Cut by 60% ! Pakistan drastically reduces PV feed-in tariffs! The next ‘South Africa’ of the DEYE to cool down?

Pakistan proposed to significantly reduce photovoltaic feed-in tariffs! The ‘next South Africa’ of DEI, the current ‘hot hot’ Pakistani market to cool down?
The current Pakistani policy, PV on-line 2 degrees of electricity is equivalent to the utility 1 degrees of electricity. After the revision of tariffs, the government will settle the price of 7.5-11 rupees per unit of residual power on the Internet, instead of the current at least 21 rupees. Photovoltaic online only 6 kWh of electricity is equivalent to 1 kWh of utility electricity, revenue directly cut by two thirds!

In addition, Pakistan’s power sector has also launched a ‘winter power package’ to encourage residents to use more utility power! For incremental consumption of electricity will provide 18-50% discount.

Pakistan’s power contradictions, the government is also encouraging attitude towards new energy. This year, Pakistan’s photovoltaic storage market exploded, importing about 15GW of photovoltaic panels from China, valued at $2.1 billion. Pakistan has become China’s third largest module exporter!
So, this time, why Pakistan again on photovoltaic ‘put the brakes on it’?

The headline of the Bloomberg article explains the reason very well: ‘Pakistan’s Solar Boom Brings Surprises to Millions, but Hazards to Grid’.

Pakistan’s power grid is already fragile, a large number of distributed photovoltaic access, but also to make the grid overwhelmed.

So, what is the impact of this on the Pakistani photovoltaic storage market? Will the market reverse on this?

A healthy market, the main grid and solar energy must be harmonious development. Solar steps too fast and the grid collapses, which would be disastrous for the country’s economy and the millions of people who can’t afford to install solar. Therefore, in the long run, this adjustment may do more good than harm.

In addition, and industry stakeholders to exchange, each of the future of Pakistan is also optimistic. The ‘king of Pakistan’ German industry in December production rose, rushing to produce new products in Pakistan, in order to cope with the demand in the first quarter of next year.

Pakistan is a huge market, there is really no need to rush!