Pakistan is moving towards a major electricity generation to renewable and alternative sources, announced by Omar Ayub, Federal Minister for Energy. The new energy policy has been approved.
Omar Ayub, along with Special Assistant to the Prime Minister on Petroleum Division Nadeem Babar, addressing a press conference, stated that the rate of power generation will be increased by up to 20 percent by using domestic reserves of renewable and alternative electricity projects.
According to the minister, the country will be able to produce (domestically) 60 percent of its electricity by 2030. The Council of Common Interests (CCI) earlier approved the policy.
The bidding process has been initiated for the renewable electricity projects, whereas, the scientists and engineers are busy in preparing power generation equipment locally.
“We will produce power up to 10 percent through Thar coal reserves and up to 60 percent of electricity will be generated through the domestic reserves by 2030. At this time, the power generation is dependent on imported oil and gas. The new energy policy will also help the authorities to reduce electricity tariffs. Low-cost electricity will benefit industries and domestic consumers. Moreover, the power authorities will also produce electricity through the solar system with the assistance of science and technology. The projects for alternative energy production will also create employment in the country.”
The bidding process will be completed in a transparent manner under the new energy policy. Numerous solar energy companies in Pakistan are working in this regard. The previous policies was designed based on the US Dollar’s valuation. He added that the authorities will organize bidding events annually for the renewable energy sector.
Nadeem Babar said:
“The federal government is giving concession on equipment of renewable energy, whereas, the necessary machinery will be prepared locally. The federal authorities will analyze the power demand of the national grid. Three firms including Chinese and European companies showed interest in investment in the sector. Open bidding will be organized for renewable energy projects. The federal government will also include all provinces, Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB). Steps are being taken for technological transfer by the federal government with the assistance of science and technology, whereas, contacts have been made with the foreign companies for wind turbines and solar panels. We are making the best mechanism to overcome the shortage of electricity. The government will import Customs duty and tax-free machinery for the projects and only withholding tax will be applied to it. [Under the new energy policy,] the payments will only be made against the power generation capacity instead of fixed capacity payment. At this time, per unit of renewable energy costs four cents while the open bidding will reduce its cost to three cents.”
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