Powering Pakistan's Future: Clearing the Path for 700MW Renewable Energy Projects

Pakistan Accelerates Towards a Sustainable Future with Approval of 700MW Renewable Energy Projects

The federal government of Pakistan has given the green light for the implementation of 13 long-awaited renewable energy projects with a total capacity of around 700 megawatts (MW). These projects, known as Category-III projects, encompass solar and wind technologies and have received approval for their tariffs from the National Electric Power Regulatory Authority (NEPRA). The government has also referred the matter to the Council of Common Interests (CCI) for formal approval, highlighting the significance of these inter-provincial initiatives.

Clearance and Committee Recommendations

A special cabinet committee, led by Defence Minister Khawaja Asif and comprising Power Minister Khurram Dastgir Khan, Commerce Minister Syed Naveed Qamar, and Human Rights Minister Riaz Hussain Pirzada, has recommended the clearance of these proposed renewable energy plants. The committee endorsed the sponsors of the Category-III projects, allowing them to proceed with the development of their solar and wind projects. The Cabinet Committee on Energy (CCOE), led by Prime Minister Shehbaz Sharif, supported these recommendations and forwarded the matter to the CCI due to the projects' inter-provincial nature.

Approval Delays and AEDB's Role

Despite NEPRA approving the tariffs for these 13 solar and wind power projects in 2017-18, bureaucratic hurdles have delayed their progress. The Alternative Energy Development Board (AEDB) has claimed responsibility for developing projects listed under Category III as part of the Alternative and Renewable Energy (ARE) policy of 2019. However, these projects have faced delays due to changing government policies, hindering the potential investment of over $600 million.

Government Support for Cheaper and Clean Energy

The ministers and officials involved in the discussions have advocated for the approval and execution of these projects to ensure affordable and clean energy for consumers. They highlighted that the reference tariff approved by NEPRA for a government-sponsored solar power block in Muzaffargarh, Punjab, falls within the same price range as the Category-III projects. The sponsors of these projects, located in Sindh, Khyber Pakhtunkhwa, and Balochistan, argue that they should be allowed to proceed with their plants, providing cheaper and cleaner energy to consumers.

Challenges and Committee Recommendations

The delay in project approvals has been attributed to bureaucratic resistance, despite the viability and competitiveness of the proposed tariffs. Power Minister Khurram Dastgir had initially urged the prime minister to approve the Category-III projects, recognizing their potential for renewable energy generation. However, a special committee was formed, led by Khwaja Asif, to examine the matter further. Minister Riaz Hussain Pirzada expressed frustration with the AEDB's CEO, Shahjahan Mirza, for his lack of progress and bureaucratic approach.

Future Outlook and NEPRA's Perspective

The Category-III projects include advanced-stage wind and solar projects, with completed milestones such as letters of support (LOS). These projects have been awarded NEPRA tariffs ranging from 3.2 to 3.85 cents per unit, which are historically the lowest in Pakistan. Minister Pirzada suggests allowing these projects to move forward, while treating other projects with only letters of intent (LOIs) and land differently. NEPRA has emphasized the importance of conducting proper bidding for the Category-III projects, as mandated by the ARE Policy and April 2019 cabinet decision.

The clearance of 13 renewable energy projects in Pakistan's Category-III marks a significant step toward promoting green energy generation and meeting the country's power needs. With the recommendation for formal approval and the referral to the CCI, these inter-provincial projects have the potential to contribute to affordable, clean energy and reduce Pakistan's dependence on traditional energy sources. Overcoming bureaucratic challenges and ensuring efficient execution will be crucial in unlocking the full potential of renewable energy in the country.