ISLAMABAD: Prime Minister Shehbaz Sharif has directed Power Division to comprehensively review the base load power requirements and prepare a comparative analysis of the cost (financial, administrative, legal and technical) of pre-mature retirement of low efficiency power plants currently available on the merit/ dispatch order against the cost of adopting Solar/ renewable power, sources told Business Recorder.
These directions were issued at a meeting on IGCEP, a committee on solar power, floating solar and Saudi company, ACWA power projects and Gencos decommissioning.
According to sources, the meeting discussed benefits of recently announced winter package for electricity consumers across the country specially consumption by the industry.
PM Shehbaz calls for immediate shutdown of inefficient power plants, pushes for renewables
Prime Minister directed Minister for Power Awais Leghari to share weekly updates on the electricity off-take under the subsidy-neutral Winter Incentive Package notified, after getting approval of International Monetary Fund (IMF).
The government had requested the IMF for a period of five months for the winter package but the later agreed on only two months; i.e., December 2024 and January 2025.
Prime Minister also directed Power Division to dispose of dead assets of all the redundant Generation Companies (CENCOs) through open auction with live media coverage, according to previously issued directives of the PMO.
The sources said the Prime Minister took serious note of non-cooperation by the CPGCL’s top management in disposal of Gencos’ dead assets.
Power Division has also been directed to complete the process of restructuring of the National Transmission & Dispatch Company (NTDC) at the earliest and launch the Independent System and Market Operator (ISMO), NTDC-Assets and NTDC-Grid by completing all codal formalities.
The meeting discussed current status of solarisation in the country and its key projects. It was decided that the Committee on Solar Power to review and analyse further the availability of additional capacity Solar in both on Grid/ Off-Grid, as well as, utility scale plants and present same to the Prime Minister.
During discussion on storage of water resources in the country, the meeting directed Ministry of Water Resources to prepare a comprehensive water storage plan and its financials costs and funding sources for the review of the Prime Minister. Ministry of Water Resources has been further directed that the financing proposal shall avoid parking costs in power tariff.
On the rolling out of the new regulatory regime of the Solar Net-Metering Initiative (announced in 2017 to encourage solarisation at rooftops) before the summer of 2025, the Power Division in coordination with the Ministry of Information & Broadcasting (MoI&B) will initiate public debate and prepare a comprehensive media campaign for public outreach to explain the contours of the new regulation in alignment with regional and international trends.
The Prime Minister directed the Minister Power to suspend the officials involved in delaying the disposal of dead assets of all redundant GENCOs and absorption/ retirement of Human Resources as per already issued directions of the Prime Minister.
Following the directives of Prime Minister, Power Division has suspended Chief Executive Officers (CEOs) of three power Generation Companies (Gencos) after Prime Minister Shehbaz Sharif’s ire against the officials who created hurdles in disposal of dead assets of Gencos.
The three CEOs who have been suspended are; (i) Abdul Vakeel, CEO, JPCL (Genco-1); (ii) Junaid Ahmed Baig (Genco-II) and (iii) Sabeeh Uz Zaman Faruqi (Genco-III). A Committee has also been to be constituted to discuss the way forward on strategic hydro and nuclear power projects keeping in view the Integrated Generation Capacity Expansion Plan simulations.
Copyright Business Recorder, 2024
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