The Hydro Electric Power Association (HEPA) has urged Prime Minister Shehbaz Sharif to support the inclusion of small renewable energy projects, up to 20 MW, in the upcoming Indicative Generation Capacity Expansion Plan (IGCEP), according to news reports.
In a letter to the prime minister, HEPA Vice Chairman Syed M. Hussain Gardezi stressed that these projects could strengthen Pakistan’s energy mix by providing sustainable, decentralized power, particularly in underserved regions, while reducing transmission losses and enhancing energy security.
Gardezi pointed out that despite their potential, small-scale renewable energy projects face regulatory hurdles that deter local investors and lenders. He called for a policy shift to relax approval criteria, simplify administrative and financial procedures, and ensure that small projects are integrated into national energy planning. HEPA believes these changes would promote economic growth, job creation, and environmental sustainability.
The plea comes as the government finalizes the IGCEP 2025-35, which currently prioritizes ongoing renewable projects and the conversion of imported coal plants to Thar coal. Sources within the Power Division suggest that out of 17,000 MW of proposed projects, only 10,000 MW will be approved. Notably, the Power Division has already declined WAPDA’s 350 MW solar projects planned for Tarbela and Ghazi, while hydropower initiatives from Korean firms remain stalled due to shifting government priorities.
Gardezi emphasized that renewable projects with Letters of Intent (LoIs) or Letters of Support (LoS) issued by federal authorities should not be excluded from IGCEP. He urged the prime minister to ensure these initiatives are not blocked by restrictive policies.
Meanwhile, Power Minister Sardar Awais Ahmad Khan Leghari has made it clear that he will not endorse costly projects unless they are financed through the Public Sector Development Program (PSDP) rather than consumer tariffs. Last week, Power Division Secretary Dr. Fakhray Alam Irfan acknowledged that Pakistan’s power generation capacity is expected to surpass demand in the coming years.
