Renewable energy: Minister explains government policy

Pakistan's New Renewable Energy Policy, unanimously approved by the Alternative Energy Development Board (AEDB) where all provinces have the highest level representation, envisages a lead role for all provinces, both at the decision and its implementation levels, for new renewable energy projects in the country.

This was stated by Federal Minister for Power and Petroleum, Omar Ayub Khan in a meeting with Ambassador of Denmark Rolf Holmboe who called on him here yesterday. Secretary Power Division Irfan Ali was also present at the meeting.

The Federal Minister while acknowledging the lead role of Denmark in clean and green energy at the global level said that Pakistan too has embarked upon tapping huge indigenous potential of renewable energy. The new Renewable Energy Policy, which will soon be presented to Council of Common Interest (CCI) for its final approval and implementation, has set ambitious targets in this regard, he added. He said that by year 2025 the current share of 4% of Renewable Energy in overall energy mix will be enhanced to 20% while by year 2030 a target of increasing the same to 30% has been set in the policy, which is around 20,000MW. He said that the government is expecting gradual decrease in electricity prices as the new projects with lowest per unit cost start production.

Omar Ayub Khan apprised the Danish Ambassador that with lowering of electricity cost businesses are bound to take benefit hence overall economic activity will get a boost with creation of thousands of new jobs. Installation of new renewable energy projects alone are expected to bring in handsome jobs for people in Pakistan, he added.

The Federal Minister told Rolf Holmboe that the new Renewable Energy Policy has shifted towards competitive regime based on transparent bidding for new projects in the country.

Omar Ayub Khan invited Danish companies to invest in manufacturing solar panels and wind turbines in Pakistan as the new policy will bring in good returns due to transparent policies of the PTI Government.

Danish Ambassador while appreciating the Government's commitment to raise the share of renewable clean and green energy share to 60% including hydel component, said that the new policy is more transparent as it provides a level playing field for all. He said that Denmark is ready to offer capacity building modules for Pakistani experts in the renewable energy sector. He informed the Federal Minister that Denmark is getting renewable energy at a very low per unit price. He further informed the Federal Minister that Danish companies are closely following developments in Pakistan in the field of renewable energy and are ready to take part in the competitive process.