Title

Redefining strategy of solar lighting business in Pakistan

Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

Spring 2020

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Keywords

Solar lighting Business -- Strategy | Solar business -- Pakistan

Executive Summary

Pakistan is facing energy shortages especially in Power sector for last two decades resulting in frequent 12 to 16 hours long load sheading in all over Pakistan. Government of Pakistan has taken measures on extending grid and harnessing renewable energy. Newly elected government and development institutions have drawn up an ambitious plan, set out in the World Bank's Country Partnership Strategy for 2015-2019. Key targets of the plan to be achieved by 2020 include: • Increase power generation from current 21,000 MW, to 32,000 MW • Reduce average cost of generation from current $0.12 / kwh to $0.10 / kwh • Increase share of renewables from current 30% to 50% in generation capacity, primarily through hydro, wind, and waste-to-energy [World Bank, CPS, 84645] Pakistan receive high level of solar radiations. Power shortages and high costs of fuel suggest that there is a strong potential and an increasing appetite for solar applications in Pakistan. However, Due to lack of financing, infrastructure and enabling policies solar market is not fully developed in Pakistan. Further there is lack of confidence on solar products due to failure of previous experience in this area. Previous government efforts were not very successful in off-grid electrification due to lack of knowledge and quality controls. Government has given tax exemption on solar panel and its related components. But in absence of effective quality controls, the market has been flooded with substandard products and results in reducing of customer confidence. This report uses exploratory approach, surveys and interviews, to identify key factors while defining solar lighting strategy in Pakistan and it is written primarily for Philips Pakistan. Data from 100 different individuals is taken and analysed to come up on final suggestions.

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