The Alternative Energy Development Board (AEDB) has finalised the first-ever Renewable Energy Policy, which will be submitted to the cabinet for approval in its next meeting, Business Recorder learnt on Friday.
Sources said that the policy envisages promotion of renewable energy resources by encouraging the private sector to investment in wind and micro-hydel projects to meet the galloping demand-supply gap.
The policy has been drafted in consultation with all the stakeholders, including private sector investors, concerned ministries, ie, Economic Affairs Division and Water and Power Ministry, as well as energy experts, the sources said.
The policy emphasises investment in wind and micro-hydel project, identify renewable energy sources in each province, mobilise public sector resources for provision of electricity in far-flung areas through available renewable resources, developing commercial energy service providers in the private sector who may be licensed to operate in certain concession areas for off-grid development of renewable energy and striking deals with the international lending agencies such as the World Bank, Asian Development Bank, GTZ, etc, to exploit sources as well as capacity building arrangements.
The policy framework recognises the need for a long-term review of its development by evolving strategies for immediate term, ie, January 2006 to December 2007, medium-term, January 2008 to December 2010 and long-term, 2011 onwards.
The first phase will create awareness among the stakeholders about the need to develop renewable, identify barriers for development, study support mechanisms employed in other parts of the world, which can be used in our environment.
It has successfully provided guidelines for tariff determination to the National Electric Power Regulatory Authority (Nepra) for evacuation of wind power to the national grid. Nepra on the basis of these guidelines has announced a feed-in tariff of 9.5 per kWh (subject to certain conditions) which has been well received by the private sector investors.
The first phase has also highlighted the interconnection issues with the national grid on account of intermittent nature of power generation. It has also recommended long-term power purchase agreement to ensure the confidence of the private sector investors. The policy also recommends development of model IA, PPA to facilitate speedy implementation of these agreements.
The medium-term will see the establishment and consolidation of renewable energy-specific marketing and financing mechanisms, functional renewable energy monitoring and evaluation system, and a growing indigenous manufacturing and technical capability.
The renewable energy IPPs to be inducted during this period may not be provided the same wind risk/hydrological risk available in the first phase, but may be allowed to operate in a more competitive environment. This is, however, not to suggest that the degree of protection against fossil fuels will not be provided. The impact of positive externalities to justify any support will remain there.
In the long-term policy horizon, renewable energy will be fully integrated within the nation's energy planning, leading towards exposure of renewable energy technology to full competition from alternative sources.
The discriminatory barriers will be removed and externalities will be compensated to the extent possible. Renewable energy used at the rural and urban household level will become widespread, served by an established local manufacturing base leading towards providing an electricity umbrella to the entire population. A mature renewable energy technology and manufacturing base will gain increasing benefits from economies of scale and strengthening R&D capability.
Comments
Comments are closed.