Author: reon

KARACHI:Following the change in technology dynamics, the cellular business sector has come up with a new concept for IT towers. So far more than 10 companies have acquired licences for tower business, among which Edotco and Enfrashare are active players.

Modern inventions like Facebook, Twitter and WhatsApp have completely changed the way of communications for public. However, they have created great challenges for mobile network operators as people now mainly use these mobile applications for most of their communications, making the traditional voice and text services obsolete.

As a result, the mobile network operators (MNOs) are not making as much revenue from voice and text services as they made earlier and in future they might completely lose revenue from the two services.

With the changing dynamics, the cellular companies have shifted their focus more towards wireless internet – mobile data services – as it is needed for every new digital app that has become a necessity now, like ride-hailing apps, communication apps, food service apps and e-commerce marketplace.

All these software, which have made lives easier, need data to be connected, which is why mobile network companies have reformed their business models. “Now, cellular mobile companies are happy to call themselves digital companies rather than mobile network operators,” said Salman Saeed Khalili, Head of Telco at Reon Energy.

Malaysia’s company to invest $100m annually in Pakistan

There was a time, around the end of first decade of the 21st century, when mobile operators competed with each other on the basis of how bigger their network was, said Edotco Pakistan Country Managing Director and CEO Arif Hussain. No company, he continued, wanted to share their towers as that meant losing a competitive edge.

However, each company now has a network of towers in thousands, which is increasing with the growing number of users and new technologies. But that is becoming a burden on them.

Marketing campaigns of Jazz used to revolve around its largest network in the country, which made talking with relatives in far-flung areas more convenient. With the changing scenario, the same company had to deal with Edotco, a tower operating company, headquartered in Malaysia, with its operations spread in Bangladesh, Cambodia, Sri Lanka, Myanmar and Pakistan.

The Malaysian company had to scrap a $940-million deal with Jazz, involving the acquisition of 13,000 cellular towers as approval of the deal was delayed by the authorities.

The company has installed 1,400 towers in an effort to strike a deal with Jazz again or any other MNO for breakthrough. Axiata Group, the parent company of Edotco, is also under the process of merging its operations with Telenor, South Asia.

This transformation has compelled the MNOs to think out of the box and share passive investment in the towers. Pakistan, a country of 208 million people, has achieved cellular subscriptions from 161 million or 76% of the population. The country has 70 million broadband subscribers, including 68 million 3G/4G subscribers.

With the increased number of users and emergence of new technologies like 3G, 4G and most probably 5G, the country needs more and more towers. Currently, the country has 35,000 towers, which are expected to double by 2027.

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The subscriber density has reached 5,000 users per tower, which is more than double the standard density.

“In developed countries, 2,000 users are connected to every tower,” said Arif Hussain. “This means the country needs more towers in coming years and MNOs can see a significant reduction in capital expenditure and annual operating expenses by outsourcing towers to us,” he said.

MNOs are now outsourcing their towers. In a tower, passive investment, which does not help a mobile network company in generating direct revenue, entails structure of the tower, battery, generator, solar power panel and the guard watching.

Companies like Edotco would arrange these and in return MNOs will pay rent for installing their antenna to disseminate their signals, which then becomes an active investment.

KARACHI: ‘Distributed’ power generation, a befitting response to infrastructure deficit and high energy cost, is gaining popularity in Pakistan’s industrial and commercial setups as it entails production near the consumers and is expected to account for 25 percent of energy mix within the next decade, a senior industry official said.

“The cost of solar panels is declining and production efficiency is increasing rapidly,” Mujtaba Khan, chief executive of Reon Energy said. “We estimate the renewable power generation to account for around 25 percent of the country’s power consumption by 2030.”

Consumers are being attracted towards the low-cost power resources. Commercial as well as industrial units are opting for solar-based power generation, which is now the cheapest source of energy and the cost of such production unit has gone below the gas-based power plants. “A number of textile millers have approached us and we are installing solar power generation systems of over one megawatt capacity,” Khan said.

