Cheap Electricity at PKR. 14.5 Per Unit Should be UtilizedAtif Ikram Sheikh
Karachi: Mr. Atif Ikram Sheikh, President FPCCI, has urge to prioritize immediate and complete off take of power from existing, operational and cheapest 12 wind power projects; wherein these wind power plants are producing electricity at a cost of 14.5 rupees per unit. This aligns with both the Renewable Energy Policy 2006 – pursuant to which local and foreign investment had taken place – and the existing energy purchase agreements (PPAs).
Mr. Saquib Fayyaz Magoon, SVP FPCCI, maintained that recently K-Electric has showcased its efforts to achieve a 30 percent share of renewable energy generation in its mix by 2030. Authorities should take some steps to dispatch electricity from these cheapest 12 wind power projects to KE network since transmission infrastructure is available between NTDC’s Jhimpirt-II grid station to KE’s KDA transmission infrastructure; which will prevent the wastage of cheap electricity and utilization of such cheap electricity will give a sigh of relief to common public.
Mr. Asif Inam, VP FPCCI & Chairman APTMA, has voiced serious concerns that amidst the sweltering heat of summer, the general public is grappling with frequent load-shedding; causing immense discomfort and disruption to daily life. Paradoxically, the government is imposing generation curtailments on wind power plants that are producing electricity at a cost of PKR. 14.5 Per kWh. This practice has raised concerns and sparked debates about the inefficiency and mismanagement in the energy sector; especially, when clean and affordable energy resources are being underutilized. Such actions not only undermine the potential of renewable energy; but, also exacerbate the challenges faced by citizens during peak summer months.
Mr. Asif Inam further added that NTDC failed to evacuate the cheaper electricity generated by wind power projects in Jhimpir Sindh; through the HVDC Matiari-Lahore transmission line to the load center of Punjab; owing to which it is getting electricity from power plants in Punjab at higher much tariffs. This is how the end consumers were forced to pay higher prices under the monthly fuel adjustment mechanism.
Mr. Fawad Jawed, Convener of FPCCI’s Central Standing Committee on Renewable Energy, apprised that cheaper electricity from renewable energy plants are being curtailed; which is also against the special investment facilitation council (SIFC) clean energy policy. Mr. Fawad Jawed further added that alternative energy power producers appreciate SIFC’s efforts to seek investment for renewable energy projects. However, it is imperative for SIFC to acknowledge the prevailing ground realities faced by cheapest 12 wind power projects; which are facing significant challenges to their long-term financial viability and sustainability.
Mr. Fawad Jawed told that the wind projects were set-up via substantial foreign investment from renowned DFIs, multilateral agencies and international partners; providing debt and equity financing; including leading names such as World Bank’s International Finance Corporation (IFC), UK Government’s British International Investments plc (BII) and Islamic Corporation for Development (ICD) to project sponsors in Pakistan. The phenomenon boosted the country’s economy and energy sector and created employment opportunities. He alerted that failure to address these curtailment issues will create difficulties in attracting domestic and foreign investment for the future renewable energy projects in Pakistan.
