ISLAMABAD: The Saudi power producing company ACWA Power on Sunday expressedits willingness to invest around $ 4 billion in Pakistan’s renewable energysector.
The intention to this regard was expressed during a meeting between a Saudiinvestors’ delegation led by ACWA Power Chairman Mohammad A Abunayyan andthe Pakistani side headed by Minister for Finance Asad Umar here at theBoard of Investment (BoI).
Advisor to Prime Minister on Commerce, Industry and Textile Abdul RazzaqDawood, Minister for Power Omer Ayub Khan and BoI Chairman Haroon Sharifrepresented Pakistan.
Speaking on the occasion, Mohammad A Abunayyan said the ACWA Power was adeveloper, investor, and co-owner of portfolio of power generation anddesalinated water production plants in countries in the Middle East, NorthAfrica, Southern Africa and South East Asian region.
He said his company was keen to invest in Pakistan’s energy sector,particularly in renewable energy as there was huge investment opportunityfor production of cheap energy to fulfill the growing local demand.
Welcoming the Saudi delegation, Finance Minister Asad Umar lauded thebeginning of renewed relationships between Pakistan and the Kingdom ofSaudi Arabia.
Later talking to media persons, the finance minister said the visit ofSaudi Crown Prince would help open new avenues of bilateral trade andinvestment.
He said the existing bilateral economic relations did not reflect the truepotential. However, after the visit, a huge investment was expected fromSaudi Arabia which would help further strengthen the trade ties between thetwo countries.
He said the Saudi company had excelled in advance solar power technologyand they were keen to invest in Pakistan’s renewable energy sector to helpreduce its reliance on expensive energy sources.
The minister said now the prices of renewable energy technology had alsocome down, which would help produce cheaper energy in the country.
“Pakistan has been facing the crisis of current account deficit for longtime mainly due to import of huge quantity of petroleum products to fulfillthe country’s energy requirements,” he said. With the establishment of anoil refinery with the help of Saudi Arabia, Pakistan would be able toovercome the crisis as it would save foreign exchange, he added.
Minister Omer Ayub Khan said the government was formulating a policy onrenewable energy to enhance its reliance on renewable energy mix fromcurrently 4 percent to 30 percent by 2030 which would create investmentspace of over $ 55-60 billion.
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He said currently the government was the only buyer and seller of energy.Pakistan was opening its energy market for foreign investment to minimizeits reliance on costly energy mix, he added.
“We have planned to increase the ratio of renewable energy in our existingenergy mix from 4 percent to 30 percent to over by 2030,” he said.
The minister said the Saudi company was one of the world’s leading firms inrenewable energy and it would help Pakistan in installing state of the artsolar energy technology.
Pakistan’s energy generation would go up to over 55,000 MW in 10 yearswhich would need huge investment, especially in the renewable energysector, he added.
“Power generation sector requires around $38 to 40 billion, transmissionsector $7 to 8 billion and the distribution sector $8 billion over the next10 years,” he remarked.
He said CSP was an advance technology in solar energy production and thegovernment would negotiate with the Saudi company in that regard.
He said the government was bringing a policy to shift in its energy mixwith addition of renewable energy and the sector had greater investmentopportunities.
He said up-gradation of renewable energy technology would help providecheaper energy and reduce reliance on expensive energy mix comprising ofoil and gas and was consuming huge foreign exchange reserves of the country.
He said alternative renewable energy would also help provide cheap energyto the industrial sector, which in return would produce competitiveproducts ultimately increasing the country’s exports.