Reon’s revenues grew multiple times in the last couple of years as solar-based distributed generation is gaining wide-scale acceptance.

Distributed generation is cheaper than conventional, centralised generation because it avoids costs of building transmission lines and the infrastructure needed to supply electricity to homes and businesses. Electricity generation, through renewable resources, accounts for less than five percent in Pakistan, which is one of the lowest in the world.

The International Renewable Energy Agency (Irena) said Pakistan could increase its energy security, improve energy access, and spur social and economic development with renewable energy. Irena, in a latest report, recommended the government to devise a comprehensive distributed power generation plan.

Khan said State Bank of Pakistan, under green financing scheme, allocated six billion rupees to finance renewable energy generation at a flat rate of six percent. “The distributed generation needs an impetus in the form of a properly implemented net-metering policy as presently developing a net-metering facility involves lengthy and complicated procedure,” he added.

Ministry of Energy (Power Division) has already initiated consultative sessions to deliberate upon applicable tariff for net energy delivered by the distributed generations to the grid under net-metering system and whether or not there should be any cap on the capacity to be installed by the distributed generators.

The global distributed generation market is projected to reach to $103.38 billion by 2022 from $60.04 billion in 2017, growing at a compound annual growth rate of 11.48 percent. Growing demand for electric power worldwide and decreasing cost of solar technology are driving the market for distributed generation across the world. Moreover, the commercial segment is expected to hold the largest share of the distributed generation market within next five years.

Inam ur Rahman CEO, Dawood Hercules Co. Ltd. Some amazing stuff has happened in the world of renewable energy. Almost a month ago, Dubai Electricity and Water Authority – DEWA – was able to secure a solar tariff of 2.99 Us Cents per Kilowatt hour of electricity from a private developer for a 800MW Solar project. This was not only unprecedented but remarkably came just a year after the earlier project at 5.85 cents was deemed unfeasible by most market players. In an interesting twist, all major players bid less than 5 cents in this phase – and all of this is unsubsidized. What is happening? Is everyone going crazy? This is the cheapest energy available anywhere in the world. Even DEWA has a Coal contract at a much higher price. The next step, I guess is that Electricity will become free.

Samir Ahmad
Manager- New Business Ventures

Pakistan’s total generation capacity in 2015 was between 23000 MW to 24000 MW, out of which 66 % was thermal based, 30% was hydroelectric based, 3% was nuclear based and nearly 1% was both wind and solar energy. On an average 3000 to 5000 MW of energy shortfall was experienced by Pakistan in 2015. According to 2014 statistics, a considerable proportion of this power generation was used in powering the commercial and industrial sector of Pakistan, which is our economy lifeline. As a nation, the extent to which our economy depends on fossil fuel based thermal generation marginalizes our energy security at a global level.

Pakistan is one of the most blessed countries when it comes to solar energy availability throughout the year. The solar energy potential ranges from 1500 to 2200 Kwh/m2/ year and varies based on geography, making it the 6th luckiest country in terms of solar potential. Generally speaking the solar energy availability increases from north to south, with the south western part exceeding well beyond the 2200 Kwh/m2/year mark. Germany on the other hand has a solar potential ranging from 1100 to 1300 Kwh/m2/day however already has 39 GWp of solar PV installed mainly due to attractive feed in tariffs.
Pakistan’s commercial & industrial sector (C&I) primarily depends on grid power with diesel generators available for standby power to maintain uninterrupted operations. The price of energy (Kwh) is one of the highest in the region coupled with low reliability makes energy cost for businesses in Pakistan one of the highest operational cost. With highly competitive local and global markets it is becoming more and more difficult for businesses to survive. Finding a solution to this is now imperative at many levels.

What is the significance of a one-degree Celsius rise or fall in temperature?

