energy projects in Balochistan have achieved the country's lowest-ever tariff bid, setting a new industry benchmark and marking a pivotal shift in the renewable energy sector.

A bid of Rs11.2 per unit, revealed during a ceremony, underscores the trust in private sector-led initiatives, particularly in the context of Pakistan's ongoing economic challenges. Earlier, Bloomberg News highlighted KE's endeavours to nearly double Pakistan's solar capacity by adding 640MW of clean energy to its portfolio in the next two years.

It was revealed that the bidding process for those projects began in August and would conclude in September 2024. The portfolio, which includes 200MW of hybrid solar-wind generation, is also a critical component of KE's strategy to reduce reliance on expensive fossil fuels and lower the country's overall import bill.

The 640MW of projects, currently in the pipeline, have been divided into three tranches: 150MW solar projects in Balochistan, a 270MW project in Sindh and a 220MW site-neutral project that will be the first hybrid solar and wind energy venture. These projects are expected to significantly increase the share of renewable energy.

Pakistan has long been plagued by high electricity prices, driven by its dependence on costly fossil fuel imports. With monthly electricity bills having risen 155% since 2021, often surpassing rent costs for many families, the shift towards more affordable and sustainable energy sources is both urgent and necessary.

Currently, solar energy accounts for just 1% of the energy mix, with a total capacity of 630MW. Doubling this capacity could provide much-needed economic relief to consumers and help stabilise the energy sector.

The recent financial bid opening event in Karachi was attended by representatives from both international and local entities, including JCM Power Group and Hecate Global Renewables from North America, and Pakistani companies such as Atlas Power, Hub Power Holding Co and Sapphire Electric Co.

Comment by Riaz Haq on August 20, 2024 at 7:35pm

Can ride-hailing, logistics and delivery companies lead an EV revolution in Pakistan? - Business & Finance - Business Recorder

https://www.brecorder.com/news/40292113

TCS Private Limited, one of the largest logistics organizations in Pakistan, initiated a pilot project in December 2023 with 50 electric bikes in collaboration with the start-up ezBike. These bikes are equipped with 2KW batteries and have a range of up to 100 km, capable of carrying a 40 kg delivery box.

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Pakistan is seeing a massive surge in intent and efforts when it comes to adopting electric vehicles (EV), but there are significant challenges – including logistical constraints – on the road ahead, say experts.

Surging fuel prices, record inflation, and an economic crisis in the backdrop of devastating floods and effects of climate change have all pushed consumers towards the ‘greener’ option. However, many still believe that it will take a lot more before EVs become a more common sight in Pakistan.


“EVs (four-wheel) or even electric bikes are mostly bought by the affluent, and these are their second vehicle, rarely used, mostly as a hobby,” said auto dealer Anjum Rizvi who has a showroom in Karachi’s Khalid Bin Waleed area.

“Most people are reluctant to buy EVs. It’s not because they don’t like them. They see it as an ‘experiment’ at the moment and in this time of high inflation, no one wants to experiment with money.”

While Pakistanis may need to wait before seeing EVs ply on the roads, the harm being caused by traditional vehicles will be irreversible.

Yasir Hussain of Climate Action Center – a group that creates awareness for climate change initiatives – said roughly, over 50% of Pakistan’s air pollution in urban areas comes from tailpipes. Reducing pollution due to mobility will be one of the major feats for a sustainable future.

Rizvi said positive user experiences will be the biggest reason behind people embracing EVs at an individual capacity.

“Government can play a role and more importantly, the bulk use of transport, such as ride-hailing and logistics companies, can play a role as they can overcome challenges comparatively easily as compared to individuals,” Rizvi said.

Experience so far

However, the picture in the industry setup tells a different story.

After interviewing at least half a dozen key players in the ride-hailing, delivery and logistics space, there are several hindrances in the adoption of EVs.

Hussain of Climate Action Center said electric motorcycles have been facing challenges in the ride-hailing segment because the passenger weight significantly reduces efficiency – the prime reason for adopting an electric bike.

Rafiq Malik, chief operating officer of Bykea, among the leading players in the space, corroborated this. He also mentioned that extra weight and speed significantly reduce range.

“The first wave of EVs generally isn’t well-suited for a bike-taxi business. Similar feedback comes from Gojek in Indonesia and Ola in India (once you remove the subsidies).”

Bykea conducted a pilot with electric bikes from January to June last year. However, they encountered significant challenges.

In an interview with Business Recorder, Malik stated the first challenge is the high price of electric bikes, which is on average 3-4 times higher than that of an ICE (Internal Combustion Engine) motorcycle.

The company also struggled with battery performance.

“We experienced performance uncertainty and noticed the battery performance deteriorating over time. Initially, we achieved 70 km per charge, which dropped to around 50 km per charge by the third or fourth month,” Malik said.

Another challenge they faced was electric bike maintenance.

“There is no repair ecosystem available, and drivers would have to return the bike to the vendor for minor repairs, leading to significant downtime and revenue loss.”

