SOLAR POWER PURCHASE AGREEMENT: CHALLENGES AND INNOVATIONS.pptx

Solar PPA model

1. SOLAR POWER PURCHASE AGREEMENT: CHALLENGES AND INNOVATIONS Submitted By: Fida Muhammad (15257) Adnan Ahmed Kidwai (15274) Saad munir aadmani (15277) Classification | Internal Classification | Internal

2. Introduction Renewable energy (RE) presents exciting and unique problems for regulators and policymakers in the energy industry. Renewable energy is not new to the energy mix, but its significance in the larger national and global energy supply is a comparatively recent development. Consumers, governments, and countries are still getting used to this recent shift in the energy landscape. Since it makes it possible to meet energy demands in a sustainable way, RE is becoming a growing trend. Pakistan is a nation in development. The nation requires a tremendous quantity of energy to maintain its rapid expansion, big population, and industrialization. ( Fatai et al, 2004 and Muneer et al, 2006). Pakistan's energy production is mostly reliant on fossil fuels. Owing to the nation's large population and ongoing industrialization, these sources are unable to meet the nation's present energy demands. In the meantime, they are not economically feasible to electrify rural locations and have negative effects on the environment. Finding other energy sources is therefore necessary. When it comes to cost, lifespan, and upkeep, solar energy is Pakistan's finest renewable energy choice. Through semi-structured interviews with specialists in the field, major obstacles have been discovered throughout the complete range of solar energy. (Irfan et al, 2019). Classification | Internal Classification | Internal

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4. A power purchase agreement (PPA) is a formal contract that specifies a power ratio and duration of use between a power producer and a power consumer. Both parties determine the terms and circumstances of the agreement, which may involve additional parties An example of a power purchase agreement (PPA) for a possible coal-generating plant and this transmission firm is The National Transmission and Dispatch Company Limited from Pakistan. (Fernandez et al, 2013). The last ten years have seen a significant shift in the renewable energy (RE) sector due to the sharp drop in the cost of solar and wind energy as well as the growing demand for RE. The financing options available to the RE sector have changed along with it. In many nations around the world, power purchase agreements (PPAs) in their different forms are one of the most popular financing choices. PPAs differ from administrative policy mechanisms for RE. Solar Power Purchase Agreement (PPA) is the new phenomenon and a developing market for Pakistan. K-Solar (Pvt) Limited is a subsidiary of K-Electric (Pvt) Limited which started the work on PPAs before there was monopolistic electricity concept. Classification | Internal Classification | Internal

5. The Solar PPAs market is expected to face the regulatory obligations along with that contract terms as this would be 10–25-year contract amongst both parties. The major challenges would be to make both parties agree to the terms of the agreement given that the knowledge about the system is provided. The technological revolution is fast, given the amount of research is being put into the development of solar industry which may impact the long-term contract in next 10 years. According to the importance of this emerging energy market in the landscape of Pakistan and the challenges stated above, this requires a comparative analysis in terms of finances involved in establishing this technological upscale in Pakistan, environmental impact, job creation, and more sustainable solution to be provided for all the stakeholders. Classification | Internal Classification | Internal

6. Problem Statement In the context of Solar Power Purchase Agreements (PPAs) in Pakistan, there are many challenges and multiple technological revolution that need thorough examination. The volatile energy market of Pakistan may face hurdles in smooth implementation of Solar PPAs due to regulatory bodies, financial understanding, and other institutional limitations. The general practices are given below; however, the focus of this research will be on Solar PPA. IPPs – Independent power producer EPC – Engineering Procurement Construction PPA - Power purchase agreement Classification | Internal Classification | Internal

7. Research Questions What is the Solar PPAs business model? How does the PPA model work? What are the benefits of Solar PPAs for customers, companies, and countries? How PPAs would be more feasible for large industries? Why do people need to move towards this model? What are the major challenges? Which companies in Pakistan are already working on Solar PPA model? Classification | Internal Classification | Internal

8. Research Objectives Comprehensively investigate the Solar Power Purchase Agreement (PPAs) model and compare it to regional similar model. To find the best appropriate model for the local Market (Industries) as the major expense for industries is the electricity bill. To analyze the major challenges and technological revolution in the Solar energy sector. Classification | Internal Classification | Internal

9. THANKYOU! Classification | Internal Classification | Internal