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Clean Energy Options for Rural Pakistan: Lessons from South Asiaenergy technologies to consumers. In its essence this commercializationmodel consists of a national program that provides subsidy support andquality control and allows private sector or NGO partners to supply systemsunder a certain warranty and quality guidelines. The private sectorsupplier will market the systems and make the sale. The national programroutes the subsidy through the supplier. In addition to providingthe subsidy, the national programs also provide financing for the purchaseof systems. In Sri Lanka RERED financing is provided throughindependent micro-finance organizations. In Bangladesh it is providedto the consumers through the participating NGO in the form of vendorfinance and installment payment. Solar home systems and householdbiogas technologies can be expanded rapidly in Pakistan by replicatingthe basic business models available in neighboring countries.FinancingThe availability of financing has been shown to boost investment inRETs. Financing is required for the private sector to invest in grid-connectedRETs or in ordering a shipment of solar home systems. Donorsupport has been utilized effectively in many countries by private developersto support market development and trail-blazing costs of early pioneers.These examples are subsequently picked up by the local marketsand attract competitors—expanding the market for energy services evenmore. The rapid growth of grid-connected small hydropower and solarhome systems market in Sri Lanka since 1997 and the solar home systemsmarket in Bangladesh since 2003 can both be attributed to their respectiveWorld Bank and GEF-funded projects that provided financing tosuppliers and project developers. This has been key to the commercializationapproach in both countries.On the consumer side, availability of micro-finance is key for manyrural consumers to purchase solar home systems. As the birthplace ofmicro-finance, Grameen Shakti in Bangladesh offered micro-finance forsolar home systems right from the beginning. In Sri Lanka, one of theparticipating credit institutions under the RERED program is the leadingmicro-finance agency in Sri Lanka, where solar home systems constitute aremarkable 30 percent of the micro-finance agency’s lending portfolio.Financing will be a constraint for renewable energy investors inPakistan as the sector grows. Pakistan’s Alternative Energy Development| 181 |
Bikash PandeyBoard needs to work with existing banks and micro-finance institutionsto add renewable energy to their repertoire of loan products.Clean Development MechanismThe Clean Development Mechanism (CDM) has become fully functionalafter the ratification of the Kyoto Protocol in February 2005. Renewableenergy CDM projects constitute some 17 percent of the pipeline of projects.The rest of the pipeline is dominated by projects which abate industrialgases like hydro-fluorocarbon with extremely high global warmingpotential, as well as nitrous oxide (N2O) and methane (CH4) from landfillsites, both of which have a high potential for causing global warming.Renewable energy technologies abate relatively modest amounts ofgreenhouse gases compared to their high upfront costs. However RETscontribute strongly to sustainable development, the other central objectiveof CDM projects together with greenhouse gas reduction.The Ministry of Environment, the Designated National Authority,and the Alternative Energy Development Board can play an importantrole in increasing awareness about CDM as well as in assisting renewableenergy investors in Pakistan to take advantage of the RE market.This will help increase the financial IRR (what is IRR?) of projects andmake them more attractive to both investors and banks.Notes1. International Energy Agency, “Energy and Poverty,” in World Energy Outlook2002 (Paris: International Energy Agency and the Organisation for EconomicCooperation and Development, 2002), available from http://www.iea.org/textbase/nppdf/free/2000/weo2002.pdf.2. Hasna J. Khan and Asma J. Huque, “Solar Photovoltaic in RuralElectrification: Market Assessment Survey in Bangladesh,” Energy ResearchCenter/Prokaushali Sangsad Limited, Dhaka, 1998, http://www.nrel.gov/villagepower/vpconference/vp98/Workshop/mpv/khan.pdf.3. J. Saghir, “The global investment challenge – financing the growth ofrenewable energies in developing countries,” Renewable Energy World 8 (2005): 4,196-211.4. Christopher Flavin and Molly Hull Aeck, “Energy For Development: ThePotential Role of Renewable Energy in Meeting the Millennium DevelopmentGoals,” paper prepared for the REN21 Network by The Worldwatch Institute,| 182 |
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Available from :Asia ProgramWoodrow
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contents3 Glossary5 IntroductionRob
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glossaryAEDBBSPBtuCCGTCHASNUPPc-kmC
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IntroductionRobert M. HathawayPakis
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IntroductionProgram, to look at Pak
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Robert M. Hathawaydifficult to draw
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Robert M. Hathawayattendant law and
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Robert M. HathawayThe University of
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Robert M. HathawayEnergy matters fo
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Mukhtar Ahmedconsuming sectors, and
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Mukhtar AhmedExhibit 1: Total Prima
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Mukhtar AhmedExhibit 4: Energy Dema
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Mukhtar AhmedExhibit 6: Indigenous
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Meeting Pakistan’s Energy NeedsEx
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Meeting Pakistan’s Energy Needsun
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Meeting Pakistan’s Energy Needsan
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Meeting Pakistan’s Energy Needsin
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Shahid Javed BurkiGiven the belief
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Shahid Javed Burkiconsumption of ga
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Shahid Javed BurkiTable 3: Sources
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Shahid Javed Burkiestablished the W
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Shahid Javed BurkiIt was during the
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Shahid Javed Burkicapacity that cam
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Shahid Javed Burkidetachment of the
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Shahid Javed Burkithere are serious
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Shahid Javed BurkiTable 10: Water U
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Shahid Javed BurkiGiven what has al
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Shahid Javed Burkito several period
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Sabira QureshiThis essay analyses t
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Sabira Qureshi(GDP) grew by an esti
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Sabira Qureshibut sparsely populate
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Sabira Qureshifor 54 percent of the
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Sabira QureshiGlobal Correlations o
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Sabira Qureshialso draws important
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Sabira Qureshitotal energy picture
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Sabira Qureshireason why households
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Sabira QureshiConclusionThe near in
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Sabira QureshiterUtilitySubsidiesSU
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Social and Gender Issues inPakistan
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Social and Gender Issues in Pakista
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Energy and the Pakistani Economy:An
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Energy and the Pakistani Economy: A
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Power Sector Reform in Pakistan:Iss
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Power Sector Reform in Pakistan: Is
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Page 138: Power Sector Reform in Pakistan: Is
Page 141 and 142: Sanjeev Minochaforms the primary ba
Page 143 and 144: Sanjeev MinochaThe Risk/Return and
Page 145 and 146: Sanjeev Minochaunusual to find a ju
Page 147 and 148: Sanjeev MinochaWhile the scope of i
Page 149 and 150: Asad UmarIn the oil exploration and
Page 151 and 152: Asad Umarof the market share and 65
Page 153 and 154: Asad UmarPakistan’s Energy Sector
Page 155 and 156: Asad Umaruncertainty for private se
Page 157 and 158: John R. HammondPakistan: Total FDI
Page 159 and 160: John R. HammondOrganization for Eco
Page 161 and 162: John R. HammondUSEA International E
Page 164 and 165: U.S. Chamber of Commerce EnergyOver
Page 166 and 167: U.S. Chamber of Commerce Energy Ove
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Page 193 and 194: Saleem H. AliBursts of infrastructu
Page 195 and 196: Saleem H. Alihigher consumption and
Page 197 and 198: Saleem H. AliThe Peril of Prestige
Page 199 and 200: Saleem H. Aliled to salinity and wa
Page 201 and 202: Saleem H. Alienergy policy that onl
Page 203 and 204: Saleem H. Alielectricity generation
Page 205 and 206: Saleem H. Aliconscious energy polic
Page 207 and 208: Saleem H. AliDallas, 2001).20. For
Page 209 and 210: Fueling the FutureSpecial Report No
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