It is not a minor difference. It is the difference between ice and water; between a healthy body and a feverish one. The human body’s normal core temperature is 37-38°C; if it heats up to 39-40°C, muscles slow down and a fever burns. If a single-degree rise in temperature is this significant to a human body, consider the consequences to our planet Earth if the global temperature were to increase by four degrees by 2100, knowing that an average increase of one degree across its entire surface means huge changes in climatic extremes.

Resulting changes in weather patterns may result in heavy rainstorms and severe flooding or drought, disrupting living patterns, agriculture, and economies. Security experts and scientists such as UK Chief Scientific Advisor David King suggest that climate change poses a greater security threat than terrorism. It’s the hardest problem humanity has ever faced; the most difficult and dangerous problem humans have ever created. It is predicted that if greenhouse gases continue to be released into the atmosphere at the current rate, the average temperature around the world could rise by about 4 to 12°C by the end of this century. We have a planetary emergency. We must understand how to act quickly and decisively to preserve our planet and our lives.

Pakistan has been struggling for decades to manage crises from infrastructure issues to rooted corruption to rampant terrorism. While our department and authorities try to get a handle on the above mentioned issues a silent threat looms in the shadows, climate change! Pakistan contributes very little to the overall Greenhouse Gas (GHG) emissions, but remains at a growing threat of climate change disasters:

 

• Glacier melt in the Himalayas is projected to increase flooding will affect water resources within the next two to three decades. This will be followed by decreased river flows over time as glaciers recede.
• Freshwater availability is also projected to decrease which will lead to biodiversity loss and reduce availability of freshwater for the population.
• Coastal areas bordering the Arabian Sea in the south of Pakistan will be at greatest risk due to increased flooding from the sea and in some cases, the rivers.
• Being a predominantly agriculture economy, climate change is estimated to decrease crop yields in Pakistan which in turn will affect livelihoods and food production. Combining the decreased yields with the current rapid population growth and urbanization in the country, the risk of hunger and food security will remain high.
• Endemic morbidity and mortality due to diseases primarily associated with floods and droughts are expected to rise. Increases in coastal water temperatures would exacerbate the abundance of cholera.
• The impact of climate change will also aggravate the existing social inequalities of resource use and intensify social factors leading to instability, conflicts, displacement of people and changes in migration patterns.

Solar panels work on optimum productivity on clear days with abundant sunshine. But, do solar panels work in cloudy weather? Yes… just not quite as well on a cloudy day, solar panels can produce 10-25% of their rated capacity. The exact amount varies depending on the density of the clouds, and may also vary by the type of solar panel; some kinds of panels are better at receiving diffuse light. REON Solar Panels, for example, have been designed to capture a broader range of the solar spectrum. By capturing more red and blue wavelengths, the solar panels can generate more electricity even when it’s cloudy.

Earth’s surface receives an abundance of Ultraviolet light during cloudy days (if you’ve ever been at the beach when it’s overcast and gotten a suntan, you’ve experienced this firsthand). Some solar panels are in development that can capture UV rays, although these are not out on the market yet. Even with a standard solar panel on a cloudy day, though, you will be able to generate some power when it’s daylight. The same thing is true in foggy weather. If you live in a city with frequent fog, like San Francisco, you’ll still be able to generate electricity when the fog rolls in.

Inam ur Rahman
CEO, Dawood Hercules Co. Ltd.

Yesterday, the electricity regulator NEPRA (National Electric Power Regulatory Authority) held its latest hearing for tariff determination for Wind IPPs in Pakistan. I was extremely enthused by the number of people who turned up for the hearing as well as the level of participation. It was another demonstration of the belief that investors have in Pakistan and in renewable energy. There was also a lot of passion shown by all stakeholders – even the ones representing other government departments.

For the record, NEPRA had called this hearing to obtain public views on their proposal to bring the tariff from wind projects down to about 8.2 cents per KwH. This is a significant reduction from 10.44 cents (around 20%) announced just a year ago. This is also important because now energy from Wind would be one of the cheapest sources for new projects in the country. Isn’t this fantastic!. Not only is it renewable – but it is cheap too. No more highly polluting conventional power plants are needed.

