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SolarPhotovoltaic(PV)systemsusecellstoconvertsolarradiationinto electricity. The PV cell consists of one or two layers of semi conducting material, usually silicon. When lights shine on the cell, it creates an electric field across the layers which cause electricity to flow. The electrical energy generated during the daytime can be directly used or itcanbestoredindeepcyclebatteriesforoffsunusage.

85,ooovillagesfromatotalof125,000villageshavebeenconnectedto the national grid by 2005. Out of remaining 40,000 villages, 7876 are very remote and scattered. It is economically and technically not viable toelectricitythese,villagesbyextendingnationalgrid.TheGovernment of Pakistan (GOP) plans to supply basic energy services and clean drinking water to these villages by exploiting renewable energy technologies. Villages which are situated at a distance of more than 20Kmaway fromthegridareeligibleto benefitfromdifferentformsof renewableEnergy.

Alternative Energy Development Board (AEDB) has been established to promote all environmental friendly alternative / renewable energy resources that have not been developed in Pakistan mainly due to the absence of a high level national body. The Solar Rural Electrification

Programme is being implemented by Alternative Energy Development Board with the funds provided by GOP it falls under the National Rural Electrification Programme launched by the GOP. Solar home Systems (SHS) have been selected as the most appropriated technology to fulfill basic energy requirements of selected village. Solar pumps will e used toprovidecleandrinkingwaterinnearvicinityofthevillage. A total of 7876 villages willbe electrifiedusing solarHome System.The villages are selected by the Provincial Governments through a list of villages provided by Water and Power Development authority (WAPDA). Inadditionto thecapacitydevelopmentofthestaff,AEDBhasplayeda pivotal role in conducting the baseline survey of the target area, training of the trainers and project staff for solar electrification. This milestone was achieved by AEDB before the active launch of the project. Multilinugual educational material for both literate and non literate audience has been developed by AEDB to insure efficient use of the technology. Private companies are energy service providers are responsible for fiving services to users during the first year after commissioning of the systems. Initially, installation of 3000 SHS in tharpaker district of province Sindh was contracted with two private companies in June 2007.Thisprojecthasbeencompleted. BenefitsoftheProject Provideaccesstoelectricityandinformation. Improvethelivingstandardofthebeneficiaries.

Alleviatetheirsenseofdeprivationandexclusion. Provideincreasedavailabletime. ProvideEmploymentopportunitiesandincreaseincome.

Investment Opportunities in Solar Power sector of Pakistan

Availabilityof1000wattspersquaremeter. Carbon Credits (for qualifying RE power projects eligible for financing under the clean) Development Mechanism shall be encouraged to register for Certified Emission Reduction credits withtheCDMExecutiveBoard,eithercollectivelyorindividually) Fiscal Incentives, no customs duty or Sale tax for machinery equipment and spares including construction machinery and specialized vehicle imported on temporary basis meant for the initial installation or for balancing modernization, maintenance, replacementorexpansionaftercommissioningofprojects. Exemption from Income Tax, including turnover rate tax and withholdingtaxonimports.