Abstract:
The small and medium enterprise sector plays a key role in the socio-economic and industrial development of a country. The global increase in fuel prices and recurrent energy crises in the country are major hurdles to the economic development of Pakistan. The poor situation of energy security in the country has pushed many industries on the verge of cessation especially the manufacturing SME sector, struggling with limited resources and technical expertise to compete with local and international markets. To deal with periodic power outages, SME business owners usually rely on alternative energy sources such as uninterruptible power supplies (UPS) and backup generators. Backup generators are pollution pervasive, noisy, and run-on fossil fuels which further increase the per-unit cost of electricity. UPS on the other hand is a major source of harmonics which consequently gives rise to power quality issues. On the contrary, grid-tied solar PV systems are not only economical and sustainable but support the power grid as well resulting in the mitigation of carbon emissions. The key objective of this study is to assess the techno-economic feasibility of grid-connected solar photovoltaic power plants for chosen SME sectors in four different districts of the Punjab province, Pakistan. Based on the technical, financial, and environmental indicators, a detailed techno-economic, sensitivity, and GHG emission analysis is conducted using RETScreen Expert software. This research concludes that designed solar PV projects for all four locations are technically, financially, and environmentally viable, however, Sargodha as compared to other sites is the most feasible location with the highest capacity factor of 17.8%, highest IRR of 14.9%, lowest PBP 7.7 years, and least LCOE 8.5 ¢/kWh. This research presents a solar energy roadmap for researchers, policy makers, and investors to take initiative as a coalition force and address common challenges of soaring energy prices, power shortage, and climate change by increasing the renewable share in the total energy mix of the country.
