ISLAMABAD – Minister for Power Division Omar Ayub Khan said that 8,000 MWand 20,000 MW of clean, environment-friendly and cheap renewable energy(RE) will be added to the system by 2025 and 2030 respectively under thenew Alternative Renewable Energy Policy 2019 approved by the federalcabinet.
Addressing a press conference with Special Assistant to Prime Minister onPetroleum Nadeem Babar, the minister said that the share of clean and greenenergy will be enhanced to 60-65 percent of the total energy mix by 2030.
The policy aims to substantially reduce electricity tariffs in the future,he added.
The minister said that the RE sector alone has over $40 billion investmentopportunities, adding that $700 million is being invested in 12 wind energyprojects. The government’s initiatives will help reduce electricity pricesin the future and boost industrial activities resulting in a surge inexports and increased employment opportunities in the country, he said.
Ayub added that under the policy, solar panels and wind turbines will alsobe manufactured in the country with negotiations underway with foreigncompanies. He said the Pakistan Muslim League-Nawaz (PML-N) government had“killed” all RE projects in order to pave the way for setting up expensiveLNG projects.
Regarding the power sector’s performance, the minister said that itsrevenue has jumped to a record Rs. 229 billion. Out of the total amount,Rs. 111 billion was collected by making the system more efficient bycurbing power theft and remaining Rs. 118 billion through tariffs.
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Nadeem Babar said that for the first time in the country’s history, a REpolicy draft has been prepared after consultation with all stakeholders,including the public sector, experts, provinces and international agencies.
“It will be one of the best RE policies as costs and tariffs etc. havecompletely been eliminated,” he said, adding that contracts will be awardedthrough open and transparent bidding processes.
The policy focuses on the local manufacturing of solar panels and windturbines. “As many as three companies, including a Danish company, hasshown interest in manufacturing wind turbines in Pakistan,” he added.
He further said that the government will specify the location for settingup the projects soon.
