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So I quickly checked on Google Maps, just random area around the centre of Lahore, and I was really surprised to see vast majority of roofs having solar panels on them.The gist of the article is that the government has not helped much in this phenomenonal expansion of solar sector. Infact it has implemented 18% sales tax and reduced benefits of net metering. On my street where l live 8 out of 10 houses have solar systems.
These days solar panels are available but solar batteries are difficult to get. No wonder a Chinese company is investing 15m $ to set up a factory. This sector is going places.
This is all good but what will happen to government circular debt .. as the consumption dried down due to solar... but government has to pay capacity payments. Eventhough the fossil fuel cost should be down . A country like pakistan can adopt more solar and wind turbines with battery backup to eliminate usage of gas, coal and other fossil fuel powered plants
Some of the IPP contracts have already been renegotiated, some are up for sale and the Chinese Government has been asked to intervene on some of them.This is all good but what will happen to government circular debt .. as the consumption dried down due to solar... but government has to pay capacity payments. Eventhough the fossil fuel cost should be down . A country like pakistan can adopt more solar and wind turbines with battery backup to eliminate usage of gas, coal and other fossil fuel powered plants
Work is in progress on those fronts as well.Good
But Pakistan should establish a large solar manufacturing and production plant and battery banks in Pakistan rather than buying everything from China
www.arabnews.com
This is all good but what will happen to government circular debt .. as the consumption dried down due to solar... but government has to pay capacity payments. Eventhough the fossil fuel cost should be down . A country like pakistan can adopt more solar and wind turbines with battery backup to eliminate usage of gas, coal and other fossil fuel powered plants
At some point, Pakistan needs to do something in that regard. It will not be popular. The World Bank and IMF will be up our A**. Something like a hostile takeover or default to not pay at all. With options for them to move the plants out or for Pakistan to pay a one-time fee and take over the plant itself. And focus on alternate cheap energy. Solar, wind, water/ hydel, nuclear, and coal [local] production. Get rid of all gas-based production units. or minimize them.Maybe time to declare Force Majeure on the contracts ? Given that people are not using the grid, why does it need to pay for capacity?
Most of the capacity payments are made to local investors including our politicians.At some point, Pakistan needs to do something in that regard. It will not be popular. The World Bank and IMF will be up our A**. Something like a hostile takeover or default to not pay at all. With options for them to move the plants out or for Pakistan to pay a one-time fee and take over the plant itself. And focus on alternate cheap energy. Solar, wind, water/ hydel, nuclear, and coal [local] production. Get rid of all gas-based production units. or minimize them.
not 100% TRUE. It made its way to the power houses where local politicians and investors are partners along with external investors.Most of the capacity payments are made to local investors including our politicians.
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