Karachi
The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has called upon the government to immediately take full advantage of 12 operational clean energy projects in the Jhimpir-Gharo wind corridor in Sindh so that end-consumers of electricity get uninterrupted power supply at the cheapest rates in peak summer.
In a statement issued to the media, FPCCI President Atif Ikram Sheikh said that maximising electricity output from these 12 wind power plants, capable of producing electricity at a cheaper rate of just Rs 14.5 per unit, would also encourage more investment in Pakistan’s clean energy market
He said that the maximum off-take of electricity from these wind power plants also aligns with the Renewable Energy Policy 2006, according to which local and foreign investment took place and the existing energy purchase agreements were adopted.
Saquib Fayyaz Magoon, SVP FPCCI, maintained that recently K-Electric has showcased its efforts to achieve a 30 per cent 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.
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.
. 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 centre of Punjab; owing to which it is getting electricity from power plants in Punjab at much higher 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, said that cheaper electricity from renewable energy plants are being curtailed; which is also against the Special Investment Facilitation Council’s (SIFC) clean energy policy. Mr 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 Jawed mentioned 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, UK Government’s British International Investments plc and Islamic Corporation for Development . 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.
