IGCEP: Long-term expansion plan approved by CCoE

ISLAMABAD: After detailed consultations with all the provincial governments, the Cabinet Committee on Energy (CCoE) approved the long-term Indicative Generation Capacity Expansion Plan (IGCEP) 2021-2030.

In this regard, a meeting of the CCoE was held under the chairmanship of the Federal Minister for Planning, Development, and Special Initiatives, Asad Umar, here on Thursday.

Under the approved IGCEP, the generation mix of 2022, which is dominated by fossil fuel, will shift to clean energy (hydel, solar, wind, nuclear) by the year 2030.

Moreover, for the same period, the indigenous fuel-based generation against the imported fuel-based generation is going to improve from 69 percent to 87 percent of the total fuel-based generation.

The Power Division presented the Indicative Generation Capacity Expansion Plan – known as IGCEP 2021-30, an indicative annual plan prepared by the National Transmission and Dispatch Company (NTDC) as per the National Electricity Policy (NEP) approved by the CCI.

CCoE likely to approve ‘IGCEP’ today

The IGCEP envisions the commissioning of a portfolio of new generation projects including many hydropower projects, Thar coal-based projects, K-3 nuclear power plant, and over 4,000MW of solar and wind-based renewable energy projects.

All the federal and provincial projects already under implementation will be completed as per the commitments.

There was consensus on the principle of new generation capacity addition only based on the least-cost basis.

According to press release issued by the Ministry of Planning, Development and Special Initiatives, 88 percent of the total capacity will increase from 2022 to 2030, which will come from indigenous fuel and the balance is only for those projects which were committed prior to this government coming into power.

Fossil fuel has more than 50 percent share of generation capacity right now; however, in the 2022-2030 period the share of fossil will be only 25 percent. So, therefore, all the new project commitments are based on indigenous fuel.

Such planning will target optimum future capacity addition at the most affordable cost, ensuring the cheapest electricity for consumers.

CCoE to consider revised assumption inputs for IGCEP

The CCoE as also briefed by the Federal Investigation Agency (FIA) on the progress of the investigation of the shortage of petroleum products in the country in June 2020.

The Committee; however, showed concerns over the delay in report finalisation.

The FIA briefed the committee on the progress made so far, and ensured that substantial progress on findings will be shared with the CCoE by end of September.

The meeting was attended by Minister for Finance, Minister for Interior, Minister for Energy, Minister for Maritime Affairs, Minister for Railways, Minister for S& T, Finance Minister KP, and SAPM on Power, Petroleum and Revenue.

Representatives of regulatory authorities and senior officials of ministries/divisions were also present.

Copyright Business Recorder, 2021