Thursday, June 16, 2016

Pakistan Power Regulator Publishes New Feed-in Tariffs for Solar

Pakistan’s National Electric Power Regulatory Authority (NEPRA) has published for public comments its revised feed-in tariffs (FiTs) for solar energy projects of up to 100 MW, according to a report in PV-Tech journal.
Source: PV-Tech
The proposed FiTs are slightly lower in Balochistan, Sindh and Southern Punjab region than in Khyber Pakhtun Khwa (KPK) and the rest of Punjab. The proposal for years 1 through 13 includes Rs. 11.128 (US$0.105) per unit for southern region and Rs. 11.783 (US$0.111) per unit for northern region. The rates drop to Rs. 5.588 (US$0.053) and Rs. 5.917 (US$0.056) per unit for northern and southern regions respectively for years 14-25.  The average for the next 25 years works out to Rs. 9.924 (US$0.094) and Rs. 10.507 (US$0.099) per unit for the two regions.

Pakistan Solar Map  Multi-year mean (2000-2012) of daily Global Horizontal Irradiance (GHI) for Pakistan in kWh/m2 [Note: preliminary, unvalidated results] Source: World Bank


Last year, NEPRA, the nation's power regulator,  approved a regulatory framework for solar and wind energy for both commercial and residential installations. The framework includes feed-in tariffs for commercial power producers and net metering for residential applications of up to 1 MW.



Under the new Net Metering Law, NEPRA, the Pakistani power regulator, will grant power generation licenses to solar and wind system owners. The owners will need to register the critical equipment used, particularly the make and model of inverter and generator used. Among other technical considerations, the generator must also install a manual disconnect device to take the system off the network if necessary, according to details published by PV Tech publication.

Net metering is a billing mechanism that pays solar energy system owners for the electricity they add to the grid. It allows a residential customers with rooftop solar panels to generate more electricity than the home uses during daylight hours and sell it to the power supply company. It will require a bi-directional meter (or two separate meters) for implementation.

Pakistan has already introduced feed-in tariffs (FiTs) for larger renewable power systems to supply electricity to the national grid on a commercial scale.  It paved the way for a 1000 MW Quaid-e-Azam solar park being built in Bahawalpur.

Cost of solar power is rapidly declining.  However, Pakistan's NEPRA's attempt to cut tariff down from 14.15 cents to 9.25 cents per unit is being resisted strongly by Zonergy Company Limited, a Chinese company working on Quaid-e-Azam solar park power project, according to a story in Express Tribune newspaper.  This is in sharp contrast to the record low solar tariff of Indian Rs 4.63 per unit (Pak Rs. 7.19)  for 500 MW solar project by US-based Sun-Edison, according to Indian media reports.

Pakistan's renewable power policy and regulatory frameworks have drawn praise from international law firm Eversheds which has described the country as “one of the most exciting renewables markets globally, with an abundance of potential”. Alternative Energy Development Board (AEDB) of Pakistan's CEO, Amjad Ali Awan has said that "Pakistan’s renewable market is relatively new but it provides an attractive investment opportunity with compelling structures which make it bankable as well as marketable."

Net metering law is necessary but not sufficient to promote widespread use of renewable energy. It will take serious coordinated efforts of Pakistan power regulator NEPRA, the country's nascent solar industry and various utilities like K-Electric to start implementation. Meanwhile, consumers could install a stand-alone rooftop solar system that can be connected to the grid in future. They just need to make sure to select high-quality equipment, particularly inverter and switch, for this purpose which will most likely be acceptable to utilities.

Related Links:

Haq's Musings

Pakistan Deploys IT Apps to Improve Service in Public Sector

Solar Power For Pakistan Homes, Schools, Factories

Shakti Solar Model For Pakistan

Pakistan's New FIT Policy For Alternative Energy

Media & Telecom Revolution in Pakistan

Pakistan Building 1000 MW Wind Farms

Pakistan Launches Wind Farm Projects

Renewable Energy to Solve Pakistan's Electricity Crisis

Electrification Rates By Country

Wind Turbine Manufacturing in Pakistan

Pakistan Pursues Hydroelectric Power Projects

Solar Energy for Sunny Pakistan

Wind Power Tariffs in Pakistan



1 comment:

Riaz Haq said...

1.1 GW Of New #Solar Power Capacity Being Developed In #Pakistan with $3 billion in new #FDI http://cleantechnica.com/2016/06/01/1-1-gw-solar-capacity-developed-pakistan/ … via @CleanTechnica

Pakistan is expected to see a sharp jump in operational solar PV 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 currently at various stages of development. These projects will have a 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 of operational capacity. Apollo Solar Pakistan, Crest Energy Pakistan, and Best Green Energy Pakistan are working on 100 MW of solar capacity each. These projects are expected to be commissioned by the end of this year. The total capacity of the Quaid-e-Azam solar park will thus increase to 400 MW against a planned capacity of 1,000 MW.

Six other developers have been issued letters of support for the development of projects with a cumulative capacity of 47.84 MW. The ADEB has also issued letters of intent for the development of 25 projects with a 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 of capacity, of which 300 MW of capacity has already secured financing.

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.