FPCCI calls for end to wind power curtailments

KARACHI: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has raised serious concerns over the ongoing curtailment of 12 wind power projects, despite their lower tariffs.

In the interest of the national economy and power consumers, the FPCCI has demanded an immediate and permanent end to the restrictions on these wind projects. In a statement on Wednesday, President of the FPCCI Atif Ikram Sheikh criticised the continued preference for expensive and outdated power sources, urging the government to adhere to the Renewable Energy Policy 2006. He emphasised that the current situation is leading to significant curtailments, causing substantial financial losses for wind energy project developers. These losses are affecting their ability to service debts, maintain operations, and ensure a reasonable return on investment (ROI), ultimately jeopardising future expansion.

Sheikh warned that the ongoing curtailments would severely undermine investor confidence, directly impacting future foreign direct investment (FDI) in the renewable energy sector. “This could lead to project defaults and financial instability,” he added.

He stressed the need for a stable, consistent and supportive environment for renewable energy, aligning with the Special Investment Facilitation Council’s (SIFC) focus on the energy sector.

Convener of the FPCCI’s Central Standing Committee on Renewable Energy Fawad Jawed highlighted the economic and environmental benefits of wind power. He noted that wind energy in Pakistan provides clean, affordable electricity at a tariff of Rs13.8 per kWh -- significantly lower than power generated from RLNG, RFO and coal-fired plants.

Jawed further explained that 12 wind power projects in the Jhimpir Wind Corridor, with a combined capacity of 610MW, have been operational since 2021.

However, despite being

designated as must-run plants under the Renewable Energy Policy 2006, they face frequent curtailments and reduced offtake, resulting in a loss of cheap electricity for the country.

He cautioned that such curtailments undermine Pakistan’s sustainable energy goals and hinder progress towards reducing emissions by 50 per cent and achieving a 30 per cent renewable energy share in the national grid by 2030, as outlined in the Alternative & Renewable Energy Policy 2019.

Jawed also highlighted the economic impact of these curtailments, explaining that wind power plants have the potential to provide exceptionally cost-effective electricity once they reach their capacity factor of around 38 per cent. However, underutilisation prevents these cost savings from being passed on to consumers, he added.