Comment by Riaz Haq on August 23, 2024 at 11:37am

BEIJING, Apr 24 (APP): Pakistan, in its timely joining the global trend, is ramping up cooperation with international EV giants to amplify its own competence.

Last month, Automobile brand Huazi Green Energy, a joint Pakistan-China venture, announced the plan to display the first electric car in Islamabad this month, achieving yet another score in Pakistan’s EV endeavour.

https://www.app.com.pk/global/pakistan-catching-ride-on-global-ev-b...

In May, Chinese vehicle manufacturing company Huaihai in collaboration with its Pakistani partner announced that it is seeking to expand its existing business by investing $10 million in manufacturing electric vehicles, starting with two-wheeler and four-wheeler vehicles in Punjab.

Among the global players, China’s presence in the international EV market has become too prominent to be neglected. Among the global EV sales, 59% are contributed by China, which is also the world’s biggest EV producer, with 64% of global volume.

In the first half of this year, China’s EV brand BYD witnessed a record-breaking 95.8% increase y-o-y of cumulative sales, snapping global sales champion. Last month, the country rolled the 20 millionth EV vehicle off the assembly line, China Economic Net (CEN) reported on Wednesday.

Pakistan is not the only country that has set its eye on the biggest automaker in the world as international venerable auto brands are trying to snatch a share of China’s EV dividend.

Also last month, German automobile manufacturer Volkswagen invested $700 million in leading Chinese smart EV company XPENG, taking 4.99% of the latter’s shares. They also announced the joint development of two B-class battery electric vehicles (“BEV”) models for sale and collaboration on future EV platforms, software technologies and supply chains.

Following its subsidiary Audi’s move to join hands with China’s SAIC Motor to develop intelligent connected vehicles (ICVs), this was considered by some auto experts as a watershed moment for China’s auto sector to shift from technology import to export, which is expected to shape a new international divison of labor.

A number of Chinese companies such as BAIC, Changan, JAC Motors, Great Wall Motors, MG, FAW, and Chery Automobile have established their presence and even formed joint ventures in Pakistan, driving the EV industry in the country towards intelligence and electrification.

“While there is a long way to go for Pakistan to build the EV infrastructure, cut down EV prices, and produce parts locally, we have a lot to benefit from the technology transfer from global tycoons like China. On my visit to one of the EV manufacturing hubs in China, Yangtze River Delta, I was surprised to see that a new energy vehicle can be produced within four hours, with chips and software from Shanghai, batteries from Changzhou, Jiangsu Province, and integrated die-casting machine from Ningbo, Zhejiang Province. In the complete, highly-efficient supply chain, there are countless models for us to learn from”, a Lahore-based automobile seller said.

Comment by Riaz Haq on September 2, 2024 at 8:51am

Budget 2024-25: Production of solar panels, inverters and batteries becomes cheaper - Must Read - Aaj English TV

https://english.aaj.tv/news/330365159/budget-2024-25-production-of-...

According to the finance bill, the government has eliminated all taxes on machinery and equipment used in the manufacturing of lithium-ion batteries, most of these were subjected to taxes ranging from 5% to 20%.

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Pakistan’s energy system strained by surge in solarization, battery tech

https://www.thenews.com.pk/print/1215486-pakistan-s-energy-system-s...

ISLAMABAD: The rapid solarization and advancements in battery technology are increasingly challenging Pakistan’s existing energy system.

The influx of over 7,000 megawatts of imported capacity, coupled with some industrialists and bulk consumers installing in-house plants of up to 1.5 megawatts, threatens to disrupt long-term agreements with Independent Power Producers (IPPs).

This situation is exacerbated by mounting frustration among power consumers, who are being burdened with substantial multi-billion-rupee capacity charges on their monthly bills.

The provincial governments, especially Punjab and Sindh’s distribution of solar panels to the public, will further pressurise the system, as they will now be drawing less from the grid and so the burden of capacity charges will increase and ultimately the tariff, which will further take away consumers from the grid power.

“Various bulk consumers have done aggressive solarization, even they installed capacity of up to 1.5 megawatts and have kept the grid at backup,” Chairman Nepra Waseem Mukhtar said while presiding over a public hearing on Wednesday adding, “It’s [solarization] a threat.”

The Nepra chairman said that this 7,000 MW imported solar capacity is not for only rooftops, bulk consumers are also installing their big capacities. He also tasked the CPPA with conducting a study on solar energy usage, mapping and submitting a report to Nepra.

Central Power Purchasing Agency (CPPA) while pleading the case on behalf of Discos reported that electricity consumption in June 2024 was 10 percent lower than the reference period consumption, while two percent less than last year.

Waseem Mukhtar said that the government has launched a study to determine if Pakistan requires additional power generation capacity. He emphasized the need for a logical approach to adding more electricity to the national grid. The study is also evaluating that Commercial Operating Dates (CoDs) for some plants may be postponed, he said, mentioning that the study will determine which plants can be retired early.

