ISLAMABAD: Power Division Minister Omar Ayub Khan said on Wednesday 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 at a press conference flanked by Special Assistant to Prime Minister on Petroleum Nadeem Babar, the minister said that share of clean and green energy would be enhanced to 60-65 per cent of the total energy mix by 2030.
“The policy aims to substantively reduce electricity prices in the future,” he added.
The minister said that the RE sector alone offers up to $40 billion worth of investment opportunities, adding that $700 million investment has already been made in 12 wind energy projects.
“Besides reducing electricity prices, the government initiatives are also aimed at boosting industrial activities, which would help increase the country’s exports as well as create employment opportunities,” he maintained.
Omar Ayub said that under the policy, solar panels and wind turbine would be manufactured in the country and in this regard, negotiations were already underway with foreign companies.
He blamed the Pakistan Muslim League Nawaz (PML-N) government for killing all RE projects in order to pave way for expensive LNG projects.
Regarding power sector performance, the minister said, the power sector revenue has jumped to record Rs229 billion. Giving the breakup, he said out of the total, Rs111 billion was collected through crackdown against power theft while the remaining Rs118 billion was received through tariff determination.
Speaking on the occasion, Nadeem Babar said for the first time in the country’s history, a RE policy draft was prepared after consultation with all stakeholders, including public sector, experts, provinces and international agencies.
“It would be one of the best RE policies as costs and tariffs etc. have completely been eliminated,” he said, adding that contracts would be awarded through open and transparent bidding processes.
He said special focus [in the policy] was given to the local manufacturing of solar panels and wind turbines. “As many as three companies, including a Danish company, has shown interest in manufacturing wind turbines in Pakistan,” he added.
To a question, Minister Omar Ayub said the RE policy would be sent to the Council of Common Interest for endorsement. To another question, he said around 80 per cent feeders have been cleared from power pilferage while work on the remaining feeders was underway.
He reiterated that no amount was paid in the settlement of Karkey power plant case, adding that the dispute was resolved with the help of Turkish President Recep Tayyip Erdogan.