Round credit and why you should go on a date

Round credit and why you should go on a date

Round credit in the energy sector is a monster that has not been exposed especially to the media. I will try to give a brief overview of how the energy sector works in Pakistan.

Pakistan's energy sector includes both private and public companies. Currently, about 58 percent of the total volume included is in the private sector IPP (independent energy producers) and the rest are in the public sector. At least 61 percent of the electricity generation is generated by private companies. The only exception is in Karachi where both distribution and transmission are controlled by K-Electric.

In the distribution sector, about 90 percent of consumer discounts are offered to state-owned companies. Every government is failing to transform the energy sector structurally and is trying to “fix” it through interim measures (increasing consumer energy prices and liquidity injections). The direct and indirect promotion of Rs7.86 billion has been thrown into the energy sector since 2006 to save the system from collapse, but to no avail.

In Pakistan, a lack of inexpensive planning led to direct negotiations with IPPs. The policy of taking or paying contracts with independent guarantees provided by the state has created financial sector problems. The securities clauses in power purchase agreements (PPAs) and these IPPs have burdened the government with huge debts.

The same policy is still in effect and comes into effect in 1994. These policies have led to expensive fuel mixing. IPPs should be paid in USD thus dissolving our precious forex currency. Guaranteed energy bills have seriously distorted the cost of generating electricity in Pakistan.

As of June 2018, contracts have been entered into with the CPPA for production capacity of 42,349MW compared to the maximum demand charge of 28,687MW. Apart from not spending the remaining 13600MW, Pakistani taxpayers are on the road to pay their taxes. Look at the energy sector further, you will find that our confidence in foreign investment in the energy sector is growing. I can write, but I think I have stopped the story. Anyone who wants to look at the energy sector can read the Profit magazine and the amazing research paper published by PIDE.

In short, electricity prices in Pakistan will continue to rise for consumers. But do not despair because projects such as the Dassu Hydropower Project and the Russia-Russia gas pipeline project could serve as a beacon at the end of the tunnel.

Let's start with the simple features of this suggestion. The efficiency of this set may vary from place to place due to the general climate, type of accommodation and other minor reasons. Look, Karachi has a clear climate all year round (about two weeks of rain and cloudy days) while you can't say that about Islamabad. Can you? Given our climate, solar power generation may be the most efficient, least expensive, and most reliable source of renewable energy.

Types of solar system setup:

On-Grid Solar System:

As with sales data, this program is accepted by industry buyers and sellers alike. The national grid acts as a “visible” battery and does not require portable batteries to store the remaining power. Net metering looks at the units provided on the grid so that the owner can get units for free or money against it. Although this program does not provide any backup in the event of loadshedding.

Off-Grid Solar System:

This system is used in situations where access to the national grid is not possible. And it is more expensive compared to portable batteries in this set. Any surplus is stored in batteries. This setting does not offer the net metering option and appears to be only suitable for remote locations.

Hybrid Solar System:

As with sales data, this program is highly preferred by the commercial sector. This program provides both net metering and backup battery options as well. The owner may sell excess electricity back into the grid and obtain a backup copy in case of disconnection. Too bad the program has an expensive setup.

Map Performance Setup:

The reader of this article is probably a home-based electrician. I would assume that this person lives in a two-story house with six family members and enough space for such a setting. A 10KW setup in this case seems appropriate in terms of the electricity consumption pattern in the city.

My personal advice would be to opt for the On-Grid solar system setup. Why is that? Take a look at those numbers. The cost of this suspension is estimated at R1.15 million but with the proposed revenue of Rs2.7 to Rs3 million per year you can make money with a ROI of at least 20 percent. That's not even the best part. Because this set is effective, loans can be obtained in small amounts of about 6 percent.

Therefore, your average consumer will pay less in installments than he or she would have paid so his or her monthly electricity bills are just beginning. As a bonus, this will protect the consumer from future inflation. I predict that inflation will be higher than the main CPI (consumer price index) for inflation. As mentioned above, there is a need for foreign imports such as coal, furnace oil, and LNG. Coal is always high ($ 140- $ 150).

Oil is over $ 70 (staying above this annual price according to market analysts), and LNG has risen to record higher prices again. I am convinced that inflation tax is required. In short, beneficiaries will gain an ever-growing ROI in both common and real terms if my predictions follow.