Solar Energy can now be an affordable and practical contributor to our country’s energy needs. Reduced capital expense has made it really attractive for industrial and corporate users alike. It helps reduce long term operating costs, provides a reasonably predictable supply of electricity and is a complete hedge against market fuel price volatility. It further helps companies accomplish their carbon targets – something that is very important in the competitive global environment. Inam ur Rahman, CEO Reon Energy Limited states; “The increasing viability of solar power is soon expected to make it the most attractive energy solution for businesses. Effective policies should be in place to facilitate and fund such renewable energy investments.” Reon Energy Limited is the renewable energy division of Dawood Hercules Limited – the single largest private sector energy provider in Pakistan.
As countries and economies move towards adopting renewable energy, the regulatory environment and the availability of funds become the two largest challenges. One only has to follow the successful models adopted in developed, as well as developing countries, to see how renewables, especially Solar can be jump-started in Pakistan. We now have well documented examples of how this freely available natural resource can be turned into a major driver for the economy. The one thing that Pakistan needs at this juncture are companies with strong service backup facilities helping the sector grow rapidly. No one wants to spend a large amount of money and be worried that the solar company will not be there next year.
Corporate commitments have helped drive renewable energy investments in Pakistan. Various companies have risen over competitive capital allocations, and short term inconsistent policies to secure funding for renewable energy projects. Solar Energy Project at Wah Nobel Limited is a remarkable example of our industrial sector’s commitment to strengthen renewable energy resources. Various renewable energy companies have emerged over the last decade, that are now playing a vital role in providing reliable and cost effective solutions to the buyers.
Financial institutions and international development organizations must play a significant role, to help the renewable energy industry advance beyond its nascent stage in Pakistan. For sustainable long term economic growth, it is imperative that policy makers enable programs that support the energy demand of large scale businesses. It is also necessary for corporations to set time-bound renewable energy targets for creating self-sustaining ventures. Such interventions at various levels shall surely help the country evade the looming energy crisis.