Installed capacity of electricity registers 7.5 per cent growth

ISLAMABAD: The installed capacity of electricity has reached to 35,972 in 2020 against 33,452 MW in April 2019, posting a growth of 7.5 per cent.

According to Economic Survey 2019-20 released on Thursday, the share of hydro and nuclear in energy mix has increased in FY2020 while thermal share decreased.

The hydro share is recorded as 30.9 per cent in FY-20 as compared to 25.8 per cent in FY-19. Similarly the thermal share remained 58.4 per cent in FY 20 as compared to 63 per cent in FY-2019.

Currently, thermal has the largest share in RLNG are other cheaper sources.

Significant growth of RLNG usage in energy mix has helped in improved supply to various power plants like Bhikki, Haveli Bahadur Shah, Balloki, Halmore, Orient,

Rousch, KAPCO, Saif and Sapphir being supplied to fertilizer plants, industrial and transport sectors.

Meanwhile, the Government is emphasizing on utilization of indigenous and environmentally clean energy generation resources.

In this regard, the promotion of alternative and renewable technologies is amongst the top priorities of the Government.

Several initiatives have been taken to create a conducive environment for the sustainable growth of the clean energy sector in Pakistan in order to harness the potential of indigenous renewable energy resources.

The development of Alternative and Renewable Energy (ARE) Sector was initiated under a phased, evolutionary approach constituting a strategic policy implementation roadmap under Policy for Development of Renewable Energy for Power Generation, 2006 (RE Policy 2006).

The aim was to increase the deployment of alternate renewable energy ARE technologies (ARETs) in Pakistan.

The Government is proactively pursuing the exploitation and utilization of its indigenous power generation resources as a part of its vision in order to achieve strategic objectives of energy security, decreasing dependence on imported fuels and providing sustainable energy supplies for economic growth.

The development of renewable energy based power generation projects is being pursued on IPP mode through private sector investors.

ARE promises a higher proportion of the national energy supply mix and helps ensure universal and affordable access to electricity in all regions of the country.

Several ARE projects, initiated under the RE Policy 2006, were not able to proceed with their development due to restrictions imposed vide decisions taken by Cabinet Committee on Energy (CCOE) dated 12th December, 2017.

Under the vision of the current Government to exploit clean energy resources and increase the share of ARE in the energy mix, the CCOE allowed implementation of projects that had already achieved significant milestones of project development by placing them into three categories.

Under Category-1: 19 projects of 531 MW that have already been issued Letter of Support (LOS) subject to revision of tariff in case tariff determination has been done since more than one year or if the tariff validity period has lapsed

Under Category-II: 22 projects of 1199.3 MW that have acquired tariff and generation license subject to revision of tariff in case tariff determination has been done since more than one year or if the tariff validity period has lapsed and under Category-III: 104 projects of more than 6000 MW cumulative capacity holding LOIs to be allowed to proceed ahead after becoming successful in a competitive bidding to be undertaken as per demand communicated by NTDC.

In compliance of the CCOE’s decision, Alternative Energy Development Board (AEDB) has actively been facilitating the said projects as per the criterion set by the CCOE.

12 wind power projects with a cumulative capacity of 610 MW have been facilitated to successfully achieve Financial Closing in November, 2019.

A new Alternative & Renewable Energy Policy (ARE Policy 2019) has been formulated consequent to expiry of RE Policy 2006 in March, 2018.

The policy aims at creating a conducive environment supported by a robust framework for the sustainable growth of ARE Sector in Pakistan.

The GOP’s strategic objectives of affordability of electricity, energy security, availability for all, environmental protection, sustainable development, social equity and mitigation of climate change will further be harnessed under the ARE Policy 2019.