Power division nudged to finalise renewable energy policy

ISLAMABAD: The Cabinet Committee on Energy (CCOE) on Monday directed the power division to expedite finalising of new renewable energy policy.

CCOE was apprised about the progress on the formulation and approval of the renewable energy policy and the introduction of competitive bidding process for the entry of new producers in the renewable energy sector of Pakistan.

The meeting, presided over by Minister for Planning, Development and Special Initiatives Asad Umar, directed the power division to expedite the process and report back the committee.

The policy envisaged 25 percent of total generation capacity from alternative and renewable energy technologies by 2025 and 30 percent by 2030.

Pakistan has only 5 percent of its total power generation from renewable sources -mainly from wind, a bit from solar and a bit from bagasse as captive power plants at sugar mills. The government has decided to move to a renewable energy-reliant economy by 2030 in which hydropower would be the backbone. This would require the development of additional generation capacity of 20 gigawatts of hydropower, wind and solar to keep pace with the demands of a growing economy.

The cabinet committee further approved the proposals of the ministry of power regarding the placement of various project companies in their respective categories on the basis of already specified criteria.

The meeting was apprised about the future trajectory of demand of energy in the country and the steps being taken to ensure the availability of power to various sectors and the progress being made on rationalizing the energy prices in the country.

National Electric Power Regulatory Authority (Nepra) apprised the meeting on the progress made on the introduction of the advance design of the competitive trading bilateral market in Pakistan.

The CCOE was briefed about steps being taken regarding the governance improvement of the power sector. It was informed that chief executive officers of Alternative Energy Development Board, Private Power and Infrastructure Board, and generation companies have been appointed following a competitive process. The progress is made regarding the establishment of a technical directorate at the ministry of energy.

Ministry of Maritime Affairs submitted its report regarding the enhancement of off-shore storage capacity of imported petroleum products. The CCOE directed the petroleum division to examine the financial feasibility of the proposals.

Members of the CCOE, including ministers for railways, energy, and maritime affairs, adviser on finance Hafeez Sheikh, special aide on petroleum Nadeem Babar, and officials from the power, petroleum, finance, maritime division and Nepra were also present.