Can Pakistan generate electricity through solar power?

Pakistan has immense potential for generating electricity through solar power. Almost all parts of the South Asian country are dry and hot, barring a few areas in the northwest. However, the country currently only produces a meager 1.16% of its electricity through solar power and 64% with fossil fuels.

Why is solar energy important in Pakistan?

Nature has blessed Pakistan with enormous renewable energy potential which can be utilized for power generation and to meet energy needs of the country. Amongst RE resources, Solar energy resource is the only one that is available all across the country.

Is solar energy a low cost option in Pakistan?

This is also evident from the reduction in tariffs of solar power in Pakistan over the years and now Indicative Generation Capacity Expansion Plan (IGCEP) also contemplates an addition of substantial quantum through Solar PV energy generation as the least cost option.

What are the major developments in the production of solar energy in Pakistan?

Another major development in terms of the production of solar energy in Pakistan is that the government has decided to install solar panels that will float on the waters of some of the major canals and dams in Pakistan to bring up the level of the overall contribution of alternative energy resources to country’s energy mix.

What does the GOP want to do with solar power?

In order to ensure the GOP’s policy objectives of energy security, affordability of electricity, environmental protection, and sustainable development, the GOP envisions to deploy solar power on a fast track basis to eventually complement and/or substitute the expensive imported fossil fuels currently being used for power generation.

What are the tax implications of a solar power project?

Profits and gains derived from sale of electricity by an IPP from an electric power generation project shall be subject to 15% income tax for the term of the project. In addition to the GOP Guarantee, the payment under the EPA will be ensured on 60th day after invoice through bank debit from a dedicated solar account to be maintained by CPPA.