ISLAMABAD: Prime Minister Shehbaz Sharif has instructed the Power Division to conduct a thorough review of base load power requirements and analyze the costs of retiring low-efficiency power plants versus transitioning to solar and renewable energy solutions.
These directives were issued during a high-level meeting discussing the Integrated Generation Capacity Expansion Plan (IGCEP), solar power projects, floating solar initiatives, Saudi Arabia’s ACWA Power projects, and the decommissioning of generation companies (Gencos).
The prime minister emphasized the need for weekly updates from Minister for Power Awais Leghari on electricity off-take under the subsidy-neutral Winter Incentive Package, which was approved by the IMF for two months—December 2024 and January 2025.
To address inefficiencies, the Power Division has been tasked with auctioning the dead assets of redundant Gencos through an open and transparent process, ensuring live media coverage. Non-compliance by the Central Power Generation Company Limited (CPGCL) management in disposing of these assets drew sharp criticism, resulting in the suspension of three Genco CEOs: Abdul Vakeel (JPCL, Genco-1), Junaid Ahmed Baig (Genco-II), and Sabeeh Uz Zaman Faruqi (Genco-III).
The meeting also prioritized the restructuring of the National Transmission & Dispatch Company (NTDC) into Independent System and Market Operator (ISMO), NTDC-Assets, and NTDC-Grid, directing the Power Division to expedite the process.
Key discussions included advancing solarisation efforts. A committee on solar power was tasked with analyzing additional solar capacity for both on-grid and off-grid projects, alongside utility-scale plants. Meanwhile, a public awareness campaign on the Solar Net-Metering Initiative, launched in 2017, is set to roll out before summer 2025, in collaboration with the Ministry of Information & Broadcasting.
Addressing water resource challenges, the Ministry of Water Resources was directed to develop a detailed water storage plan, including financial strategies that avoid burdening power tariffs.
The prime minister also called for a comprehensive review of strategic hydro and nuclear power projects under the IGCEP simulations, underscoring a long-term vision for energy sector sustainability.
Story by Naveed Butt
