Sindh, Islamabad lock horns over proposed renewable energy policy

ISLAMABAD: Tussle between the federal and provincial governments started to reemerge with Sindh administration complaining that it was not taken onboard on the proposed renewable energy policy – a claim that was rejected by Islamabad.

Sindh ministry of energy rejected the proposed renewable energy policy, saying the Alternative and Renewable Energy Policy (ARE Policy) 2019 was formulated without the province’s consultation. The government has not been convening the Council of Common Interests (CCI) for the last one year, it said.

Ministry of energy on Friday refuted the provincial government’s statement. The federal cabinet approved the policy and it will now be places before CCI, represented by all four provinces, for approval, it said.

Energy ministry spokesperson said the draft ARE policy 2019 along with the comments / recommendations received from the board members, including all provincial governments were again placed before the AEDB board in its 46th AEDB board meeting last month.

The AEDB board approved the draft ARE Policy 2019 with the incorporation of majority of the recommendations suggested by the board members, specifically by governments of Sindh and Punjab. “The minutes were subsequently confirmed in AEDB Board meeting held on October 31, 2019,” the spokesperson said. “Chairman AEDB board (federal minister for power) particularly on the occasion asked the Secretary Energy Sindh for his approval of the minutes three times and the Secretary Energy Sindh answered three times confirming the same.”

The government has targeted achieving 20 percent capacity from ARE technologies by 2025 and 30 percent capacity by 2030.

However, Sindh government said it has completed paperwork 6,000 megawatts of power projects.

“The federal government is creating obstacles into the project’s progress,” Imtiaz Shaikh, provincial energy minister told a media briefing.

The ministry’s spokesperson said role of the provinces in all future approvals and implementation of renewable energy projects is prominent and pivotal.

Consequent to expiry of RE Policy 2006 in March 2018, AEDB initiated the formulation of a new policy in view of government’s decision to come up with a policy aimed at creating a conducive environment supported by a robust framework for the sustainable growth of renewable energy sector. Meanwhile, Minister for Power and Petroleum Omar Ayub said the renewable energy policy, unanimously approved by the AEDB board where all provinces have highest level representation, envisaged a greater and lead role of all the provinces both at the decisions and its implementation levels regarding the competitive process for new renewable energy projects in the country.

Ayub said Pakistan embarked upon taping huge indigenous potential of renewable energy.

“By year 2025, the current share of 4 percent of renewable energy in overall energy mix will be enhanced to 20 percent while by year a target of increasing the same to 30 percent has been set in the policy, which is around 20,000 MW,” the minister said in a meeting with Ambassador of Denmark Rolf Holmboe. The government is expecting gradual decrease in the electricity prices as the new projects with lowest per units cost start production, he added.