Renewable energy: 28,000MW to be added to system by 2030: Ayub

Minister for Power Division Omar Ayub Khan Wednesday said that around 8,000MW and 20,000MW clean, environment-friendly and cheap renewable energy (RE) would be added to the system by 2025 and 2030 respectively under the new Alternative Renewable Energy Policy 2019 approved by the federal cabinet.

Addressing a press conference with Special Assistant to Prime Minister on Petroleum Nadeem Babar here, the minister said that the share of clean and green energy would be enhanced to 60-65 per cent of total energy mix by 2030. The policy aimed at substantively reducing electricity tariffs in future, he added.

The minister said that the RE sector alone has over $40 billion investment opportunities, adding that $700 million investment is pouring in 12 wind energy projects. The government initiatives would not only help reduce electricity prices in future, but also boost industrial activities resulting in a surge in exports and increased employment opportunities in the country, he said.

Ayub said that under the policy, solar panels and wind turbines would also be manufactured in the country and for which negotiations are under process with foreign companies. He said the Pakistan Muslim League-Nawaz (PML-N) government had "killed" all RE projects in order to pave way for setting up expensive LNG projects.

Regarding power sector's performance, the minister said the power sector revenue jumped to record Rs 229 billion. Giving the breakup, he said out of total amount, Rs111 billion was collected through system efficiency by curbing power theft, and remaining Rs 118 billion through tariff determination.

Nadeem Babar said for the first time, an RE policy draft was prepared after consultation with all stakeholders including public, experts, provinces and international agencies. It would be one of the best RE policies as cost plus tariff and upfront tariff etc have completely been eliminated, he said adding that contract would be awarded through open and transparent bidding. He said special emphasis was also laid on manufacturing of solar panels and wind turbine locally. As many as three companies including Danish companies have shown interest in manufacturing wind turbines in Pakistan, he added. He further said the government would identify point or place for setting up the projects.

Replying to a question, the minister said the RE policy would be sent to Council of Common Interests for endorsement. The policy aims at reducing electricity prices, he added.

To another question, he said around 80 per cent feeders have been cleared from power pilferage and work on the remaining feeders is under way. No amount was paid for settlement of Karkey power plant issue, he said, adding that the dispute was resolved with the help of Turkish President Recep Tayyip Erdogan.

To a question, Nadeem Babar said that no capacity charges would be paid to RE projects. Secretary Power Division Irfan Ali was also present on the occasion.