Shams Power Solar power system: Energizing Pakistan’s Industrial Sector with Solar Power

 Solar Financing in Pakistan
In the era of rising electricity tariffs and grid instability, Pakistan’s industrial sector is rapidly turning to solar to power growth. Shams Power Limited, a pioneering solar Power Purchase Agreement (PPA) provider, stands at the forefront of this transition—delivering reliable, cost‑effective solar power to industrial facilities across the country.

🔆 Why Solar Is a Smart Move for Industry in Pakistan

  • Skyrocketing grid costs and blackouts: With grid power tariffs among the highest in South Asia and frequent load‑shedding, industrial units face rising production costs and unreliability.
  • Abundant solar resource: Pakistan enjoys annual global horizontal irradiance (GHI) averaging over 2,000 kWh/m²/year, making solar one of the most viable energy investments.
  • Competitive edge through energy savings: Manufacturing and export‑oriented firms have achieved electricity savings of 30%–70% by switching to solar PPA arrangements.
  • Environmental and corporate sustainability: Companies can claim carbon emission reductions without upfront capital—aligning business growth with greener operations.

 Shams Power: Who They Are & What They Offer

✅ Company Overview

  • Established in 2015 as a JV between PITCO and Orient Operating Company.
  • First company in Pakistan to secure a Distributed Solar Generation License from NEPRA—enabling legal solar PPA deployment.
  • To date, Shams Power has deployed over 35 MW in distributed solar projects, serving more than 15 satisfied customers.

🚀 Unique Business Model: BOOT + PPA

Shams Power builds, owns, operates, and transfers (BOOT) solar installations on client sites under Power Purchase Agreements. Under this model:

  • Clients incur zero upfront CAPEX or O&M costs.
  • Shams handles design, financing, procurement, construction, operations & maintenance—ensuring a turnkey solution.
  • Customers enjoy immediate bill savings as solar tariffs are fixed and below grid rates from Day 1.
  • At contract end (20–25 years), the system is transferred to the client.

🌟 Financial Strength & Technical Credibility

  • Backed by sponsors managing over 400 MW of thermal and solar IPPs across Pakistan.
  • Secured multiple financing facilities: PKR 2 billion (≈ USD 11.3 million) with Bank Alfalah and GuarantCo to support ~21 MW of projects; and additional PKR 1.5 billion for ~10 MW more.
  • The backing of GuarantCo under PIDG enables access to long‑term debt finance and risk mitigation.

Industrial Clients & Project Highlights

Shams Power has executed several high‑profile projects for the industrial sector:

  • Metro Cash & Carry Pakistan: A ~5 MW project across multiple facilities that cuts over 2,639 tonnes of CO₂ annually.
  • AkzoNobel Pakistan: A 0.5 MW rooftop solar installation on their Lahore plant, saving ~€14,000/year and offsetting ~387,000 kg of CO₂ annually.
  • Packages Mall Pakistan: A 2 MW rooftop system under the BOOT/PPA model, reducing ~1,100 tonnes of CO₂ per year.
  • Coca‑Cola Faisalabad: A 2.5 MW PV plant powered by JA Solar DeepBlue 4.0 Pro modules—built to withstand Pakistan’s harsh climate—supporting sustainability goals and industrial efficiency.

Benefits for the Industrial Sector

⚙️ Financial and Operational Advantages

  • No investment risk or maintenance burden: Shams covers all costs, eliminates operational headaches for the customer.
  • Stable electricity pricing: Long‑term PPA terms shield clients from volatile grid tariffs.
  • Fast ROI: Many industrial clients report payback periods within 2–4 years, driven by reduced grid consumption and diesel backup usage.

🌍 Environmental Impact & ESG Integration

  • Enables formalizing energy decarbonization targets.
  • Avoids indirect carbon footprint tied to diesel generators and fossil fuels.
  • Reduces strain on Pakistan’s over‑leveraged grid, while lowering CO₂ emissions by thousands of tonnes annually.

👷🏻 Local Impact & Scalability

  • The financing model support builds local capacity in solar financing and distributed generation.
  • Shams has created ~60 permanent local jobs and commits to inclusive hiring and training, including female engineers.
  • Offers modular, expandable systems—ideal for expanding industrial growth without major capex.

Challenges & Future Outlook

✔️ Challenges

  • Import duties and taxes remain obstacles. Earlier removal of sales tax exemptions caused costs to spike ~30% on solar setups in 2022.
  • Grid access and net‑metering policies still evolving—though Pakistan offers net‑metering and feed‑in incentives, long‑term regulatory clarity is needed *Wikipedia*.

🧭 Future Outlook

  • Pakistan imported nearly 19 GW worth of solar capacity in 2024 alone, adding 50% capacity growth in a single year, with industrial users driving adoption.
  • Declining battery prices are enabling energy storage integration, as seen in the Lucky Cement solar‑wind project supported by a 20.7 MW (22.7 MWh) battery system—boosting industrial resilience.
  • Shams Power continues to grow; recent financing deals position it for expansion well beyond the current ~35 MW footprint.

FAQs

Q1: What is the PPA (Power Purchase Agreement) model Shams Power uses?

A: Shams Power installs and operates the solar system on your site under a long‑term contract (20–25 years). They handle all CAPEX, O&M, and performance risk. You pay only for the electricity produced at a discounted tariff, with zero upfront investment and immediate savings compared to grid rates. At the end of the contract, ownership transfers to you.

Q2: How quickly can an industrial facility expect to recoup savings?

A: Depending on your current electricity cost and solar irradiation levels, many clients achieve payback within 2–4 years. For example, Coca‑Cola, AkzoNobel, Metro, and Factory clients have reported significant financial savings within that timeframe, while enjoying uninterrupted power and sustainability benefits.

Conclusion

Shams Power is transforming the way Pakistan’s industrial sector accesses energy—unlocking solar power’s potential through a proven BOOT + PPA model. Their track record of 35+ MW, high-profile industrial clients, credible financial partnerships, and expert technical support makes them a top choice for businesses seeking resilient, affordable, and clean energy solutions.

As Pakistan’s solar boom accelerates—with industrial demand driving growth—Shams Power is well positioned to lead the charge into a more energy-independent and sustainable future.

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