Federal Minister for
Power Division, Sardar Awais Ahmad Khan Leghari announced the ending of upfront
tariff policies and awarding contracts for power generation through renewable
energy resources in all over the country for the first time in history; under a
transparent competitive bidding process. He expressed these views in senate
proceeding on Monday here in Islamabad.
While congratulating the
nation on achieving this milestone, Federal Minister for Power Division shared
with house that Government of Pakistan is taking serious measures to harness
the available RE potential of the country to diversify its energy mix and
ensure energy security and sustainable development in the country. In this
regard, Competitive bidding to award generating 400 megawatt wind electricity
and 600 MW solar power will be held after a period of eight weeks, which will
have great impact to meet future energy needs of the country at affordable
pieces.
Federal Minister for
Power Division Sardar Awais Ahmad Khan Leghari expressed that Pakistan has now
surplus electricity to facilitate our customers, and we do not need to award
contract on upfront tariff basis. Renewable energy resources like wind, solar,
biogas, small hydel plants will be carried under an open competitive bidding
process. He said that power generation companies were being given a specific
profit for the power generation but now investors would be invited for the
competitive bidding to get the lowest rates and pass on maximum benefits to
consumers. Sardar Awais Ahmad Khan Leghari further shared that NEPRA
determines the tariff for all power generation including solar and wind energy
keeping into account the international prices, consumer interest and the
overall impact of cost of different technologies on the basket price. The share
of renewable energy is about 5.8% in the energy mix at the moment which does
not impact the basket price. Moreover, the costs and tariffs of RE technologies
have declined significantly making them at par with conventional resources.
In addition, there are
no capacity payments involved in RE power projects and all payments are made
only for delivered energy. Therefore, wind and solar power plants do not
have any negative impacts on the common people, exports and industrial
production. Rather, wind and solar power are environment friendly and clean
sources of power generation and do not have any negative environmental
implications.
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