Latest news with #RenewablesFirst
South China Morning Post
3 days ago
- Business
- South China Morning Post
Are Chinese solar panels the answer for Global South, or do costs not add up?
The rise of decentralised solar power has prompted a Pakistani think tank to call for China to play a leading role in Pakistan's energy transition, creating a model for other countries in the Global South. However, a Chinese energy scholar has questioned whether its vision is too expensive to be true. Advertisement An increasing flow of cheap Chinese solar panels to the South Asian nation is undercutting demand for power from coal-fired plants that China helped finance and leading to a vicious cycle of stranded assets, according to a report by Renewables First, a think tank based in the Pakistani capital, Islamabad. 'China's solar panels are outcompeting China's power plants,' said Muhammad Basit Ghauri, lead author of the report. 'What we are seeing is an unintentional but profound strategic contradiction. And Pakistan is ground zero for this global experiment in energy disruption.' Pakistan had witnessed a rapid transition to 'distributed' solar power generation on people's rooftops over the past five years, with 39 gigawatts of solar panels imported over that time, mostly from China, the report said, adding that was roughly the equivalent of three-quarters of Pakistan's total installed power generation capacity. With a zero tax rate for solar power imports, Pakistan has emerged as the second-largest destination for Chinese solar panels, behind only Brazil. Advertisement According to data from the Pakistani government's Finance Division, thermal power generation accounted for 59.4 per cent of the country's installed capacity at the end of March last year, followed by hydroelectricity on 25.4 per cent, nuclear on 8.4 per cent and renewables on 6.8 per cent.
Business Recorder
4 days ago
- Business
- Business Recorder
China exports more solar panels to Pakistan than to many G20 nations in 5 years: report
China exported more solar panels to Pakistan than to many G20 nations, with over 16 gigawatts (GW) imported in 2024 alone, a research report stated on Wednesday. The report titled 'Leader of One or Leader of None - China's Choice for Clean over Coal in Pakistan' published by think tank Renewables First said more than 39GW of solar panels, nearly all from China, entered Pakistan in just five years. These solar panels are 'enough to exceed three-quarters of Pakistan's installed national generation capacity', the report said. The report unpacked this transformation, highlighting China's role in the Global South. 'The exit of the United States from the Paris Agreements threw international climate action into a state of frenzy, with the world left speculating who, if anyone, might step in to lead the efforts against climate change,' it said. From crisis to clean energy: Pakistan emerges as top solar market in 2024 China is now a global powerhouse in clean energy manufacturing. It is supplying tools in the form of renewable energy technologies that much of the world is using to fight climate change, according to the report. There has been an energy shift in Pakistan in the form of what the think tank called a 'Solar Rush', which is driven 'not by government declarations or boardroom decisions, but by rooftops, farms, and factory sheds'. The report demystified the 'Solar Rush', dissecting how one of the world's fastest-growing, people-led solar markets materialised not through grand strategy, but through open competition, favorable trade policy, and a flood of low-priced technology. Yet as solar thrived, coal investments began turning into high-risk assets, with the country still hosting billions of dollars in Chinese-financed coal-fired power plants, the report said. As solar slashed grid demand and made self-generation more viable, these legacy plants, once seen as anchors of energy security, have began to sink. 'Utilisation of these power plants fell to as low as 4% in some projects by 2024. Capacity payments ballooned. And electricity from the grid grew more expensive for those still reliant on it,' the report. 'China's solar panels are outcompeting China's power plants,' said Muhammad Basit Ghauri, lead author of the report. 'What we are seeing is an unintentional but profound strategic contradiction. And Pakistan is ground zero for this global experiment in energy disruption.' Pakistan's solar revolution leaves its middle class behind With distributed solar now displacing centralised generation, Pakistan does not just need panels. It needs storage systems, grid upgrades, local manufacturing, financing tools, and a pathway to move away from stranded coal assets, the report said. 'Pakistan may be the first to experience this clash between legacy coal and democratised solar at this scale, but it will not be the last. If China gets this right, it will not just lead to Pakistan's energy transition. It will prove itself as the architect of a new Global South energy paradigm, one that is fast, fair, and truly transformative,' the report envisaged.
