The global energy switch is finding routes and coming to Asia despite the current global economic closure due to the COVID-19 pandemic, as per the study by the Institute of Energy Economics and Financial Analysis (IEEFA). It added that while South and Southeast Asia have been renewables laggards, Asia is nevertheless on the cusp of a dramatic pivot. Recent developments across Pakistan, India, China, Japan, South Korea, Vietnam and Taiwan highlight the potential for renewable energy companies. A report, “Pakistan’s Power Future: Renewable Energy Provides a More Diverse, Secure and Cost-Effective Alternative,” produced by the Institute for Energy Economics and Financial Analysis (IEEFA), examines the current energy system in Pakistan while suggesting an alternative energy model for 2030. In Pakistan, Reon Energy has garnered great attention after working with top-notch clients who were seeking solar energy solutions. One of the recent project is Dada Diary. Pakistan’s dairy industry in the recent times has faced increasing energy tariffs as well as prolonged power outages.
On average, a dairy farm’s energy load is around 500-600 KW in the summer season – a major chunk of which is consumed by the cooling fans. In winters, the energy load of dairy farms goes down to around 200-300 kW. In case of a power disruption, the genset kicks in to keep the farm running.
To cater the businesses financial needs of the client, Reon Energy also offers flexible financing options including Ownership and Leasing to make solar accessible to industrial and commercial consumers alike. Dada Dairies partnered with Reon in 2018 for a 600kW solar plant that would offset around 812,000 KWH/Annum of its total energy requirement. The pilot project proved successful and won Reon a successive project of 400 kW on the same site. The project uses net-metering to avail utility bill credits in case of excess.
Dada opted for SBP’s Green Financing scheme to fund their Solar PV investment. The best part about this scheme is that the borrowing is available at a fixed rate instead of being indexed against interbank offer rate.
The 1MW Solar PV Plant allowed Dada Dairies to hedge their energy rates for the next 25 years which otherwise are at the mercy of rising oil and gas prices and the US dollar.
The study said that the transition is being driven by renewable energy technology that disrupts incumbent industry business models, much like the rise of the mobile phone and the internet.
The key aspect is to understand that the technology disruption is fundamentally reshaping the global energy landscape. A key impetus is the dramatic, ongoing deflation in the cost of solar energy and battery storage. Both have seen costs drop 80 to 90 per cent over the last decade and we expect both to halve again in the coming decade.