An update on renewables

The only major source of renewable energy that has been making it to the country’s energy mix is hydro power. Other sources like solar and wind have just recently entered the power stream. According to a recent report by International Renewable Energy Agency (IREA), the renewable sources contribute less than 12 percent to the total primary energy supply of which hydro power occupies almost the entire share.

While the theoretical, technical or feasible potential of the renewables have been highlighted time and again, the key features of the new report by the IREA prepared in cooperation with the Government of Pakistan are the solutions that it proposes for the deployment of renewable resource while shedding light on the support policies and initiatives at the federal and provincial levels, and grid infrastructure facilities in the last three to four years.

According to the report, titled “Renewables Readiness Assessment”, some prominent initiatives have been taken at the federal level in line with the Alternative and Renewable Energy Policy 2006 guidelines. AEDB has initiated upfront tariffs for wind, biomass and solar PV technologies, which not only avoids drawn-out individual tariff negotiations with NEPRA, but will also assist in fast-tracking the financial closure of projects. The shift towards competitive bidding for determination of energy tariffs is to encourage competition in the power sector and ultimately reduce the cost of electricity for the end consumer.

Also, in a bid to improve transparency, standardised templates have been formulated for energy purchase agreements and implementation agreements for power generation projects for renewable energy, which saves time and cost to the investors. The government also introduced net metering scheme in 2015, which was revised in January 2018, so that residential, commercial and industrial consumers can feed self-generated surplus power into the grid. The regulator has also amended the grid codes that were traditionally developed for thermal power projects to facilitate interconnection and power evacuation from wind, solar power plants. However, the report highlights that further amendment is still required. In order to restrict the influx of low-quality and substandard equipment especially by off-grid projects (not connected to the national grid), the government has also been developing quality standards for importing solar equipment.

Among the provincial initiatives, Punjab Energy Department has been lauded for establishing Quaid-e-Azam and Chishtian solar parks; Quaid-e-Azam wind park; setting up hydropower projects in public and private sectors; and running programmes for electrification of schools, basic health units and tube wells using solar energy.

Initiatives for renewable energy by the Khyber Pakhtunkhwa Energy and Power Department highlighted in the report include harnessing the huge hydropower potential in the province; developing hydropower projects in both public and private sectors through a dedicated SPE, Pakhtunkhwa Energy Development Organization; and achieving rural electrification through solar and micro-hydropower projects.

The Sindh Energy Department has issued LOIs for wind and solar PV projects with combined capacity of over 2900 MW; and the provincial government has implemented Sindh Land Grant Policy for renewable energy projects to facilitate wind and solar power projects.

The Balochistan Energy Department has been undertaking various programmes for off-grid solar applications for water pumping and residential systems.

Despite these efforts, the pace of growth of renewables remains slow in the country. The recommendations by the international agency revolve around a comprehensive integrated power generation plan along with a target for renewable energy development; competitive procurement for reducing overall cost of the renewable energy; setting up of special renewable energy zones; involving private sector in the development of transmission infrastructure; development of policy and regulatory frameworks for rural electrification – all undoubtedly necessary.