1. Looking for the most inexpensive solution
One of the most obvious mistakes we as solar customers can make. It is important to not go too far on your hunt for the best value system on the market. If the offer seems too good to be true, chances are that’s exactly what it is. Solar power is a significant investment that should be thought of as a renovation to your office, with a relatively higher return on investment.

2. Don’t just throw panels on the roof
Solar Power systems are designed for certain types of roofs. A good supplier will survey your roof, evaluate the solar potential, and suggest the proper panel based upon the results. Your roof and the solar system should work together to maximize the energy output. Systems which are not catered to your specific roof are less likely to function properly and more likely to require additional adjustments, repairs, or replacements.

3. Installing an enormous system that you don’t need
Your energy needs are one of the most important factors in your decision to move onto Solar. Knowing the required size of system to get for your business depends on a lot of factors. When it comes to solar panels, bigger is not necessarily better. If you have carried out adequate research, any reputable installers you happen to choose will be able to figure out what size of a system will be best for you. You need to weigh up the cost of the system with the financial returns it will deliver. A good solar solutions company shall evaluate and help you understand your needs before the final purchase.

4. Solar consumer and their rights
As a customer, it can be a formidable experience trying to find correct, unbiased information when purchasing a solar power system. It’s important to know exactly what you need, and even more so what you don’t need, when purchasing a solar power system. For example, opinion on necessary solar system maintenance and servicing periods vary widely. Likewise, know that the right warranty is extremely important when purchasing your system, as it’s a long term investment that needs a level of insurance and reliability down the track. Make sure you read the fine print of your warranty agreement.

5. Taking your first offer
Doing your research is the most important thing with any investment, and solar systems, particularly with the addition of storage, are no different. You mustn’t trust the first offer you get. Research, look around, ask and then finalize!

6. Off-grid system and going green
Going off the grid sounds appealing for many reasons. Before battery storage technology was on the market, many people were drawn by the off-grid systems so they could go ‘completely green’. At the end of the day, the economics will determine whether you can sustain such a decision, and although you’ll be able to feel great about your carbon footprint, it’ll mean nothing if you can’t afford to keep doing it. If you’re considering solar panels in an urban area, go with a grid connected system and make (economically) sustainable choices. If you install a basic on-grid solar system, make sure it’s easily set up to upgrade to battery storage, as this will be the greenest way to progress your solar investment!

7. Shaded roof doesn’t mean solar wouldn’t work
It’s really important to never make assumptions as to whether you’re eligible for solar power. Solar panels that are being developed are very efficient and the presence of a shade or the absence of sunlight on certain day might not affect the energy production as much as you think it would.

8. Supporting your solar system
Acquiring solar should not be the only way to reduce your energy consumption and carbon footprint. Simply switching to solar won’t make you as energy efficient as you can be. Small, low cost additions to your office like insulation, window shades and responsible electricity use can all lower your energy consumption and increase your solar savings.

9. The wait on new technology
It is understandable that when you first invest, as is the case with any technological spending, consumers tend to hang out for the latest and greatest high tech gadgets to be released. New technology is certainly a reality for the solar industry, and while many technologies are worth the wait – i.e. solar storage – you will be waiting around forever if you want the latest and greatest thing. The reality is, new technology is being released all the time, and you could miss the boat on incredible long term benefits if you wait for too long.

For a country like Pakistan which has roughly 250 sunny days in a year, the solar power industry has a lot of potential and solar panels have the capacity of generating huge volumes of electricity.

Not only is the production of electricity through solar panels enough for consumption, it also sometimes exceeds the requirement. The excess electricity produced cannot just be disposed off! It must be stored in batteries. But there is a limit to how much can be stored in batteries. What to do then? Reduce the production of electricity through panels! This is the most common answer. But, in a country where there is a huge power shortage, why not use this excess electricity to solve this problem rather than curbing the production.