Академический Документы
Профессиональный Документы
Культура Документы
Market in Pakistan
Published by
Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH
Registered offices
Bonn and Eschborn, Germany
Authors
Saad Malik
VARIEGATE Consult
House 11-B, Street 50, Sector F-8/4, Islamabad
T: +92 300 522 9360
Email: smalik(at)variegateconsult.com
&
Jörg Mayer
Luz Alicia Aguilar
German Solar Association – BSW-Solar / Bundesverband Solarwirtschaft e.V.
Lietzenburger Straße 53
10719 Berlin
Email: info(at)bsw-solar.de
T: +49 30 2977788-0
F: +49 30 2977788-99
www.solarwirtschaft.de
Designed by
Anna Landskron
i Summary ........................................................................................................................................... 6
1 Introduction ....................................................................................................................................... 8
1.1 Background........................................................................................................................................ 8
1.2 Objective. .......................................................................................................................................... 8
1.3 Methodology of the Value Chain Analysis......................................................................................... 8
1.4 Introducing Pakistan........................................................................................................................ 10
2 Key Stakeholders for Power Sector Development in Pakistan ........................................................... 12
2.1 Government Institutions. ................................................................................................................ 12
2.2 Renewable Energy Associations. ..................................................................................................... 15
2.3 International Organizations............................................................................................................. 15
2.4 Scientific/Academic Organizations. ................................................................................................. 15
3 PV Sector in Pakistan........................................................................................................................ 16
3.1 Power Sector Status in Pakistan. ..................................................................................................... 16
3.2 Legal Framework for PV Development............................................................................................ 17
3.3 PV Market Potential......................................................................................................................... 18
3.4 Updates on Net Metering................................................................................................................ 19
4 Results of the Value Chain Analysis.................................................................................................. 20
4.1 Proportion of Revenue from Solar Components............................................................................. 20
4.2 Importers/Wholesalers.................................................................................................................... 20
4.3 Manufacturers/Assemblers............................................................................................................. 21
4.4 Suppliers/Installers.......................................................................................................................... 21
4.5 Solar PV Product and Service Range in the Pakistani Market.......................................................... 21
4.6 Imported Products........................................................................................................................... 23
4.7 Analysis of Products Fulfilling Norm and Quality Standards............................................................ 27
4.8 Availability Analysis of High-Quality Products and Services............................................................ 29
4.9 Potential Areas for Solar PV Products.............................................................................................. 29
4.10 Market Segments Using Different Product Qualities....................................................................... 30
4.11 Customer Segmentation Product Preferences. ............................................................................... 31
4.12 Quality Perceptions of Key PV Target Groups.................................................................................. 32
4.13 Payback Time Expectations of Each Customer Segment. ................................................................ 33
5 Business Environment for German PV Businesses............................................................................. 34
5.1 Challenges and Opportunities for German PV Businesses. ............................................................. 34
5.2 Target Segments for German Products in Pakistan.......................................................................... 35
5.3 Proposed Modality for Engagement of German Products in Pakistan. ........................................... 36
5.4 Business Conditions for PV Companies. .......................................................................................... 36
Annexes................................................................................................................................................. 37
Annex A. .................................................................................................................................................. 37
Annex B. .................................................................................................................................................. 38
Annex C. .................................................................................................................................................. 45
Annex D................................................................................................................................................... 49
Pakistan is a federal parliamentary republic and the pricing that caters to different economic classes of
sixth most populous country in the world, with a customers.
present population of over 190 million.1 Recent eco-
nomic developments in the country have been posi- However, sub-standard/low-quality PV products pro-
tive, with a GDP growth of 4.2 percent in FY 2015 liferate in Pakistan and awareness concerning the
compared to 4 percent in FY 2014 and a growth of benefits of quality PV is lacking.
