By Muhammad Mudassar

ISLAMABAD, July 22: The Engineering Development Board (EDB) is all set to submit its policy document on solar panels and allied equipment manufacturing to the government in August 2022.

The solar policy will help to improve energy supply in Pakistan. Pakistan has a huge potential to generate solar and wind power. According to the World Bank, utilizing just 0.071% of the country’s area for solar photovoltaic (solar PV) power generation would meet Pakistan’s current electricity demand. Wind is also an abundant source of power generation. Pakistan has several well-known wind corridors with average wind speeds of 7.87m/s in 10% of its windiest areas.

Currently, Pakistan is importing solar raw materials. However, under this policy, once local volumes rise up in the coming years, more local raw materials will be used to further bring down costs and decrease the country’s import bill. The draft policy was presented in the 51st Board of Management meeting of the EDB held in June and the Board was advised to hold a consultative workshop on the matter before submitting the policy document to the government.

Pakistan, which imports a substantial quantity of fuel, is currently facing a serious energy shortage as a result of a significant increase in the international prices of energy products. Around 60% of energy is generated through imported fuel. The government has planned to increase local share to 90% by 2030.

The contribution of hydel in electricity generation has dropped from 27.8% in July-April FY21 to 23.7% in July-April FY22. The share of nuclear has increased from 7.2% in July-April FY21 to 12.35% in the corresponding period of FY22. The contribution of renewable energy in the electricity generation has increased from 2.4% during July-April FY21 to 3.02% in the first 10 months of FY22.

Solar energy not only improves energy generation, but also reduces import bill, and contributes to environment positively. Solar energy has one of the cheapest per unit costs of electricity. Solar energy is good for industries too. As a result of higher prices of energy products, industries also have to endure high input costs.

According to Dr Abedullah, Chief of Research, Pakistan Institute of Development Economics (PIDE) Islamabad, improving the quality of Pakistan’s power supply and strengthening the energy sector requires investment and operational changes. It can only be possible by engaging foreign investors and slowly moving towards renewable energy. The World Bank has estimated that more than 10,000MW thermal capacity is going to retire and will be replaced with renewable energy by 2032.

The government should also promote renewable energy sources like biogas and wind. These are cost-effective and environment-friendly energy sources.

Credits: INP-WealthPk