The allegation of the Private Power Infrastructure Board (PPIB) regarding the government's priority to the Alternative Energy Development Board in the allocation of financial resources, appears to be based on certain misconceptions. PPIB's contention is that this is hindering even the feasibility studies being carried out for new power projects.
Reference to this has been made, in a BR news report (October, 31) to the organisation's release of October 27, highlighting impediments in the implementation of the power projects under the 2002 power policy.
Pointing out that it is currently processing 36 projects of cumulative generating capacity of about 9895 MW, at an estimated cost of $10 billion, it has lamented that certain impediments are delaying implementation of these projects, while sufficient finances are being made available to AEDB. Needless to point out, the allegations may create the impression of some kind of step-motherly treatment is being meted out to it.
As for the impediments in its way, these have been identified as regulatory issues, delayed tariff negotiations with power purchasers, non-availability of gas on long-term basis from SNGPL/SSGC, insufficiency of quality professionals. Regarding regulatory issues, PPIB said that Letters of Interest (LoI) were issued to 123 MW Star Power Project (SPP) at Jarwar and 200 MW Orient Power Project at Balloki on February 13 and 16 last year, with the validity of one year.
However, it has been maintained that after completing feasibility study and tariff negotiations with Wapda, their request to Nepra for approval of tariff determination was badly delayed until August 30 last, with sponsors still having certain reservations and reasons to demand other concessions.
Again, pointing out that all the sponsors and prospective lenders were monitoring the decisions of the power regulator, and unsatisfactory tariff determinations, PPIB is reported to have expressed fears of failure of power generation policy, and that it could discourage investment in power generation.
Referring to non-availability of gas, on long term basis, from SNGPL and SSGC, among the other impediments, PPIB has contended that the Petroleum Ministry had assured availability of 94 MMCFD gas, which would suffice for only 450 MW generation, against the country's feared cumulative power shortage, in 2010-11, of 5500 MW. As such, it has expressed the fear that continuation of the trend could lead to failure of future power projects, ultimately resulting in power crisis in the country.
Moreover, PPIB is stated to have pointed out that due to non-competitive salary structure, professionals were leaving the organisation, while the quantum of work in the organisation has increased manifold owing to overwhelmingly good response to Power Policy 2002. All in all, understandable at least are some of its concerns. However, it will be noted that the problems now listed, viewed in the perspective of other causes of the country's long unresolved energy problem, will point to increasing reliance as now being placed on alternative energy sources as assigned to the AEDB.
In so far as the vital role of the AEDB is concerned, it should leave little to doubt, with the promulgation, in August, of the Alternative Energy Development Board Ordinance, to provide for its establishment as an autonomous body for the purpose of implementation of various policies, programmes, and projects in the field of alternative or renewable energy technologies, with the objective to facilitate development of renewable energy in order to achieve sustainable economic growth.
Reference, in this regard, may, specifically, be made to the launch in July this year of a joint Rs 4.5 million project by UNDP, the AEDB, and the German Technical Assistance Agency (GTZ).
Aimed at developing a methodology for productive use of energy in Northern Pakistan, it was conceived as a part of the overall rural development strategy for the Northern Areas of Pakistan, where poverty alleviation and protection of the natural resources figure among the main goals. Moreover, the project seeks to identify sites where the micro hydropower generation could be feasible for distribution among rural communities not connected with the national grid. The project is aimed at increasing the income-generating activities of poor communities.
It will also be noted that among renewable energy supply options, micro hydro generation is considered as one of the most viable to provide energy to the remote villages, and to promote income-generation activities, particularly in the mountainous northern parts of the country.
It also seeks to support Pakistan's efforts in meeting its commitments under the global conventions, including the UN Framework Convention on Climate Change. More to this, it will also help increase the share of the renewable energy in the total energy generation, which at present stands at no more than mere 10 percent of total energy generated in the country.
The AEDB's stress on micro hydropower generation, among other sources, should enormously help in the fulfilment of power needs in the reconstruction activities in the widespread quake-ravaged parts, while also providing increased opportunities for communal integration, social cohesion, and increased environmental awareness. It will also be noted that AEDB, cannot be viewed as being in competition with PPIB, as the two are operating in distinctly different fields, the former making only supplementary efforts, to make up for massive energy deficiency.