ISLAMABAD: Pakistan and United States have discussed phasing out of coal-fired power plants, private sector investment in renewables, issues of wind projects of DFC and continued LNG supply through M/s Excelerate, a US company, which recently had its busiest LNG operation in Pakistan, as well as, throughout the region, well-informed sources told Business Recorder.
On March 13, 2023, Ministry of Foreign Affairs, in a letter to Power Division had indicated that in the Energy Security Dialogue and other interactions, US International Development Finance Corporation representative would raise the issue of tariffs related to five wind power projects in Sindh.
MoFA, in its communication requested Power Division to resolve pending issues of tariff readjustment amicably as it would lead to the US investment by DFC and private sector, the sources added.
The United States and Pakistan concluded the Energy Security Dialogue on March 15, 2023, chaired by Pakistani Federal Minister for Energy Khurram Dastgir Khan and US Department of State Assistant Secretary for Energy Resources Geoffrey Pyatt. Pakistan and the United States affirmed a mutual commitment to advance the transition to renewable energy and promote a more stable, secure, and prosperous energy future for both nations.
Crucial energy dialogue with US today
According to joint statement, officials and experts engaged on energy issues and areas for cooperation, including Pakistan’s renewable energy transition, electric vehicles, and increasing the participation of women in the energy sector.
Both governments resolved to continue deepening bilateral partnership through the US-Pakistan “Green Alliance” framework. The “Green Alliance” framework will help the United States and Pakistan jointly face climate, environmental, and economic needs, especially through partnership on renewable, sustainable, and clean energy.
The United States and Pakistan acknowledged their long history seeking to advance energy cooperation and sustainable economic growth. For over 50 years, the United States has invested in Pakistan’s power generation, including in clean energy through hydropower, which continues to benefit millions of Pakistanis today.
Through the Energy Security Dialogue, the two governments made new commitments to advance energy cooperation.
The United States announced new programs in Pakistan, including a $500,000 project to restore electricity infrastructure in flood-affected areas in Sindh, a grant to further research and development of electric vehicles at the Lahore University for Management Science, and support for a second cohort of the US-Pakistan Women’s Council’s Future of Women in Energy Scholars Program launched with Texas A&M University to support women’s leadership in renewable energy.
The two governments committed to work together in the coming year to help Pakistan reach its goal of 60 percent renewables by 2030. The delegations look forward to the United States-hosted U.S.-Pakistan Energy Security Dialogue in 2024.
Initially, the United States had indicated that during Energy Security Dialogue, the issue of oil procurement of Russia will also come under discussion. However, neither official statement nor any official has referred to the matter.
Copyright Business Recorder, 2023