Besides the obvious advantages of using solar energy, there are also some other benefits of industrial solar installation. Some of the most important ones include the reduced energy cost, increased efficiency and lower environmental impact.
Commercial Rooftop Solar Power Plant is profitable for large commercial businesses
There are plenty of options when it comes to installing commercial rooftop solar power plants in Pakistan. However, it's important to understand what is involved.
In addition to installing panels, there are other pieces of equipment you'll need. These include replacement batteries and solar water heater products. It's also important to have insurance to cover liability claims.
Incentives can help drive costs down. Some of these incentives are revenue support mechanisms, which can help to reduce the total cost of a solar project by 15-30%.
Other benefits of installing a solar system can be environmental protection and a guaranteed savings from day one. The International Energy Agency reports a consistent growth in demand for social energy solutions.
A solar Purchase Power Agreement (PPA) can help to minimize the upfront investment needed for a solar installation. PPA operations are safe and easy to manage. This makes it ideal for large businesses.
As mentioned in the previous paragraph, rooftop solar has changed the power industry. Large commercial businesses have been encouraged to use renewable energy to offset their grid electricity expenses.
Scaling is another issue
The Pakistani solar energy market is a medium sized fragmented industry. It is likely to grow at a CAGR of 2.5 per cent over the forecast period. Some of the major players include Alpha Renewables (SMC-PVT) Ltd, Shams Power Limited, Zonergy and Reon Energy Limited. Although the cost of solar energy in Pakistan is high, the technology is expected to be more competitively priced in the future.
Solar energy has the potential to solve many of the country's nagging energy woes. In fact, there are already a number of projects in the pipeline. In fact, the national assembly of Pakistan recently installed the world's first solar powered parliament.
While the world is full of acronyms and buzzwords, the true cost of one kWh of energy produced by solar technology is around PKR 65,000. That makes solar energy a viable option for remote areas of the country, where grid connections are not an option.
There are some serious obstacles to overcome. However, it's not impossible to make solar energy the primary source of electricity for Pakistan.
Energy mix is dependent on oil, LPG and natural gas
Pakistan's energy mix is dominated by oil and natural gas. These three fuels account for over a third of the total energy consumption in the country.
Pakistan's domestic consumption of natural gas has risen at a very fast rate. The increase is largely driven by increasing population. This has led to the creation of a CNG motor vehicle industry. But these efforts are being challenged by a number of regulatory hurdles.
It is also worth noting that the energy mix is highly dependent on the import of fuel. As a result, Pakistan faces several challenges, including energy shortages and the creation of a high debt recycling situation. In addition, the energy sector is facing a lack of investment in hydroelectric power plants.
There is an urgent need to improve the energy sector of Pakistan. This includes a shift towards renewable energy sources. Moreover, the country needs to implement greenhouse gas mitigation technologies.
However, in recent years, the Pakistani government has been struggling to reshuffle its energy mix. While the nation has an ample supply of fossil fuels, it is not able to produce enough through alternative resources.
Energy is a key role in the development of modern economies
Energy is one of the key factors in the development of modern economies. It makes possible innovations, new industries, and improved economic and social outcomes. Moreover, energy has become an essential component of global climate change mitigation.
As we are approaching the midpoint of the century, the world is poised for a fundamental change in the energy landscape. This will likely provoke a series of challenges. Developing countries will experience the most pressure. Ultimately, farsighted leaders must prepare now.
The energy landscape is set to change, and its impact will have far reaching implications for the range of industries. These changes are driven by a combination of drivers.
A growing middle class has increased energy demand. Moreover, the rising cost of energy has made it difficult for developing countries to mitigate the costs. Consequently, more and more people are left without access to basic energy needs.
China is one of the largest drivers of energy demand. It has signed bilateral agreements with a number of Central Asian nations, and has also engaged in extensive 'pipeline diplomacy' with countries.
