Syed Marwan Shah

High demand for the solar photo voltaic (PV) panels and allied equipment in Pakistan necessitates their local manufacture to prevent the outflow of hard-earned foreign exchange, reports WealthPK. The local manufacture of solar panels and allied equipment will save valuable foreign exchange through indigenization, draw in investment and provide skilled job opportunities for engineers and technicians.

Talking to WealthPK, Sungreen Electric CEO Waheed Ahmad said Pakistan is one of the major importers of solar panels because the government has put a lot of effort into the production of clean, green energy to minimise the oil import bill. In order to prevent the outflow of a sizable chunk of foreign currency, it is essential to encourage localization and indigenization of solar panels and related equipment in the country, he said.

Additionally, localizing solar panels will reduce the cost of installation and make them more accessible to the general public. Also, localization will ease the supply chain disruption across the country, he added. ‘’Pakistan must improve the localization of its renewable energy supply chain, according to the Sustainable Development Policy Institute. The supply of solar and wind power remains largely dependent upon imports, i.e. approximately half of solar equipment and almost all major components of wind turbines are imported,” said the Sungreen Electric CEO.

“Moreover, the operations and maintenance of wind farms are also outsourced to international service providers and technical experts that directly impacts the overall cost of the project, increases the likelihood of global supply chain disruptions, raises the impact of import bills on the national economy, and represents a missed opportunity for generation of high-skilled jobs. There is more to be done to ensure that Pakistan has a robust localization action plan with clear objectives,’’ he added.

Ijaz Ali, a research economist at the Centre for Business and Economic Research, informed WealthPK that with the growing demand for clean and green energy, the local manufacturing of solar panels is direly needed in order to curb the ongoing balance of payment crisis in the country.

Moreover, this will draw in local as well as foreign investment into the country and will provide skilled job opportunities for engineers and technicians. Likewise, the government should also make reforms in tax policies to ensure the attainment of foreign direct investment because countries with difficult or cumbersome tax policies for payment of taxes and overburdened taxes have suffered to meet economic goals, he maintained.

According to the International Atomic Energy Agency, the solar PV industry can create 1,300 manufacturing jobs for each gigawatt of production capacity. This sector has the potential to double its number of direct manufacturing jobs to 1 million by 2030. The most job-intensive segments along the PV supply chain are module and cell manufacturing. Over the last decade, however, the use of automation and automated guided vehicles has increased labour productivity, thereby reducing labour intensity.

The Government of Pakistan is preparing a policy document on the manufacture of solar panels and other allied equipment. The strong presence of this allied industry in Pakistan also makes it possible to manufacture glass and aluminium frames for panels in particular.If the industry can meet the local demand for solar panels in accordance with the government's plans, then the expected volumes can lower the costs of manufacturing locally to the point where exports can also be generated.

The government has invited the panel manufacturers, provincial energy departments, local EPC contractors, solution providers, foreign consultants working in this field, research organizations, academia, users, and other relevant organizations.The highlights of the draft policy document shall be shared in a workshop to get inputs from the stakeholders for firming up the requisite recommendations. In order to promote alternative energy, the government has initially decided to solarize government offices and millions of tube wells.

Credit : Independent News Pakistan-WealthPk