4.5 percent forecasted for 2016. 2 The country has
been facing a significant energy deficit in the past According to the survey conducted with the selected
decade with power shortfalls of approx. 5 GW3 and stakeholders from the solar value chain for the de-
load shedding across the country varying between velopment of this analysis 4 , the level of customer
5 to 12 hours a day in rural areas that bear the main awareness regarding quality PV is low: The value
brunt of the load shedding. chain players perceive the share of ‘certified’ PV
components related to the total PV components in
The Government of Pakistan (GoP) has taken a con- the market to be only 20 percent for PV panels, 14
siderable number of incentives in its energy strategy percent for inverters and 9 percent for batteries.
to overcome the energy deficit through the promo-
tion of both large-scale grid-connected PV projects Amongst the different PV customer segments in the
as well as smaller-scale projects. The introduction of Pakistan market, the residential sector remains the
the net metering scheme in September 2015 has most price-sensitive, although a niche market does
been an encouraging sign. Further steps are being exist for high-quality products, particularly batteries
taken to reduce bureaucratic procedures (i.e. ‘red and inverters. The industrial sector claims to prefer
tape’) n the processing of applications for issuance European products, since they are bankable and
of net metering licenses. The GoP has also encouraged more reliable. However, currently they are mostly
‘large-scale’ grid-connected PV projects through the purchasing Chinese products (PV panels and inver-
introduction of a feed-in tariff (FiT), increasing the ters) due to the higher costs of European products
interest of investors. and the limited offer of after-sales services in com-
parison to Chinese products.
Currently the PV market is dominated by Chinese
products: 95.6 percent (975.3 MW) of PV panels, Grid-tied systems, particularly ‘inverters’, are expec-
71.5 percent (1328.8 MW) of inverters and 85.1 ted to remain the prime market segment for German
percent (24,970 tons) of deep cycle batteries have PV companies targeting the Pakistani market for use
been imported from China into Pakistan between in medium-scale (100 kW-1 MW) and large-scale
October 2015 and September 2016. The dominance (>1 MW) grid-connected projects which are usually
of Chinese products is attributed to price competitive set up by the industrial and commercial sectors.
ness with similar products from other countries, However, price competitiveness with comparable
extensive customer outreach through dealership products from other countries will be critical. Batte-
networks and the large variation in product quality/ ries as backup systems (AGM) for the residential sector,
1 data.un.org
2 data.worldbank.org/country/Pakistan
3 NEPRA et al 2015 “State of Industry Report’’
4 Please see the methodology in chapter 1
5 http://www.sbp.org.pk/smefd/circulars/2016/C3.htm
MANUFACTURERS SUPPLIERS
IMPORTERS WHOLESALERS
ASSEMBLERS INSTALLERS
FINANCIAL PROJECT
EPCs
INSTITUTIONS DEVELOPERS
6 data.un.org
7 data.worldbank.org/country/Pakistan
8 NEPRA et al 2015 “State of Industry Report’’
kWh/m2/day
>9
8,5–9,0
8,0–8,5
7,5–8,0
7,0–7,5
6,5–7,0
6,0–6,5
5,5–6,0
5,0–5,5
4,5–5,0
4,0–4,5
3,5–4,0
0 100 200 400
3,0–3,5
Kilometers
2,5–3,0
2,0–2,5
<2
August 2006
RE PROJECTS
NEPRA PROVINCIAL RE PROJECTS EXCLUDING HYDEL > 50 MW & THERMAL IPPs
is sole regulator in
power sector which
issues generation
licenses determines
tariffs for generation
etc.
CPPA NTDC
CENTRAL POWER NATIONAL TRANSMISSION &
PURCHASING AGENCY DESPATCH COMPANY
11 DISCOs
BULK CONTRACTS DISTRIBUTION COMPANIES
CCoE is chaired by PM MoWP is Federal AEDB is autonomous Provincial DoEs are NTDC operates and CPPA responsible for
of Pakistan and takes Ministry and GoP’s body and ’one window‘ focal points for all maintains 500 kV and implementing and
decisions on fortnightly body for all issues facilitator at federal energy related issues 220 kV grid stations administering ’Single
basis on entire power relating to energy level for processing in the province. and transmission lines. Buyer Plus‘ market
chain. generation, transmission solar projects of all mechanism leading to
and distribution, policy sizes and issues LOls competitive market
formulation etc. and issues tax operations.
exemption certificates.