Business Recorder
10-05-2025
- Business
- Business Recorder
Pakistan Electricity Review 2025 launched
ISLAMABAD: The Pakistan Electricity Review 2025, recently launched by Renewables First, an Islamabad-based energy think tank — presents a comprehensive analysis of key trends and challenges that shaped Pakistan's power sector during the fiscal year 2024 (FY24). The report identifies FY24 as a transformative year, marked by record imports of solar PV panels from China. This surge in imports spurred rapid growth in rooftop solar installations across the country, both net-metered and behind-the-meter. By March 2025, Pakistan had installed 4.9 GW of net-metered solar capacity, signaling strong momentum in distributed renewable energy. However, a substantial number of behind-the-meter installations remain undocumented, suggesting that the actual installed capacity may be significantly higher. From crisis to clean energy: Pakistan emerges as top solar market in 2024 Pakistan's total installed power generation capacity reached 46.2 GW in FY24, following the addition of three new utility-scale solar plants. This marginally increased the share of utility-scale renewables in the generation mix from 6% to 7%. Despite these additions, the overall contribution of renewable sources (wind, solar, and bagasse) to electricity generation remained stagnant at 5%, well below projected targets and off-track from the 2030 goal of achieving a 30% renewable energy share. Total electricity generation in FY24 stood at 137 TWh. Transmission bottlenecks and overloaded grid infrastructure continued to impede efficient power transfer, particularly from the south to the energy-demanding north. These constraints forced the system operator to reduce dispatch from lower-cost plants, instead relying more heavily on expensive RLNG based generation. As a result, the energy purchase price ballooned to PKR 1.3 trillion, with RLNG generation alone accounting for PKR 568 billion, approximately 51% of the total energy purchases. RLNG-based plants generated 24 TWh during the year, nearly four times higher than the regulator's projections. The report also highlights a decline in electricity sales from the national grid, a continuation of a downward trend for the second consecutive year. Overall sales fell by 3%, with the industrial sector experiencing the sharpest drop. Industrial consumption declined from 31 TWh in FY23 to 28 TWh in FY24, reflecting an 11% year-on-year decrease. This drop underscores both ongoing economic challenges and the sector's gradual shift toward more competitive energy sources. On the financial front, capacity payments surged to PKR 1.9 trillion in FY24, marking a 46% year-on-year increase. This sharp rise is largely linked to the commissioning of new coal and RLNG power plants in FY23, which typically entail high fixed costs, especially during their initial debt repayment periods. When such plants operate below optimal capacity, the cost of unused capacity is still borne by consumers through higher tariffs, further stressing the sector's financial sustainability. Conversely, the decline in electricity generation contributed to a 7% year-on-year reduction in the energy purchase price—offering a modest reprieve amid rising sectoral costs. Despite timely implementation of fuel cost adjustments (FCAs) and quarterly tariff adjustments (QTAs) by Nepra, the sector's circular debt continued to climb. By the end of FY24, it had reached PKR 2.4 trillion, a 3.6% increase over the previous year, adding PKR 83 billion to the existing stock, compared to a 2.6% rise (PKR 58 billion) in FY23. Overall, the Pakistan Electricity Review 2025 offers a sobering assessment of the sector's ongoing structural issues, while also highlighting areas of progress. It serves as both a reality check and a policy prompt for stakeholders navigating the country's complex energy transition. Copyright Business Recorder, 2025
Business Recorder
02-05-2025
- Business
- Business Recorder
CLIP launched to accelerate homegrown climate tech solutions in Pakistan
KARACHI: In the face of escalating climate threats, Renewables First and New Energy Nexus have jointly launched Climate Innovation Pakistan (CLIP), a first-of-its-kind national platform dedicated to accelerating homegrown climate tech solutions. Pakistan ranks high amongst the most vulnerable countries to climate change, despite contributing less than 0.9% to global greenhouse gas emissions. The groundbreaking ceremony at the National Incubation Centre marks a significant milestone in addressing this existential climate challenge through technology driven solutions. The collaboration introduces two key components: a Climate Tech Incubator by Renewables First featuring a tailored curriculum for early-stage climate ventures, and a New Energy Academy established by New Energy Nexus to upskill the solar industry workforce. The discussion underscored the urgent need for specialized incubation programs and targeted capacity-building curricula, supported by a balanced mix of global and local subject matter experts and experienced founders. With the right policy environment in place, Pakistan's climate tech ecosystem stands at a pivotal juncture, presenting a ripe opportunity for disruption, innovation, and long-term impact. Muhammad Bilal Abbasi, General Manager Ignite Funds praised the initiative, noting that 'CLIP, not only adds value to the existing ecosystem but also helps to strengthen Pakistan's economy,' while affirming that Ignite's own Incubator will complement CLIP's work. Stanley Ng, Global Partnerships Director at New Energy Nexus highlighted the organization's global footprint and extensive experience sharing in the South Asian region. He elaborated on the idea of New Energy Academy and how it serves the solar workforce of Pakistan. Aafaq Ali, Vice Chairman of the Pakistan Solar Association, endorsed the collaboration as 'a very timely initiative,' emphasizing the urgent need for improved solar installation quality across the country. Ahtasam Ahmad from Renewables First presented his whitepaper 'Pakistan's Climate Tech Opportunity,' outlining both challenges and untapped potential within the nation's evolving startup ecosystem, while identifying implementation roadmap to scale the nascent vertical. The launch event featured an interesting panel discussion