Currently, Pakistan relies on expensive fossil fuels. This cost has skyrocketed in recent months. Had the country taken a more aggressive stance towards renewable energy in the past, it could be saving money right now. A capacity payment mechanism might also have helped. This article aims to address some of these questions.
Public lands identification
The Sindh government has identified sections of public lands for solar parks and is working with developers to get them. The government is facilitating developers to secure public land without any hassle. Public lands identification does not require a national newspaper advertisement. Public lands identification is a crucial first step in the installation of solar projects.
After identifying public lands, developers should approach the provincial government for land allotment. There are two ways to secure the required land: direct negotiations with the landowner or through a provincial government supported process. It will take anywhere from 30 to 60 days to secure land in Pakistan.
The first step in the process is to register the land with the registrar. This process is relatively easy in some provinces but can be difficult in others. The cost of registration depends on the value of the land.
FIT Regime agreements and documents
The FIT Regime agreements and documents for solar projects in Pakistan are structured according to a certain structure. In the first step, the developer must enter into project agreements with the relevant government entities. The principal project agreements are an Implementation Agreement with the Government of Pakistan (NPA) and an Energy Purchase Agreement (EPA). These documents form the basis of the FIT Regime in Pakistan.
The documents are reviewed by a scrutiny committee and recommended by the Sindh Government. Then, the execution of the lease deed takes place. This can take place even before financial close. The process for FIT project development in Pakistan typically takes 30-60 days. However, the timeframe can be a little longer if the land has to be identified first.
To begin, developers must obtain an LOI from the AEDB and provincial agencies. The Sindh government grants first choice to developers. The government also supports developers in acquiring public land.
Landowner direct negotiations or provincial government supported process
In Pakistan, land is available in many forms. Private owners can negotiate directly with landowners or developers can apply to use the land of a public entity. There are various processes that solar developers can follow to secure land for solar projects. The first step is to identify the land to be used for the solar project. This process can be challenging, but it can be done by beginning the process early. Developers can secure land for their solar projects in one of two ways - through landowner direct negotiations or through a provincial government supported process.
First, developers must identify public lands and apply for allotments from the provincial government. This process will take a few months. The process is outlined in the 2006 RE Policy, which includes requirements for renewable power projects. The application process typically takes 30-60 days, though the process may be delayed by the time it takes to identify the land. After the LOI is processed by the AEDB, the project developer must wait 18 months for the land to be available.
Defence Housing Authority penalizes solar installations on rooftops
The Defence Housing Authority is penalizing residents who have installed solar panels on their rooftops. The notices are based on the fact that these rooftop installations are in violation of construction laws. The DHA also warns residents that they can face refurbishment charges amounting to hundreds of thousands of rupees.
According to Kashif Fazal, the building manager at DHA, residents have to undergo a written approval process to install solar panels. There are several documents to be submitted, including an application for permission. In some cases, the roof of a home cannot support the weight of solar panels, and there has been a case in DHA recently where a solar panel structure collapsed on a car. Since then, the DHA has sent warning letters to residents and imposed fines on those who violate the building control regulations.
The DHA also wants residents to ensure that the panels are placed safely. A structural engineer is responsible for determining the placement of panels. This is because the DHA is responsible for the safety of all residents. If a roof collapsed on a home, the residents would blame the DHA. But luckily, there is a clause in the DHA laws that addresses the safety issue.
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