ISLAMABAD: Pakistan Foreign Investors Forum (FIF) has urged the government to amend the decision of the Cabinet Committee on Energy (CCoE) about renewable energy projects thereby paving the way for $470 million.

According to Khurram Tariq Sayeed, Founder President, FIF, change in CCoE’s decision of April 4, 2019, would result in the lowest wind & solar tariff of Rs 5.95/kwh and fulfill the vision of Prime Minister Imran Khan to increase the share of green energy in the power mix of Pakistan to 20 percent by year 2025.

Sayeed further stated that there was a shortage of 3000MW in peak demand based on current energy mix and taking into considerations the capacity factor and line losses, there is an urgent need to install additional capacity of 5,100MW to meet only current demand.

He emphasised that early completion of those projects would result in savings of Rs 20 billion per annum by replacing expensive energy being produced by Gencos which were inefficient and near retirement.

He expressed frustration at the slow pace of decision making by the Federal Government as those projects were sponsored by foreign investors who had been waiting and were willing to invest in the R E power sector of Pakistan for last several years.

“Abrupt policy changes and lack of timely decisions have hampered the FDI and driven away investors to other attractive destinations,” he added.

Sayeed further stated that it was in the supreme national interest to amend the CCoE decision as it would not result in any subsidy, grant or concession. “On the contrary it will pave the way for not only reducing the energy cost of the country, but also import bill and circular debt. It will also bring in much needed foreign investment to the tune of $470 million within the next six months,” he concluded.

Copyright Business Recorder, 2021