NEPRA approves IGCEP 2021-30, envisions RE share of 60 percent

ISLAMABAD: NEPRA has approved the first ever Indicative Generation Capacity Expansion Plan 2021-30 (IGCEP-2021) under provisions of the National Transmission & Despatch Company (NTDC) grid code, and envisions increasing renewable energy share in total mix to 60 percent.

The landmark IGCEP document that covers a planning period of 10 years would be revised every year. It would act as a primary document for adding new capacity for power generation to meet future demand “in a scientific and systematic manner thus avoiding the boom and bust cycle which we have experienced in the past”, a statement said on Friday.

According to the IGCEP, the energy mix of the country which was currently highly skewed towards imported fuels including coal, furnace oil and RLNG, would be substituted with indigenous resources including hydel, local coal, bagasse, wind and solar on least cost basis.

The use of furnace oil would be reduced to 2 percent only from the current usage of 19 percent. Similarly, the use of RLNG and imported coal would be decreased to 11 percent and 8 percent from their current usage of 17 percent and 11 percent, respectively.

At the same time, the document envisions massive increase in the contribution of hydropower and other renewable energy resources, including bagasse, wind and solar.

The contribution of hydel, wind and solar, which currently stands at 28 percent, 4 percent and 1 percent, respectively would be increased to 39 percent, 8 percent and 13 percent, thereby increasing the total share of RE to the tune of more than 60 percent.

It is pertinent to mention that on the recommendations of NEPRA, Council of Common Interest (CCI) has approved inclusion of hydro in the RE category, which has resulted in immediate increase in the foot print of RE of Pakistan to 34 percent.

The power regulatory authority feels extremely satisfied that proposed IGCEP was based on exploration of indigenous and RE resources for generation of low cost environment-friendly electricity.

The authority appreciates the efforts of the young engineers of the planning department of NTDC which developed the IGCEP using indigenous capability.

Further, NEPRA recognises the efforts of all other stakeholders, especially the energy departments of the provinces and Power Division of Ministry of Energy which have provided their very useful input in preparing this IGCEP and improving the same.

The authority also recognised and congratulated CCI for approving the initial assumptions for this IGCEP which paved the way for its speedy approval by the regulator.