Comment by Riaz Haq on September 2, 2024 at 8:42pm

Indian reliance on Chinese imports is challenge for U.S. trade strategy - The Washington Post


https://www.washingtonpost.com/world/2024/09/02/india-china-manufac...

NEW DELHI — American businesses looking to reduce their reliance on China have increasingly been eyeing India in the past few years as a new manufacturing hub — and as a hedge against potential disruptions in Chinese supply chains caused by rising geopolitical tensions or another pandemic.

But as India has amped up its production of goods like smartphones, solar panels and medicine, the Indian economy itself has become even more dependent on Chinese imports, in particular for the components that go into these products, according to trade figures and economic analysts.

This dynamic serves as a reality check for U.S. policymakers, who have been urgently promoting efforts to diversify supply chains away from Chinese factories and “de-risk” the commercial relationship with China.

“Unless China stops being the third party from where components come in and we just assemble, that de-risking is not going to happen for any country coming in and producing in India,” said Sriparna Pathak, an associate professor at Jindal University focusing on India-China relations.



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To support the production of Indian textiles and garments, another important export industry, India has been ramping up imports of yarn and fabric from China. Even the automobile industry — considered a success story for both domestic and export sales — has been increasing its imports of vehicle parts and accessories from China.

As with electronics, India has made significant strides in producing solar panels but now relies even more on the Chinese solar cells that go in them.

After the United States restricted imports of Chinese solar panel material because of concerns about human rights and labor abuses, Indian exports of solar panels to the American market spiked in 2022, increasing in value by almost 150 percent, according to U.S. government trade figures. The next year saw an even sharper increase.



During that time, however, India sourced between half and all of its solar panel components — such as modules, cells, wafers and solar glass — from China between 2021 and 2023, according to a BloombergNEF report at the end of last year.

Senior Biden administration officials said it is not realistic to think that inputs from China can be excluded at this moment from American supply chains. “We have taken a more practical view that in order to effectively diversify, the first step is to get a foothold in the parts of this supply chain where you can diversify today. And then from there you can grow upstream,” said a senior administration official, speaking on the condition of anonymity to discuss sensitive strategies toward China.

Addressing the significant presence of Chinese components in Indian-made solar panels, the official said: “We recognize we are in the first inning of a long game, but we are at an inflection point in that there is now a clear recognition, not just in the U.S. and India but among friends and allies, that being overly reliant on one source for the clean-energy economy is not sustainable and requires a concerted effort to de-risk. But it’s going to take time.”

Comment by Riaz Haq on Friday

Electric vehicles will account for up to half of auto sales by 2030, BYD Pakistan says



https://finance.yahoo.com/news/electric-vehicles-account-half-auto-...

KARACHI (Reuters) - Up to 50% of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets, BYD Pakistan, a partnership between China's BYD and Pakistani car group Mega Motors, said.

Warren Buffett-backed Chinese electric vehicle giant BYD last month announced its entry into Pakistan, making the South Asian nation of 250 million people one of its newest markets.



The partnership has announced plans to open an assembly plant in early 2026, but will introduce vehicles for sale later this year, after launching three models in August.

"I see conversion to new energy vehicles NEV at up to 50%," Kamran Kamal, BYD's spokesperson in Pakistan, told Reuters in an interview at his office on Thursday. Kamal is also the CEO of Hub Power, which owns Mega Motors.

The target is an ambitious one for Pakistan's auto sector, which has been largely dominated by Japanese automakers Toyota, Honda and Suzuki, with vehicle sales hitting a 15-year low in the fiscal year to June.

Recently South Korea's KIA has begun challenging for market share along with Chinese companies Changan and MG, all of whom offer hybrid vehicles. BYD Pakistan is the first major new energy vehicle entrant in the Pakistani market.

Hybrid electric vehicle sales in Pakistan have more than doubled in the past year. While reaching 30% NEV adoption by 2030 is feasible, achieving 50% may be more challenging due to infrastructure hurdles, said Muhammad Abrar Polani, auto sector analyst at Arif Habib Limited.

Kamal said the challenge of charging infrastructure would be addressed by government plans to incentivise its construction.

Local media reported in August that standards for EV charging stations had been drafted by the power ministry, with the government considering offering them affordable electricity.

Kamal said BYD Pakistan is collaborating with two oil marketing companies to establish a charging infrastructure network and aims to establish 20 to 30 charging stations within the initial phases concurrent with the rollout of its cars.

BYD Pakistan will initially sell fully assembled vehicles, which are subject to higher import charges than vehicles shipped in parts and assembled locally.

"Our main focus is to have locally assembled cars on the roads as soon as possible," said Kamal, citing difficulties in importing and selling fully assembled units under Pakistan's current duty structure.

Kamran said BYD Pakistan is deciding on the size of a new plant, but details about the investment and partnership with power utility HUBCO will be disclosed later.

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