The Executive Committee of the Special Investment Facilitation Council (SIFC) has issued directives to the Private Power and Infrastructure Board (PPIB) to expedite the competitive bidding process for 300 MW of category-III wind projects within a week. This move comes as part of efforts to enhance Pakistan’s renewable energy sector and reduce dependency on imported fuels.
While category-III solar projects are deferred pending the finalization of the Indicative Generation Capacity Expansion Plan (IGCEP) and Transmission System Expansion Plan (TSEP), the focus remains on advancing wind energy initiatives. The decision follows concerns raised by stakeholders about the slow progress in renewable energy projects despite previous approvals.
The absence of new wind or grid solar projects since 2017 in Pakistan contrasts with significant advancements made by neighboring countries like India and China. Stakeholders highlight the potential benefits of installing 10,000 MW of wind and solar projects, estimating potential savings of $2-3 billion annually in fuel import bills.
The discontinuation of the ARE-2006 policy in 2017 and challenges posed by subsequent policies have hindered the development of future wind and solar projects. Despite the approval of tariffs for thirteen wind and solar projects by NEPRA between January and August 2020, progress has been sluggish, delaying potential investments totaling $600 million.
The SIFC EC also directed the Power Division to comprehensively address issues faced by all 47 Letter of Intent (LoI) holders, with special consideration for projects sponsored by foreign and Korean investors. The emphasis is on streamlining processes to facilitate the realization of renewable energy projects and ensure affordable electricity for consumers.
The directives underscore a concerted effort to revitalize Pakistan’s renewable energy sector, aligning with broader goals of energy sustainability and cost-efficiency. By prioritizing renewable energy initiatives, Pakistan aims to diversify its energy mix, reduce reliance on fossil fuels, and enhance energy security in the long term.
