Alternative energy only solution to crisis

[Hyde]

Alternative energy only solution to crisis ​

By Shahid Iqbal
Thursday, 20 May, 2010


The government has accepted the proposal of creating a Renewable Energy Development Fund for the promotion of the alternative energy in Pakistan, which can actually invest and be a partner to the private sector. — File Photo

KARACHI: Energy crisis could be overcome with the help of alternative energy resources already available in the country. This was the focus of the energy exhibition began here on Wednesday.

The 8th international exhibition for the energy industry “POGEE-2010” at the 6th International Fire and Security Exhibition and Conference began with hopes, opportunities and potential for the growth in this particular sector.

For the first time special emphasis was given to alternative energy in the exhibition projecting the potential for the growth of solar energy and wind energy.

“Pakistan ignored its energy sector in the recent past and as a result we paid about $12 billion for energy imports in 2008 and in 2009, our oil import bill increased to $13 billion but the country continued to experience energy shortages,” said chief executive officer (CEO) Alternative Energy Development Board (AEDB) Arif Alauddin, while talking to media at the inauguration of the exhibition.

“Only 63 per cent Pakistanis have grid connected electricity, and 80 per cent of the population is without piped natural gas forcing these deprived rural poor to pay 3-5 times more for their energy supplies compared to those of us living in the urban centres,” he said.

The AEDB is signing an agreement with the telecom companies, which will help energise more than 600 telecommunication towers through renewable energy enabling the companies to provide uninterrupted service to people in many parts of the country.

The government has agreed to offer preferential rate of return to all alternative energy investments — and the new rate is expected to be 17 per cent ROE. Further, Nepra is expected to announce incentive of up to 1 per cent ROE on the projects that come on early.

Additionally, the government is working with the Asian Development Bank for counter guarantees to the guarantors of the energy purchaser in order to bring the comfort to the lender, reduce the perceived country risk and lower the project cost.

The AEDB has also developed a programme with key stakeholders for accelerated deployment of 400,000 solar water heaters in the country by 2015.

These solar water heaters would be provided at a concessional rate.

The government has accepted the proposal of creating a Renewable Energy Development Fund for the promotion of the alternative energy in Pakistan, which can actually invest and be a partner to the private sector.

Special proposals for the 2010 budget suggesting subsidies, fiscal and financial incentives for off-grid products are under active consideration.

A number of solar energy products were displayed in the exhibition but the prices were, too, high for a common man. For example a lamp may cost up to Rs4,500 to 5,500 for 5 to 10 watt light. A roadside light could cost up to Rs70,000. A house may use two fans and two bulbs of energy savers at a cost of Rs125,000 for four to five hours during the day light. For storage energy batteries are used that will add more cost to any small project.

However, many experts in the exhibition viewed the situation differently and said that once the use of solar energy products will be on large scale the price may fall even less than 50 per cent of the current level.

The energy experts said the lack of awareness is the biggest hindrance in the progress of alternative energy resources, while the government itself did not take interest to promote it as a real alternative solution to the deepening energy crisis.