Electricity Shortfall Reduction Potential through incorporation of Solar Feed in Tariff Policy in Pakistan /

Abstract

Energy is vital for sustainable development of a country. It is linked to industrial production, agricultural growth, health, education, access to water, population, and quality of life etc. In the last decade an exceptional surge in demand side of electricity in Pakistan has been seen but very little has been done to increase the supply proportionately. Addressing electricity shortfall through proven renewable energy technologies as solar photovoltaics can reduce the demand and supply gap significantly. In an initial phase, it has been proposed to deploy solar PV equal to commercial electricity demand in Pakistan using Feed in Tariff policy. This test-bed initiative would surge public and private investments in renewable energy sector and generate employment opportunities apart from reducing the electricity shortfall and CO2 emissions. In this regard most feasible location for solar PV installation has been evaluated, based upon annual solar yield of same nameplate capacity (1 MW) solar PV generator in different regions of the country and financial analysis has been conducted in terms of simple payback period, discounted payback period, net present value and internal rate of return. Feed in Tariff policy designs and negative outflows of overly incentivized policy mechanisms have been studied and recommendations have been provided for effective deployment of the solar Feed in Tariff policy in Pakistan.