Thermal power producers: Capacity payments have eaten up anti-theft government efforts

The government has acknowledged that capacity payments to thermal power producers have eaten up all the efforts of the present government against theft and its recovery drive, as two-day consultations on new draft Renewable Energy Policy started here on Thursday. An official said that there was considerable reduction in line losses during the last one year and recovery of old receivables increased but most of the gains achieved by the efforts of the government were consumed by the new phenomenon of capacity payment in the power sector. The capacity payment has been increasing because the additional capacity could not be utilised for various factors.
Speaking at the final round of two-day consultations on finalisation of new draft renewable energy policy, Chairman Prime Minister's Task Force on Energy Nadeem Babar stated, "The capacity payments to the thermal IPPs during the last fiscal year have almost eaten up efforts of present government against theft and recovery drives resulting in the highest-ever recovery figures."
He added that carbon footprints of the country at present cannot be ignored particularly when Pakistan stands among top 10 countries with the highest environmental changes risk.
Babar further stated that basic driving force behind developing the new Renewable Energy Policy is that during the fiscal year 2018-19, 40 percent electricity was generated through imported fuels which is highly unsustainable for the country's economy, especially when there are abundance of indigenous resources at disposal.
In its first session on Thursday, consultation among key stakeholders from public sector, including Power Division, provincial governments, NEPRA, PPIB, NTDC, CPPA, NEECA, Pakistan Engineering Council and distribution companies, was co-chaired by Chairman Prime Minister's Task Force on Energy Nadeem Babar and Secretary Power Division Irfan Ali. Chief Executive Officer, AEDB Dr Rana Abudul Jabbar Khan introduced all the participants of the meeting. He also presented the draft of the new Renewable Energy Policy in the meeting for discussion.
The secretary Power Division emphasised the importance of new Renewable Energy Policy in present day situation and stated that technologies on one side are fast developing while the cost is continuously lowering. He said that electricity basket is tilted towards thermal imported fuels and emphasised the need to increase 4% of the renewable energy in the basket to 20 percent by year 2025 and 30 percent by year 2030.
There is a need to develop and harness to the maximum level indigenous renewable energy resources to move towards energy security in the country and to decrease the impact of thermal generation on environment. The induction of renewable sources in the wake of sharp decline in its cost would help decrease the electricity prices in the country, he added.
He said that the government is striving to assign major role to the federating units in major decision-making processes regarding planning and feasibilities of projects by introducing concept of steering committee with membership of all federating units and the federal government in the under-discussion draft new energy policy.