Pakistan and Denmark are likely to sign agreement under Danish Energy Transmission Initiative (DETI) during the visit of Danish Minister for Development Cooperation and Global Climate Policy, Dan Jorgensen, well informed sources told Business Recorder.
The pact will be signed by the Danish Ambassador to Pakistan Jakob Linulf and Secretary Power Division, Rashid Mahmood Langrial on February 7, 2023 (tomorrow).
According to the agreement, a total budget of 2 million DKK has been approved for DET|-activities in Pakistan including technical advice from DEA, Energinet and International consultants.
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Danish Minister will also meet Minister for Power, Khurram Dastgir Khan and discuss issues being faced by Danish companies which have established renewable energy projects. Prime Minister Office has already directed Power Division to sort out issues of Danish companies.
The objective of this project phase is to continue strengthening capacity within the Pakistani energy authorities to develop choice awareness and long-term energy planning for optimized use of grid connections in hybrid system and reduced curtailment of Variable Renewable Energy (VRE).
The project phase will combine the competencies of DEA and Energinet supported by international consultants in close dialogue with identified managers and technical staff at NEPRA, AEDB, NTDC, NPCC and CPPA and give direct support to accelerate implementation and integration of VRE in Pakistan.
DEA and Energinet with support from international consultants have successfully collaborated with the partners since mid-2021 under DETI in Pakistan. In total three high level missions and 4 technical missions have been conducted to share with relevant Pakistani energy authorities’ recommendations and learning from the Danish energy sector including conducting capacity development through workshops, bilateral meetings, and trainings.
The general takeaways during the previous project phase are: DETI-project is anchored at high-level in MoE and with Pakistani Energy Authorities (e.9. AEDB, NEPRA, NTDC, NPCC, CPPA).
In August 2020 the Government of Pakistan approved an ambitious policy for alternative and renewable energy (ARE). Under this policy, Pakistan is to progress from 4% renewable energy in the energy capacity generation mix in 2018 to 20% renewables in 2025 and 30 percent in 2030 distributed on 2/3 from sun and 1/3 from wind energy. Renewable energy capacity is expected to expand by as much as 7,000 MW by 2025. By 2030, 60% of all electricity produced in Pakistan is to come from clean sources.
In the Indicative Generation Capacity Expansion Plan (IGCEP 202-2030) 69% of the capacity in the power sector and 77 % of energy in 2030 is projected to be produced from carbon free sources including hydro energy. Carbon emissions in the country by power generation accounts for 0.353 kg-COs/ kWh in the year 2021 and this indicator reduces to 0.202 kg- COs/ kWh by 2030. At the UN climate Summit 2020 Pakistan also announced that no more coal power plants would be approved as Pakistan will move towards renewable energy.
The project will increase confidence and capacity of the energy authorities (e.g. NEPRA, NTDC /NPCC, CPPA-G and AEDB) to develop the necessary regulatory frameworks and tools (e.g. grid codes, forecasting of variable renewable energy, thermal flexibility) to support government policy targets on renewable energy. Activities include review of the draft Grid Code 2022, submitted to NEPRA by NTDC for approval, to ensure that technical side of the power sector is aligned with the best international practices.
