Electricity Is Expensive and Scarce: Solar Is the Best Way to Cover It
When we think Pakistan’s energy problems have reached their peak, things suddenly get worse. While the nation experienced some years of relief in terms of a reliable supply of electricity. The crisis seems to have retaliated more forcefully.
The issue is not complicated; power generation in Pakistan has gotten more expensive as a result of growing fuel prices. And the nation’s continued reliance on imported fossil fuels to generate electricity in this day and age.
The energy mix of Pakistan consists of 64% fossil fuels, and 27% hydropower. 9% of other renewables, and nuclear power, do not improve the problem at all.
Electricity is Getting Expensive
Inflationary costs and power disruptions have resulted from the nation’s failure to switch from thermal power generation to greener. The less expensive power-producing methods. Last month, it was announced that the shortfall had reached 7,000 megawatts (MW). This was terrible news for both families and businesses.
The energy crisis, has reduced Pakistan’s yearly GDP growth by up to 2 percentage points. This is the biggest single economic drag on the nation, claims the Ministry of Finance.
As the backbone of Pakistan’s economy, MSMEs (Micro, Small, and Medium-sized Enterprises) account for 40% of Pakistan’s GDP and 25% of its exports. It is simple to assess the negative effects of the electricity situation on MSMEs.
Companies have reported encountering competitiveness concerns as their productivity suffers greatly as a result of power problems. These are causing the business community to experience frequent power rate increases and a rise in power outages.
The industrial sector’s use and the restricted power generation obstacles. It faces severe repercussions on the other interconnected economic sectors.
Given these issues, which don’t seem to be getting better anytime soon. It’s clear that Pakistan needs to be energy self-sufficient in order to maintain its economy. Renewable energy is the solution to this dilemma.
The voices that have started to emerge in support of renewable energy. It is for one encouraging evidence that this transition is beginning to take shape. Recent calls for PM Sharif to intervene and aid with the customs clearance of solar equipment stalled at several ports came from the Pakistan Solar Association.
The government also plans to begin 14,000 megawatts worth of solar power projects this year. It will replace the pricey electricity generated from imported fuel. This is a component of a scheme that also offers tax advantages and decreased solar system costs.
According to reports, the government has also given the Finance Division and the Power Division instructions to create policies to encourage private sector investment in renewable energy projects, including solar ones, while ensuring prompt payment to investors and project sponsors.
“All these sound like great plans and reflect a solid intent to move away from traditional power generation practices and embrace a greener, less costly methods to produce power indigenously,” shares Sales Director, Feroze Power.”
“The country, especially the industrial sector of Pakistan, needs such encouragement to shift to solar, or other renewable energy, and reap the benefits in the long term. If that doesn’t happen, we’ll see de-industrialization in the country which may be a good indicator for the developed countries, but for a developing country like Pakistan, it means economic disaster.”
Residential and commercial solar system provider Feroze Power offers its clients dependable, sustainable energy solutions. Over a dozen Pakistani businesses are currently using the company to supply their renewable energy demands.
“Pakistani solar potential is immense and our industrial clients realize it well. Imagine just 0.071 percent of the country’s area utilized for solar PV meeting Pakistan’s current electricity demand. The potential can just not be overstated,” he adds.
Solar power does offer itself as one of the more feasible alternatives, especially given that Pakistan’s electricity problem doesn’t seem to be getting any better anytime soon. Pakistan can only address this enormous issue that continues to chew at its socio-economic progress by diversifying its power mix.
“All of our industrial clients are totally satisfied and happy to have taken this decision. It’s understandable how businesses need to take cautious and calculated decisions, but the industrial clients that we have already started reaping the benefits of their solar shift,” adds Feroze Power’s Sales Director.
However, switching to solar is not simple for everyone, especially for small enterprises, who may find the one-time installation fees to be prohibitive. But eventually, the long-term advantages start to outweigh these early difficulties.
“We highly encourage businesses to move to solar power because it’s not an expense, but rather a very fruitful investment. And for those small enterprises who can’t afford the upfront installation costs, we also have easy installment plans to ease their shift,” he adds.
“We understand that businesses can’t afford power shortfall, outages, and electricity bills that are only getting fatter by the day. We’re here to help them and have the best possible solutions to meet their growing power needs for the long term,” he states.
The power tariff is expected to keep rising for both businesses and consumers in the meantime. Additionally, the plans for resolving the power shortage are, at best, hazy, leaving businesses unsure of how to preserve their competitiveness and survive in these unstable economic times.