LAHORE: President Pakistan China Joint Chamber of Commerce and Industry (PCJCCI) urged to cancel all agreements with Independent Power Producers (IPPs) and start procuring electricity from cheaper sources without any capacity charges.
The consensus was established in a think tank session of the Pakistan China Joint Chamber of Commerce and Industry (PCJCCI) held here on Thursday at Chamber Secretariat. Despite vast potential for solar energy, Pakistan has only scratched the surface of its capabilities.
The country is blessed with abundant sunshine, making it an ideal location for solar power generation. In other countries solar is available in 4 cents but in ours the government is selling 13 cents, so we should come together and think about this.
Pakistan’s government, recognizing the importance of renewable energy, has introduced favorable policies and incentives to promote solar energy development. The China-Pakistan Economic Corridor (CPEC) has also played a crucial role in fostering solar energy cooperation between the two countries.
Moazzam Ghurki President PCJCCI highlighted that the pending Rs2 trillion capacity payments to IPPs have paralyzed the country’s economic activities, urging the government to take decisive action before the prevailing desperation leads to total economic collapse.
Fang Yulong, Senior Vice President PCJCCI highlighted that China is large-scale development of solar power, coupled with continuous innovation and a complete industrial chain, is driving down production costs and making new energy products more affordable globally.
This shift benefits the global community, whose current solar capacity still falls short of quantities needed to achieve decarbonization goals. Developing nations in particular require more advanced solar capacity to make electricity more accessible and cost-effective for both households and businesses.
Hamza Khalid, Vice President PCJCCI added that the recent surge in electricity rates would trigger civil unrest and discontent among the business community if no timely action is taken by the government. He supported S.M Tanveer’s request for a comprehensive review of IPP agreements, price re-evaluation within legal bounds, and improved oversight to prevent over-invoicing.
Salahuddin Hanif, Secretary General PCJCCI added that China, with its abundant resources, innovative technology, and extensive global relationships, could significantly contribute to achieving Pakistan’s solarization target.
Copyright Business Recorder, 2024