SMEs urged to tap solar energy

KARACHI: The small and medium enterprises (SME) sector should tap the solar energy source to deal with persistent power cuts and rising electricity tariffs.
“It is essential that SME units set time bound renewable energy targets for creating self-sustaining ventures. Such interventions at various levels shall not only benefit the individual units but also prove profitable for long-term sustainability of this sector and the energy sector in the country,” Inamur Rahman, chief executive officer at Reon Energy Limited said in a statement.
There are over 3.2 million SME establishments in Pakistan, which contribute approximately 40 percent in country’s gross domestic product (GDP) and 40 percent in employment generation.
“However, the sector has faced a difficult time sustaining itself by using fuel run generators to match the energy supply-demand gap. Various affected units have closed down and quite a few have relocated to avert trade crunches,” Rahman said. Renewable energy resources and technologies cover a very broad range and translate into an equally diverse range of opportunities for SMEs. Numerous specific sector studies over the period have proven that widespread commercially available technologies such as solar power can ease the energy crisis.
“With solar and wind power becoming increasingly competitive, various local banks have initiated credit facilities for green energy investments. Switching from fossil fuel to renewable sources can prove to be both economically and technically beneficial for the SME sector,” Rahman said.
Moreover, recent feed-in-tariff policies have created opportunity for SMEs to emerge as a third party renewable energy provider through energy sales to the grid.
The energy mix in the country is skewed towards imported resources as well as depleting domestic energy pipeline, which is unsustainable because of energy security issues, lack of control on costs and fuel supply matters.
With the recent technology improvements, solar and wind energy can provide a reasonable solution to meet the sector’s electricity needs.