13 http://www.nust.edu.pk/INSTITUTIONS/Centers/CES/Pages/default.aspx
3.1 Power Sector Status in Pakistan The share of renewables in Pakistan has been steadily
increasing each year, with 1136 MW of renewables
3.1.1 Existing and Projected Supply and Demand having been installed by 2016 (primarily PV, biogas
Scenario and wind projects). During the last year, i.e. 2015-16,
The power deficit in the country currently stands there has been a promising increase in the share of
near 5 GW, with the supply and demand scenario renewables, with 728 MW of renewables added. The
shown in Figure 5. However, multiple power genera- increase in renewables to the overall power sector
tion projects from various sources are currently in landscape of Pakistan is provided in the Figure 6
the pipeline and are envisaged to eliminate the po- below.
wer deficit by 2019, provided that expected projects
are completed on time. PV projects can play a key
role in the elimination of the power deficit, particu-
larly in the industrial and residential sectors.
Availability
Demand
30 938
27 600
2010 2011 2012 2013 2014 2015 2016
25 080 26 590
23 107 RE - - - 50 106 408 1.136
21 599 24 262 25 961
18 738 Nuclear 462 787 787 787 787 787 1.127
Thermal 14.240 15.753 15.888 15.852 16.963 16.963 16.814
19 917
17 107 18 262 Hydro 6.555 6.627 6.627 6.928 7.097 7.097 7.121
21 096
17 500
Figure 6: Share of Renewables in Power Sector Landscape of Pakistan15
14 121
Aug 16
Aug 17
Dec 16
Dec 17
Apr 18
Feb 18
Apr 17
Feb 17
Oct 16
Oct 17
Jun 18
Jun 16
Jun 17
14 MoWP
15 CPPA, NEPRA and AEDB
Commercial 7,5 % St. Light, Traction & Oth. 0,7 % Commercial 7,6 % St. Light, Traction & Oth. 0,6 %
Total: 74.348 GWh Total: 85.818 GWh
An overall growth in demand of 11,000 GWh in over- This was followed by the introduction of net mete-
all electricity consumption has taken place over the ring in September 2015, with further steps being
past five years, with both the domestic and industrial taken to reduce bureaucratic ‘red tape’ in the pro-
sectors displaying an increase in electricity consump- cess of applications for issuance of net metering
tion. The overall growth in demand over this period licenses.
was approximately 7300 MW.
Additionally, the ‘import quality standards for PV
3.2 Legal Framework for PV Development 16
equipment’ by the GoP is expected to be adopted
soon and aims to curb the import of uncertified and
The GoP has also taken a considerable number of sub-standard equipment into the country. Once these
incentives in its strategy to overcome the energy standards are implemented, there will be greater
deficit through the promotion of both large-scale standardization, both in terms of pricing as well as
grid-connected PV projects as well as smaller-scale the quality of products available in the market, and
projects. The first step in this regard was its 2006 the leading international solar companies will be en-
‘Policy for development of renewable energy for couraged to increase their stakes in this emerging
power generation,’ which intends to increase the solar market. These approved standards are detailed
deployment of renewable energy technologies in in Annex D.
Pakistan to 9700 MW by the year 2030, according to
the Medium Term Development Framework (MTDF).17
18 http://www.sbp.org.pk/smefd/circulars/2016/C3.htm
19 GIZ REEE Project et al 2014. Updating of Renewable Energy Installations Database
20 GIZ REEE Project et al 2014. Updating of Renewable Energy Installations Database
No Yes
21 The figures provided with regards to proportion of PV panel market shares are rough estimates based on feedback collected during surveys and
market research. Detailed surveys are necessary to determine more accurate statistics regarding the PV panel landscape in Pakistan.
22 The figures provided with regards to proportion of battery market shares are rough estimates based on feedback collected during interviews and
market research. Detailed surveys are necessary to determine more accurate statistics regarding the battery landscape in Pakistan.
0,22 % (1,1 MW) 0,21 % (1,1 MW) 1,39 % (14,1 MW) 0,53 % (5,4 MW)
3,20 % (16,7 MW) 1,40 % (7,3 MW) 0,62 % (6,3 MW) 1,47 % (15 MW)
China
China UAE
UAE Malaysia
Germany Germany
Others Others
China
China
Vietnam
USA
USA
Vietnam
Korea
France
82,44 % (19.900 tonnes) Singapore 85,13 % (24.970 tonnes)
Korea
Other EU States
UK
Germany
Germany
Others
Others
Germany
Finland China
Others Germany
Finland
4,47 % (26,2 MW) 6,72 % (39,4 MW) 5,96 % (43,2 MW) 5,83 % (42,3 MW)
China
Germany
USA
Singapore Turkey
25,86 % (151,5 MW) 21,98 % (159,4 MW)
