Experts call for refining conditions to attract Chinese RE investors

KARACHI: Industry experts on Monday called for improving conditions to attract the interest of Chinese renewable energy investors, while highlighting the many challenges and risks like delayed payments, regulatory issues and security problems.

The experts highlighted discourse on redirecting Chinese investment in Pakistan's energy sector from coal to clean energy while speaking at a webinar organised by Renewables First, a think tank for energy and environment. The theme of the webinar was “Accelerating Chinese Renewable Energy Investment in Pakistan”.

The webinar was attended by both local and Chinese audiences. It brought together industry experts, stakeholders and government representatives to discuss the opportunities within the renewable energy market in Pakistan.

During the webinar, the speakers shared their experiences and insights on the topic, providing policymakers with a better understanding of the regulatory and policy environment needed to attract greater Chinese investment in the renewable energy sector.

NEPRA Chairman Tauseef Farooqi underscored the enormous potential for Pakistan to scale up its RE share within the power sector. “We are very upbeat about the potential of Chinese investment in the renewable energy sector. Our Chinese friends have a lot to benefit from the potential of RE in Pakistan,” he remarked.

He also reiterated that Chinese investors had a pivotal role to play and a range of potential benefits in supporting Pakistan in its journey to privatise distribution and modernise transmission, while also adding the cheapest solar and wind to the electricity mix of Pakistan.

Alternative Energy Development Board CEO Shah Jahan Mirza emphasised that Pakistan had immense potential for renewable energy generation, and Chinese investors could play a significant role in its development.

He also highlighted Pakistan’s ambitious goals of RE additions (14,000MW of wind and solar to be added in the next 10 years to the grid) and encouraged Chinese investors to invest in the RE market of the country.

Xiaohui Ma of Golwind which is the leading wind turbines supplier globally, contended that while the regulatory framework and incentive structure was favourable for RE investment, wind power industry had been facing a number of challenges in Pakistan ranging from curtailment from the offtaker to unannounced moratorium on the import of renewable energy equipment hampering the operations of wind power projects.

Ma urged the government to refocus on both wind and solar PV as complementary technologies and develop ambitious plans and frameworks for both the technologies in tandem, to maximise their benefits for Pakistan.

In order to attract more foreign investment in the RE sector, NA Zuberi stressed the need for a streamlined project development process and removal of barriers through close collaboration and effective engagement with stakeholders.

He also urged for private sector investment in transmission and distribution as a solution to a bottleneck of greater RE integration.

“There remains a greater need for inclusivity and gender diversity in the RE market,” pointed out Tara Dawood, who is the Chairperson of Ladies Fund. She also encouraged women’s participation within the RE sector and urged developers to ensure that their voices were heard within decision-making processes.