The chairman, Alternative Energy Development Board (AEDB), Air Marshal Shahid Hamid (Retd) has said that micro-mini hydel power policy would be ready by mid-August to meet alarming energy shortage. He was addressing the concluding session of a three-day workshop on 'Making Micro-Mini Hydel Power Projects Attractive for Investment', organised by the AEDB in collaboration with the German Agency for Technical Co-operation (GTZ).
He said that micro-mini hydel projects (MHP) have the capacity to generate 1,000 MW, which is untapped. Shahid Hamid admitted that for the private sector, micro-mini hydel was not a preferring option for investment. This trend has to be changed, and the AEDB is taking steps to create an enabling environment for the private sector to invest in it.
The AEDB recently completed a technical assistance programme with the Asian Development Bank (ADB) in which eight small to medium hydel sites, with a total capacity of 75 MW, were identified in NWFP and Punjab. These projects could not attract the private sector since the IRR was under 15 percent. Hence Shydo and the Punjab irrigation and power department would benefit from the ADB loan and execute the projects, in the hope that the private sector would take over the operation.
The AEDB chief said that need exists to examine the micro-mini hydel projects as a complete package from the developer perspective.
He said that issues of transfer of technology, policy and regulatory framework, licensing procedures, power purchase agreements, feed-in tariff structure, financial structures/techniques are continuously being examined and addressed by AEDB with the aim to attract the private sector to invest in the MHP. This workshop, he said, is part of their efforts to sort out these issues, he added.
Earlier, he said no regulatory system for MHP existed in Pakistan. These mini hydel projects will provide electricity to off-grid rural areas. Now formulation of a coherent policy for promotion of MHP is a must.
He was positive that AEDB would be able to formulate a conducive policy by mid-August, with the help of recommendations from all stakeholders, including provinces. He said that distribution companies may take another month or two for giving final shape to the policy.
Apart from being economical and environment-friendly, this power generation policy, he said would also assist in the socio-economic uplift of the community, adding the AEDB is there to assist in forming policy and facilitating the investors for up to 50 MW projects.
Earlier, Pakistan Council of Renewable Energy Technologies (PCRET) Director Majidul Hassan, in his presentation, talked about some 340 small hydel projects in the northern part of the country, which are of 3 kW to 50 kW capacity. These projects are catering energy needs for about 45,000 houses, he added.
He said that his department also provides design and technical assistance to local turbine manufacturers and encourages and motivates community to participate in installation of micro-mini hydel projects. Meanwhile, he stressed the need for capacity building of human resource and manufacturing units.
Apart from international consultants from Germany and Nepal many stakeholders, including government departments, manufacturers, consultants and investors attended the workshop with their complete involvement.