Italy Sweden
Others Others
20
18 20 %
16
14
12 14 %
10
8
9 %
6
4
2
0
Inverter Battery Panel
23 Results based on interviews with PV key value chain actors (wholesalers, importers, installers, retailers etc.)
The harm to both customer confidence and the dif- future is expected to pave the way for a reduction in
ficulties in choosing certified products is evident the quantity of sub-standard and uncertified equip-
considering that ‘certified’ solar PV panels are sold ment present in the market. Based on the feedback
for up to 1 USD per Watt and last for 20 years, while received from the value chain actors, it is generally
an ‘uncertified’ panel costs 0.5 USD per Watt and felt that a short to medium-term improvement of 35
lasts for 2 years. percent in the volume of certified equipment available
in the local market can be expected, with stricter
The adoption of the “import quality standards for PV implementation of these standards expected to in-
products” that is to be implemented in the near crease the proportion of high-quality products.
24 Results based on interviews with PV key value chain actors (wholesalers, importers, installers, retailers etc.) and on market research. The list is
not exhaustive and may not include all available brands. The component brands are listed in no particular order. Considering the scope of this
study, it was not possible to assess the specific market share of each respective brand mentioned here. Classification of equipment into ‘tiers’ is
currently not possible due to the lack of quality standards in Pakistan.
Reputed quality brands from Europe, USA and Asia In areas where industry is concentrated, such as the
are available in limited quantities, with the specific textile industry in and around Faisalabad and Lahore,
component directly imported in case of large-scale as well as the sports industry in Sialkot, there is a
project interventions. In periods of high demand, high potential for the deployment of solar PV pro-
equipment shortages are common due to insufficient ducts.
inventories maintained by the local dealers. The only
solution in such instances is a waiting period of at Also, there is enormous potential for solar pumping
least one month until the required shipment is ordered in the agricultural sector, with the Punjab and Sindh
and reaches the port of Karachi in the south of the provinces being the two largest agricultural regions
country. with the greatest potential demand.
It should be mentioned that high-quality spare parts In addition, the off-grid areas in the country also pos-
are rarely available, as is the expertise for repairing sess high potential, with over 40,000 villages across
these products; in most cases, a defective compo- the country that are presently un-electrified.
nent is sent back to the manufacturer, who is often
based in Europe, resulting in a considerable time lag
until the client receives the repaired equipment.
90 %
80 %
82 %
70 %
70 %
60 %
58 %
50 % 56 %
40 %
44 %
42 %
30 %
30 %
20 %
18 %
10 %
0 %
Price Qualitiy Price Qualitiy Price Qualitiy Price Qualitiy
25 Results based on interviews with PV key value chain actors (wholesalers, importers, installers, retailers etc.)
quality. Keeping in view the tendering procedures Moderate level of awareness (>2≤5): 67% of customers
commonly used in the public sector, the lowest bid High level of awareness (>5≤10): 10% of customers
Public sector
Industrial Commercial Residential (government-funded)
Typical installation size Typical installation size Typical installation size Typical installation size
1 MW – 10 MW 100 kW – 1 MW 1 kW – 20 kW 50 kW – 200 kW
High-potential industries & High-potential industries & High-potential locations High-potential segments &
locations locations (i) Urban centers (Karachi, locations
(i) Textile (spread across Punjab (i) Hospitals (across the country) Lahore, Islamabad, Rawalpindi, (i) Public hospitals & health
province) (ii) Private educational institutions Faisalabad, Multan, Hyderabad) facilities
(ii) Sports (focused in Sialkot city) (iii) Hotels & restaurants (across (ii) 40,000 un-electrified off-grid (ii) Government educational
(iii) Food industry (across the the country) villages across the country institutions (across the country)
country) (iv) General provision stores (iii) Agricultural areas across (iii) Public parks and recreation
(iv) Pharmaceutical industry (across the country) Punjab, Sindh and KPK provinces facilities (across the country)
(Karachi) owned by farmers with land (iv) Public offices (across the
Possible project financing holdings of different sizes country)
Possible project financing models
models (i) Financing through recently- Possible project financing Possible project financing
(i) Financing through recently announced scheme for RE models models
announced scheme for RE project financing by State Bank (i) Financing through recently- (i) Public financing from national
project financing by State Bank of Pakistan. Loans offered at 6 announced scheme for RE approved budget as per PC-1
of Pakistan. Loans offered at percent for solar PV projects up project financing by State Bank document
6 percent for solar PV projects to 50 MW. of Pakistan. Loans offered at (ii) Grant aid from international
up to 50 MW. 6 percent for solar PV projects donor agencies
(ii) Conventional financing up to 50 MW.
