ISLAMABAD: The government of Punjab has urged the federal government to issue necessary instructions for conduct of the first round of bidding for RE projects under the policy on priority basis.
In a letter to Chief Executive Officer (CEO) Alternative Energy Development Board, Punjab government stated that its Energy Department is working towards promotion and development of local indigenous renewable energy resources for sustainable power generation in the province.
Energy Department, GoPb is committed to developing environment-friendly RE-based power projects in line with the vision of GoP to increase RE share in overall Pakistan fuel mix - 20% by year 2025 and 30% by year 2030 as per the targets set in ARE Policy 2019.
PM for early completion of renewable energy projects
According to Punjab Government with active facilitation of Energy Department/Punjab Power Development Board (PPDB), 5x100 MW Solar Power Projects (SPP) have successfully been completed at Quaid-e-Azam Solar Park, Bahawalpur and Layyah. The SPPs were the very first grid-connected solar projects in Pakistan.
These SPPs have, so far, injected more than four billion units of electricity into the national grid. Further, Energy Department, GoPb has also completed many off-grid initiatives including conversion of public institutes/offices to solar power, biogas-based pilot projects for production of gas & electricity, energy efficiency & conservation measures, etc. Many other similar RE off-grid initiatives are, presently, underway.
The government of Punjab has further stated that after approval of ARE Policy 2019 by the Council of Common Interest (CCI) in August 2020, Energy Department GoPb/PPDB prepared Punjab RE portfolio with an aggregate capacity of 6,445 MW with due consideration to resource and grid a reliability.
This RE portfolio comprises of pipeline solar and wind power projects, World Bank identified short, medium and long term RE potential projects and new technology projects under the Policy.
The Punjab RE portfolio was shared with AEDB/Ministry of Energy, Power Division (MoE) on January 5, 2021, January 21, 2022 and July 7, 2022 for consideration and approval.
The government of Punjab argues that ARE Policy 2019 and the CCOE decision of April 4, 2019 provides that all future RE based procurements in Pakistan will be made on competitive bidding basis.
In this regard, the first round of bidding, amongst the Category-II projects as per above CCOE decision, is to be conducted by AEDB.
Thereafter, following rounds of bidding will be carried out by provincial facilitation agencies as per the Indicative Generation Capacity Expansion Plan (IGCEP) of GoP/Nepra recently approved IGCEP 2022-31 with block-allocations for utility scale solar and wind power projects; and the first allocated solar power block of 3,120 MW to start generation in 2025.
The Punjab government has apprised that even after almost three years of approval of the Policy, AEDB has not yet conducted the first round of competitive bidding in Pakistan.
Resultantly, despite readiness of Energy Department, GoPb and due allocation available in IGCEP, the subsequent rounds of bidding could not be conducted in Punjab. This situation has practically put Pakistan RE sector in suspension and RE based power generation targets at threat.
The Punjab government maintains that in view of the existing scenario and in best interest of Pakistan’s RE sector, necessary directions may be issued for conduct of first round of bidding for RE projects under the policy on priority basis, adding that early intervention in this regard would enable timely development of new RE based power projects in Punjab/Pakistan for addition of clean and affordable electricity into the National Grid.
Copyright Business Recorder, 2023
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