titled 'The Role of Ecosystem Support Organizations (ESOs) in building an investable climate tech pipeline'. All panelists agreed that impact investment offers the most viable path forward for innovation in climate tech in Pakistan, but unlocking it requires stronger collaboration between public and private actors, greater alignment between academia and industry, and tailored support for early-stage startups. Sayyed Ahmad Masood echoed similar views, emphasizing that 'a one-size-fits-all approach is not viable anymore.' He noted that incubators are now increasingly shifting toward customized support models, where programs are tailored to the specific needs, stages, and contexts of individual founders and startups. Shehryar Hyderi commented that 'Pakistan is still experiencing a funding drought,' but he anticipated that the post 2025 period could usher in a period of micro-recovery for the startup space with climate tech being a promising sector. Merai Syed emphasized that the support ecosystem has not kept pace with the sector's needs, pointing out a critical gap between available resources and the actual requirements of climate tech ventures. She stressed that academic institutions must undergo a mindset shift, embracing change, adaptation, and greater alignment with real-world climate challenges to effectively nurture innovation. On gender inclusion, Zainab Saeed highlighted that despite structural challenges, the climate tech space holds immense untapped potential for women-led ventures. She stressed that unlocking this potential will require ecosystem support organizations (ESOs) to play a more intentional role in de-risking investments for female founders. This includes not only providing tailored mentorship and capital access, but also addressing the deeper systemic barriers, such as gendered perceptions of risk and limited visibility, that continue to sideline women in tech-driven innovation spaces. Copyright Business Recorder, 2025
Business Recorder
02-05-2025
- Business
- Business Recorder
CLIP launched to accelerate homegrown climate tech solutions
KARACHI: In the face of escalating climate threats, Renewables First and New Energy Nexus have jointly launched Climate Innovation Pakistan (CLIP), a first-of-its-kind national platform dedicated to accelerating homegrown climate tech solutions. Pakistan ranks high amongst the most vulnerable countries to climate change, despite contributing less than 0.9% to global greenhouse gas emissions. The groundbreaking ceremony at the National Incubation Centre marks a significant milestone in addressing this existential climate challenge through technology driven solutions. The collaboration introduces two key components: a Climate Tech Incubator by Renewables First featuring a tailored curriculum for early-stage climate ventures, and a New Energy Academy established by New Energy Nexus to upskill the solar industry workforce. The discussion underscored the urgent need for specialized incubation programs and targeted capacity-building curricula, supported by a balanced mix of global and local subject matter experts and experienced founders. With the right policy environment in place, Pakistan's climate tech ecosystem stands at a pivotal juncture, presenting a ripe opportunity for disruption, innovation, and long-term impact. Muhammad Bilal Abbasi, General Manager Ignite Funds praised the initiative, noting that 'CLIP, not only adds value to the existing ecosystem but also helps to strengthen Pakistan's economy,' while affirming that Ignite's own Incubator will complement CLIP's work. Stanley Ng, Global Partnerships Director at New Energy Nexus highlighted the organization's global footprint and extensive experience sharing in the South Asian region. He elaborated on the idea of New Energy Academy and how it serves the solar workforce of Pakistan. Aafaq Ali, Vice Chairman of the Pakistan Solar Association, endorsed the collaboration as 'a very timely initiative,' emphasizing the urgent need for improved solar installation quality across the country. Ahtasam Ahmad from Renewables First presented his whitepaper 'Pakistan's Climate Tech Opportunity,' outlining both challenges and untapped potential within the nation's evolving startup ecosystem, while identifying implementation roadmap to scale the nascent vertical. The launch event featured an interesting panel discussion titled 'The Role of Ecosystem Support Organizations (ESOs) in building an investable climate tech pipeline'. All panelists agreed that impact investment offers the most viable path forward for innovation in climate tech in Pakistan, but unlocking it requires stronger collaboration between public and private actors, greater alignment between academia and industry, and tailored support for early-stage startups. Sayyed Ahmad Masood echoed similar views, emphasizing that 'a one-size-fits-all approach is not viable anymore.' He noted that incubators are now increasingly shifting toward customized support models, where programs are tailored to the specific needs, stages, and contexts of individual founders and startups. Shehryar Hyderi commented that 'Pakistan is still experiencing a funding drought,' but he anticipated that the post 2025 period could usher in a period of micro-recovery for the startup space with climate tech being a promising sector. Merai Syed emphasized that the support ecosystem has not kept pace with the sector's needs, pointing out a critical gap between available resources and the actual requirements of climate tech ventures. She stressed that academic institutions must undergo a mindset shift, embracing change, adaptation, and greater alignment with real-world climate challenges to effectively nurture innovation. On gender inclusion, Zainab Saeed highlighted that despite structural challenges, the climate tech space holds immense untapped potential for women-led ventures. She stressed that unlocking this potential will require ecosystem support organizations (ESOs) to play a more intentional role in de-risking investments for female founders. This includes not only providing tailored mentorship and capital access, but also addressing the deeper systemic barriers, such as gendered perceptions of risk and limited visibility, that continue to sideline women in tech-driven innovation spaces. Copyright Business Recorder, 2025