(ii) Conventional financing through lending from bank Product preferences
through lending from bank along with equity from project (ii) Equity Tendency remains to maximize
along with equity from project developer project size within allocated
developer (iii) Funding through donor budget. Also, open tenders
(iii) Equity projects in off-grid areas bidding mechanism based on
Product preferences awarding project to lowest
Based on past trends, industry Product preferences Product preferences bidder results in high-quality
prefers to install reliable and In the past, tendency was to High price sensitivity exists with and durable products losing out
high-quality components to install cheaper and less reliable niche market for high quality to competitors offering
ensure project bankability. quality Chinese brands.However, and certified products. Large lower-quality products.
slowly trend moving towards proportion of clients in this
SMA, Schneider and ABB quite increasing awareness leading to sector opting for Chinese products,
popular in terms of reliability installation of SMA, Schneider although increasing interest in
compared to Chinese products and ABB due to high level of certified high-quality products
reliability as result of ‘lessons learnt’
5,0
4,5 5 years 5 years
3,5
3,5 years
3,0
Payback Time (years)
2,5
2,0
1,5
0,5
0 ,0
Commercial Residential Industrial Govt Buildings
Challenges Opportunities
Customer awareness needs to be increased to reduce price Net metering regime introduced by NEPRA in Sept 2015.
sensitivity amongst the different customer segments and This regime will incentivize commercial units, industry and
disseminate the long-term benefits of investing in high household consumers to install PV and generate revenue by
quality certified equipment. feeding back into the grid. Issuance of licenses for net
metering has commenced.
Products Services
For use in medium-scale (100 kW-1 MW) and large-scale (techno-economic feasibility studies, grid connection
(>1 MW) grid-connected projects set up by industrial and studies, support in project tendering process, monitoring of
commercial sectors. commissioned projects, maintenance and operation of large
scale grid-connected & medium-scale PV projects)
Price competitiveness with comparable products from
other countries will be critical.
EPC Companies
Batteries (flooded or AGM)
For developing both commercial sector (kW scale) and large
scale (>1 MW) grid-connected projects
For residential sector and off-grid systems as well as
commercial sector installations requiring battery backup.
High-quality EPC contracting companies with a strong
Installed system sizes are expected to scale up to utilize the
profile of developing large-scale projects are in high
economic benefits of net metering and will require larger
demand.
battery banks.
L arge Inventory/storehouse of high-quality PV However, the local battery industry is very powerful
products components must be available in the and influential and has managed to convince the GoP
country to instantly replace any malfunctioning through the relevant departments (Engineering De-
items that require replacement or repair. velopment Board and Federal Board of Revenue) to
After-sales services of high-quality manufacturers add a duty on the import of all types of battery into
should be available in Pakistan. the country. Nevertheless, the payment of the duty
Join forces with existing sales channels of other on import batteries depends on the custom officials,
high-quality products from Germany such as the since they cannot judge whether a battery that arri-
automotive industry (for residential) or equipment ves at the port for evaluation of duties has been ma-
manufacturers (for industrial customers). nufactured in Pakistan or not.
High-quality manufacturing firms should to provide
product information to the consumers to inform Generally, the import of PV panels, solar inverters
them about the added value of their product. and charge controllers can be imported with the
Place advertising in very specialized magazines for least amount of hassle in terms of obtaining the tax
specific industrial target groups. exemption. However, the import of batteries, even
when imported as part of a PV system design, can
be quite challenging, and the securing of the tax ex-
emption can never be guaranteed.
