Sunrise in Pakistan as the Country Delves into Solar PV

Pakistan has joined the list of countries that are exploring solar power as a means to bridge critical energy generation shortfalls.  The tariff that has been announced is priced to be attractive and interest is already high.  Of the two provinces currently ready to implement the program, Punjab is in the north, and Sindh in in the south.  The prices on a levelized basis for these regions are:

Size of Project (in MW)

North Region Price in US cents per kWh

South Region Price in US cents per kWh

1-20

15.0270

14.4096

20-50

14.8953

14.2825

50-100

14.7588

14.1516

These are US dollar denominated tariffs for a 25-year PPA.  Regulators state that the tariff is designed to give sponsors a 17 percent return.  Each of the above tariff rates steps down at year 10, which is when the tariff assumes debt will be repaid.

Electricity generators in Pakistan are also not subject to taxation and the import of equipment for construction benefits from exemptions from duties.

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