KARACHI: Mian Nasser Hyatt Maggo, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has demanded of the federal government to amend the decision of the Cabinet Committee on Energy (CCOE) dated April 4, 2019 paving the way for foreign investors renewable energy projects worth US$500 million to move forward.
Maggo said that high cost of energy coupled with circular debt was hindering industrial growth, and with rising oil prices, it was imperative to bring down the energy cost for sustainable economic growth, and in line with the vision of Prime Minister Imran Khan to increase renewable energy share in the power mix to 20 by 2025, cheap renewable energy projects must be inducted.
He said that Nepra recently awarded Pakistan’s lowest wind and solar power tariff’s at an average of Rs5.95/kwh to twelve projects of 670MWs, and if elapsed, they would deprive the consumers of Rs20 billion/annum savings in energy cost as they would displace the expensive energy being produced by GENCOs which were inefficient and near retirement.
He further said that there was a shortage of approximately 3000MW in peak demand based on current energy mix and taking into consideration the efficiencies and line losses, there was an urgent need to install additional capacity of 5,000MW to meet only the current demand, let alone the expected growth in population and economy.
He expressed frustration at the slow pace of decision-making by the federal government as these projects sponsored by foreign investors had been waiting and willing to invest in the RE power sector of Pakistan for the last several years. Abrupt policy changes and lack of timely decisions had hampered the FDI and driven away investors to other attractive destinations.
He further said that it was in the supreme national interest to amend the CCOE decision as it would not result in any subsidy, grant or concession, but it would pave the way for bringing in the much needed foreign investment to the tune of US$500 million within the next six months.
Copyright Business Recorder, 2021
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