Annex A
15 Tribal Electric Supply Company (TESCO) Sukkur Electric Power Company (SEPCO) http://tesco.gov.pk
17 Pakistan Council for Renewable Energy Technologies (PCRET) Federal Board of Revenue (FBR) http://www.pcret.gov.pk
25 PSA http://www.pakistansolarassociation.org
26 REAP http://www.reap.org.pk
27 USAID http://www.usaid.gov/pakistan
28 JICA http://www.jica.go.jp
29 ADB http://www.adb.org/countries/pakistan
30 KfW http://www.kfw-entwicklungsbank.de
31 EU http://www.ec/europa/eu
32 GIZ http://www.giz.de
33 UNDP http://www.pk.undp.org/
Interview Questionnaire
Interview Questions for Consultations with Actors of Solar PV Value Chain in Pakistan
(i) What do you see as your main need in accessing markets for solar products?
(iii) To whom do you sell your solar products or services (please add the percentage that each has)?
• Large firms:
• Small firms:
• Wholesalers:
• Exporters:
• Retailers:
• Direct to consumers:
(iv) Describe the relationships you have with these buyers. Who determines what to produce, product
specifications, prices, and amount purchased? How much input do you have?
(vi) How strong is the market for your solar products/services right now? How much MW of product have
you sold this year? How much estimated revenue have you generated this year (USD)? Next year? What
trends do you see?
(viii) How would you rank the quality awareness level of your customers on a scale of 1 to 10?
(1 being totally unaware and 10 being highly aware)
(ix) Are there any specific system components for which the customers demand quality?
If so, which components are they?
(i) Which high-quality solar products do you see being popular and being sold in high volumes in Pakistan?
(ii) How much more, in percent, do you think the Pakistani population would be being willing to pay for
high-quality products compared to existing products available in the market?
(iii) What do you see as the crucial components for durable solar systems in Pakistan?
(iv) What proportion of the present solar components in the local market would you say are high-quality?
Which higher-quality components are generally locally available at present?
(v) What is your perspective regarding cost versus quality of local versus imported? What is the general
opinion of the consumers in this regard?
(i) What standards or certification requirements do your solar products fulfill voluntarily?
(iii) Are you in favor of complying with the soon-to-be-introduced quality import standards?
(iv) Once the standards are implemented, what proportion of the solar products available in the local
market do you expect to comply with these standards?
(i) What are your major needs in product design and manufacturing (or service delivery)?
(ii) What are your major opportunities in product design and manufacturing (or service delivery)?
(iii) What percentage does each solar product represent in terms of your gross revenue?
(iv) What have you done recently to improve your solar products or services?
(v) Is your current equipment or machinery an impediment to growth? Explain. If so, what kind of equipment
or machinery could improve your business?
(vi) Is the current level of your workers’ training holding back growth? If so, what additional training do
they need?
Management/Organization
(i) In the area of organization and management, what are your major needs/opportunities?
(iii) Do you presently or would you consider collaborating with other firms to produce and deliver custo-
mer orders? If so, what possible types of synergies do you envision?
(iv) Which aspects of your business do you intend to change in the next 2 years (machinery, equipment,
computers, new products, marketing strategy, quality control, management system, worker skills, etc.)?
(v) What management skills would you like to strengthen in order to grow your business?
(i) What are your major needs in the areas of input cost, quality, and availability?
(ii) What are your major opportunities in the areas of input cost, quality, and availability?
(iii) Who are your most important suppliers and what do you buy from each?
(v) Have you ever purchased inputs jointly with other business? Explain.
Imported Items
(i) Please specify the country from where the following products are imported?
PV panels:
Inverters:
Batteries:
Charge controllers:
Wiring:
Others (mention here):
(iii) What specific criteria are being used to select the products to be imported? (price, quality, proximity
etc.?)
(iv) What are the key obstacles/barriers faced by your business relating to the import of solar PV equip-
ment into the country?
(i) Where do you go when you need money for your business?
(ii) Do you get credit from input suppliers? What are the terms?
(iii) Do you get production financing from your buyers? What are the terms?
(iv) Do you have a need for additional financing at the moment? If so, what would it be used for?
(v) What sources (formal or informal) have you approached for loans, and what have been the key problems,
if any?
(vi) Other (repayment rates in the sector, risk management insurance, etc.)
Policy/Regulation
(i) What government policies/regulations benefit your business (registrations, inspections, subsidies,
incentives, etc.)?
