Benefits of Industrial Solar Energy Systems in Pakistan 2023/24

Pakistan has a huge potential for solar energy. It can help in solving the energy crisis in Pakistan by providing cheaper, cleaner, and reliable electricity.

We should urgently scale up renewable energy to achieve higher energy security and reduce the dependence on fossil fuels. Incentives such as tax reductions and import duty exemptions can be a big motivation for local developers to invest in solar energy projects.

Cost-Effectiveness

In Pakistan, energy is vital for the socioeconomic development of the country. However, fossil fuels are not sufficient to meet the increasing demand for energy in the country.

Hence, the government is exploring different sources of alternative and renewable energy to resolve this issue. One of the most promising solutions is solar energy.

Solar energy is a sustainable source of electricity that is cost-effective and environment-friendly. It does not produce greenhouse gas emissions or contribute to climate change, which makes it a good option for industrial development in the country.

Pakistan is located in the sun belt and has enormous solar energy potential. The solar map published by the World Bank shows that Sindh and Baluchistan have the highest potential for solar power. It is a great opportunity for Pakistan to harness this natural resource and solve the energy crisis in the country. The country can also benefit from the implementation of a large-scale solar energy program to electrify rural areas and reduce the energy gap.

Environmentally-Friendly

Unlike fossil fuels, solar energy does not create harmful gases or carbon emissions during electricity generation. Therefore, it is an environmentally-friendly option for industrial power generation.

Pakistan is a sun-belt country with high solar irradiation throughout the year. It is also one of the most irradiated countries in the world and thus, has tremendous potential to exploit solar energy.

The government has already taken steps to promote the adoption of solar energy in Pakistan by offering incentives such as net metering and export rate rebates. These measures will help to increase the penetration of solar energy in the country and lessen its reliance on fossil fuels for power production.

Increased Productivity

Pakistan is a great location for solar energy. The country is rich in a variety of types of solar resources. It has one of the highest solar irradiance rates in the world. However, there is a lot of work to be done to utilize this resource.

The Pakistani government has set big goals. It wants to increase the use of renewable energy to 30% by 2030. This will make electricity cheaper and reduce carbon emissions. The goal is to also improve energy security and decrease dependency on coal and hydropower.

The government will also focus on energy reforms in the upcoming budget 2023/24 to cut reliance on imported fuel. This will include measures to reduce power theft and distribution losses. The government will also encourage industrial consumers to install solar panels on their rooftops and enable net metering. This will reduce the cost of electricity in businesses. It will also help to reduce the power shortage in the country.

Energy Security

Geographically Pakistan has immense solar energy potential, which can be harnessed to reduce heavy reliance on fossil fuels for power generation and provide affordable and reliable electricity. It can also guarantee the sustainable development of the country.

It is estimated that if 30 percent of the current electricity generation capacity in Pakistan was replaced with renewable energy, it would cost less than what we are currently paying for imported coal. However, this requires a massive investment in the transmission system and regular rounds of competitive bidding.

The government should encourage private investors by offering 15-20pc tax credit on their solar PV investments, which will significantly reduce the initial cost and shorten the payback period for large-scale projects. Furthermore, the electricity distribution and transmission network in Pakistan is old and requires modernization. The government should also focus on mobilizing society and implementing policies that will make it easier for people to install and utilize solar energy technology.