Improvement in quality of DC fans to open up export opportunities, says World Bank

ISLAMABAD: Improvement in the quality of Pakistani DC fans will increase the international competitiveness of local fan manufacturers and open up long-term export opportunities, as DC motors consume up to 70 percent less power than AC alternatives, and operate more quietly at a lower voltage, says the World Bank.

The bank in its report, “Supporting The Manufacture in Pakistan of High-Quality DC Fans” stated that Pakistan has adopted national standards for AC fans consistent with IEC standards (PS:1 2010); however, there are currently no similar standards applicable to DC fans.

Test methods for performance, durability and safety of DC fans for off-grid applications are also needed. With the assistance of the Collaborative Labeling and Appliance Standards Program (CLASP) and in consultation with key industry stakeholders, minimum performance standards were recommended for DC fans and test procedures specified for the evaluation of metal-bodied DC fans made in Pakistan.

The minimum energy performance standards defined through World Bank assistance (detailed in this report) provide the technical basis for the government of Pakistan to adopt national standards for DC fans through the Pakistan Standards and Quality Control Authority (PSQCA) and the National Energy Efficiency and Conservation Authority (NEECA).

The report sets out a series of recommendations and next steps to build on the World Bank Group’s engagement with the fan industry in Pakistan. With the implementation of these recommendations, the country’s market for DC fans will grow significantly and domestic manufacturers will also be able to capture a larger share of the growing international market for DC space-cooling products.

Government Entities: Conduct a thorough technical assessment of phasing out AC fans to determine market impacts and inform future strategies for transforming the space-cooling fan market, adopt national quality and performance standards for DC fans, and provide support to the industry to transition to DC fans. Explore the potential for a commercially-driven DC fan exchange or rebate program targeting consumers.

Domestic Fan Manufacturers: Engage with the government to achieve a rapid transition from AC to DC fans, invest in R&D and product development to improve energy efficiency and satisfy future requirements, and seek out export opportunities for DC fans.

Development Finance Institutions and Project Implementation Organiza-tions: Implement the performance standards recommended in this report to build the market for DC fans and support government efforts to transition from AC to DC fans with a comprehensive standards and labeling (S&L) program implemented through the National Energy Efficiency and Conservation Authority (NEECA).

In the near term, a DC fan powered by a 150W solar panel is a suitable space-cooling solution for off-grid customers and electricity consumers in areas where the grid is weak and electricity supply is unreliable. The projected growth in sales of DC fans is therefore commensurate with the expected rise in demand for solar panels of 150 to 200W in off-grid and weak-grid areas, with both trends reinforcing each other.

Ongoing energy-access projects in Pakistan are expected to be a key driver for growth in DC fan manufacturing, for example: The World Bank is financing a Government of Sindh project that provides partial grants to 200,000 households for purchase of SHS from a list of eligible suppliers, for which the minimum system requirement includes provision of a DC fan.

Component 3 of the Sindh Solar Energy Project (SSEP) allocates USD 30 million for SHS grants and targets households in priority districts in Sindh with low or no access to electricity, located mostly in rural areas.

The German development bank, Kreditanstaltfür Wiederaufbau (KFW) and the Pakistan Microfinance Investment Company (PMIC) are implementing a program to deploy high-quality SHS and other off-grid solar products in Pakistan; the PMIC-KfW Renewable Energy Initiative through Microfinance (PRIME) program has earmarked roughly €15 million for on-lending to microfinance providers and technology companies selling PicoPV, multi-light and plug-n-play SHS packaged with DC fans that comply with Lighting Global quality standards.

The program aims to provide financing for more than 250,000 solar products over five years.

Copyright Business Recorder, 2022