Infrastructure
(i) What are the most important infrastructure constraints affecting your business’ growth and profitabili-
ty (road/transport conditions, telephone service, electric supply, crime/corruption, storage, etc.)?
(iii) What are the primary functions and benefits of these associations?
Open-ended Questions
(i) Which are the high-potential areas for solar PV products in Pakistan?
(ii) What are the preferences of the different customer segments regarding product qualities?
Commercial
Residential
Industrial
Commercial
Residential
Industrial
(v) What are the major incentives you have for investing in / promoting change in the solar PV value chain?
(vii) What do you think are the strengths of the solar PV industry, locally and/or internationally?
(viii) What are the main weaknesses of the solar PV industry in Pakistan?
(ix) What do you think is the greatest challenge facing the solar PV industry today in Pakistan?
(x) Can you name some business owners in the solar PV industry who are leaders – in terms of technology,
product design, quality, or marketing, for example?
3 Mr. Waleed Elahi Green Gen Solutions (Pvt) Ltd waleed@greengen-solutions.com / 0300-8565319
4 Engr. Muhammad Ishaq Bhatti Read Solar (Pvt) Ltd ishaqbhatti@hotmail.com / 0321-4441400
5 Lt. Col Ahmed Fawad Farooq Sun & Seams (Fawad Enterprises) Fawadenterprises9@gmail.com / 0321-7869900
7 Mr. Mian Sultan Mehmood Creative Electronic (Pvt) Ltd Sultan1256@hotmail.com / 0320-8800172
9 Mr. Gul Sher Khan Alpha Renewables (SMC-Pvt) Ltd gulsher@alphasolar.com.pk / 0321-6149491
As can be observed in the next figure, 19 percent of As can be seen in the figure below, the age of firms
the firms have ten or fewer employees, while 58 consulted varied, with 58 percent of firms founded
percent of the firms have more than ten but less five or less years ago and 23 percent of firms foun-
than or equal to twenty employees. Furthermore, 15 ded between 5 and 10 years ago and 12 percent of
percent of the firms have a workforce between 20 firms founded between 10 and 15 years ago. A small
and 50 people, while the larger market leaders that proportion (8 percent) of the firms consulted were
were consulted have workforces ranging between founded between 15 and 25 years ago and are basi-
100 to 200 people. cally the market leaders at present, with a consider-
able market share due to early entry into the PV
It is worth mentioning that most PV companies in market.
the local market prefer to maintain a small employee
workforce to limit their overhead costs. A large num-
ber of PV companies choose to develop joint ventures
with other companies to bid for projects and increase
their chances of winning a tender by displaying a
larger employee workforce.
60 60
58 %
50 50 58 %
Percentage of Companies (%)
40 40
30 30
20 20
23 %
19 %
10 10
15 %
12 %
8 %
0 4 % 4 % 0
≤ 10 >10 ≤ 20 >20 ≤ 50 >50 ≤ 100 >100 ≤ 200 ≤ 5 >5 ≤ 10 >10 ≤ 15 >15 ≤ 25
The distribution of annual turnover of the PV busi- The breakdown of the type of PV businesses and
nesses consulted is depicted in the figure below. companies consulted is shown in the next figure:
Considering the market turbulence in the local mar-
ket due to the reduction in oil prices and the general
slowing of business in the past year, 63 percent of
the businesses reported turnovers of less than 1 mil-
lion USD. By comparison, 13 percent of the busines-
ses reported turnovers between 1 and 5 million USD
with 19 percent of the solar businesses having a
turnover of between 5 and 10 million USD.
100
100 %
90 96 %
80
70
70 77 %
60
60
Percentage of Companies (%)
63 %
50
50
40 40
30 30 38 %
20 20
10 19 %
10
13 %
8 %
0 5 % 0 4 %
≤ 1 > 1 ≤ 5 > 5 ≤ 10 > 10 Assembler Importer Wholesaker Retailer Installer Monitoring
100 %
Owner
100 % 100 %
90 % Employee
70 %
60 %
63 % 63 %
50 %
50 %
40 %
20 %
25 %
10 %
12 % 12 %
0 %
Gen Management Product Design Purchasing Shipping Accounting Marketing Aftersales service
6 IEC 62103 (2003-07) Ed.1.0 Electronic equipment for use in power installations