SOLAR IN PAKISTAN
Given the load shedding issues and the rise in the prices of electricity bills solar is a very good solution. For industrial and commercial sectors, which operate from 9-5 pm, it is especially effective since most of their work happens when the sun is shinning bright. They can use the photovoltaic effect to their advantage and reduce their dependence on grid electricity.
Unlike offices and industries, households require electricity 24 hours a day. They can also take advantage of this technology. They can either reduce their reliance on the grid during the hours when the sun is available – and even completely avoid load shedding – or can generate electricity and store it in batteries for use later when the sun goes down.
Many businessmen have sold the idea of solar energy as a complete alternative to the grid provided electricity. While this might be true for some commercial and industrial clients it cannot be generalized for the entire population. And even for those commercial and industrial clients it is hard to be completely independent from the grid when there are very cloudy days.
Solar energy was not developed to completely eliminate reliance on the grid all at once. Rather as a mechanism to reduce carbon footprint and conserve utility bills – both electric and gas. In western societies where a large percentage of energy production is done through oil, coal and nuclear reactors, there is a high environmental cost associated with production of energy for end users. Furthermore natural resources around the globe are also reducing. The consequence of this has been an increase in the prices of these precious natural resources, and the eventual increase in utility bills of the common man. Given these circumstances a lot of focus in the developed countries is now going towards renewable energy to reduce their carbon footprint and to significantly decrease their utility bills.
In Pakistan some conditions are similar but the differences need to be mentioned to properly adapt the use of solar technology. First, our biggest source of mass energy production is not oil, coal or nuclear. Hydroelectric is still the cheapest form of energy production in Pakistan, and while we have an abundance of Coal in Thar it might be a while before we get access to it.
Due to poor planning we as a nation were not able to build dams with the pace of population growth. This has made our growth stagnant. New installations of IPPs will pose the same problem as does oil production in the west of – not only economic but also social.
Second important difference is that we have rampant load shedding. The solar product in the west was designed to be used in conjunction with the grid supplied electricity. This implies that large backups are not needed.
One thing that remains similar in Pakistan and the West is the continuous increase in energy prices. While in the West the scarcity of natural resources is driving these costs, in Pakistan there is the additional problem of indirect taxation. It has been observed that in order to reduce our deficits our government is pressured into increasing utility bills by Multi Lateral Agencies such as the IMF and the World Bank.
In such circumstances it is very beneficial for all sectors of the economy to reduce their reliance on the grid provided electricity. The upfront costs of installing might seem high but in the long run it is a feasible expense to occur as it returns the capex in 6-8 years *. This technology has a lifespan of 25 years, so after the first 6-8 years the rest of the years become free.
In Pakistan a number of dealers and retailers have been marketing solar technology as a complete substitute for grid provided electricity. Also, they are charging high premiums for sub standard solar products. Most of it is due to their lack of research on solar and opportunistic mindset of making a profit.
We at Allied Solar do not agree with such a strategy. Our aim is not to sell from a business standpoint only. Rather we believe that our survival lies solely in customer satisfaction and widespread use of this technology while acknowledging its limitations. We strongly believe in providing state of the art technology to customers in Pakistan and building their trust and confidence in this technology. For these reasons, we offer only the best products procured from the leading suppliers all over the globe. Our bottom line is not Operating Profit, Ebitda or Net Income, rather the successful incorporation of this technology by users from all areas of the society.