Solar Panel And Allied Equipment Manufacturing Policy
The Engineering Development Board (EDB) is all set to submit
its policy document on Solar Panels and Allied Equipment’s
Manufacturing to the Government by the end of this month. EDB
initiated working on this policy formulation some time back under
directions from its parent ministry, the Ministry of Industries &
Production and the EDB’s Board of Management. Over the last few
months, extensive consultations have been held with stake-holders
which include local manufacturers of solar panels, provincial energy
departments, research organizations, academia, users, and other
relevant organizations & departments in the federal and provincial
governments. The draft policy was presented in the 51st Board of
Management meeting of EDB held in June 2022 and EDB was
advised to hold a consultative workshop on the matter before
submission of the policy document to the government. The Policy is
expected to dovetail with the national solar energy policy being
prepared by the Ministry of Power and the Renewable Energy Task
Force under the leadership of the Prime Minister of Pakistan.
Today , Pakistan, is facing serious energy shortages with record
prices that had directly and indirectly affected all sectors of the
economy .The country’s electricity demand has reached almost
29,000 MW total whereas generation is about 22,000 MW creating a
considerable gap between generation and demand, resulting in load
shedding. With the present Government’s focus on setting solar set
ups it becomes imperative to promote localization & indigenization
of solar panels and its allied equipment in the country to save huge
out flow of foreign exchange.
The country’s power sector has a structural issue as its energy
generation mix is 40% based on indigenous resources while 60%
comprises imported oil fuel. The government has planned to increase
local share to 90% by 2030, out of which the targets set for
renewable energy is 20% to 30% which is currently around only
1.4% of the total installed capacity. Roof top solar system in
particular needs to be encouraged and incentivized as it is the
cheapest source of electric generation available today. In anticipation
of the upcoming government policies for incentivizing renewable,
especially solar energy, local industry has already made huge
investment for building local manufacturing capability and capacity
for solar panels and allied equipment whereas several other local as
well as foreign investors are waiting for the appropriate policies to
come out before they invest on the ground. Local manufacturing of
solar panels and allied equipment not only saves valuable foreign
exchange through localization, but also brings in investment and
provides skilled job opportunities for engineers and technicians.
The industry is currently using imported raw materials,
however in the coming years once local volumes build up, the
industry is planning to use local raw materials to further bring costs
down and decrease the country’s import bill. Glass and Aluminum
frame for the Panels in particular can easily be manufactured in
Pakistan due to the strong presence of this allied industry within the
country. If the industry is able to meet local demand for solar panels
in line with the government’s plans, the expected volumes can bring
local manufacturing costs down to a level where exports can also be
generated from the sector.
EDB has invited the panel manufacturers, provincial energy
departments, local EPC contractors, solution providers, foreign
consultants working in this field, research organizations, Academia,
users, and other relevant organizations / departments in the
federation. The highlights of the draft policy document shall be
shared in the workshop to get inputs from the stakeholders for
firming up the requisite recommendations.